Q4 2024 Viva Wine Group AB Earnings Call Transcript
Key Points
- Viva Wine Group AB (FRA:KY1) reported a net sales increase of 8.7% for the group, with strong organic growth of 8.2%.
- The company achieved a significant improvement in profitability, with adjusted EBITA increasing by 49.6% and reaching an 8.7% margin compared to 6.3% last year.
- The Nordic segment showed robust performance, with total net sales increasing by 11.2% and an organic growth of 10.5%.
- Viva Wine Group AB maintained its market leadership in the Nordic monopoly markets, achieving record-high market shares in Q4.
- The company reported a strong operative cash flow, supported by positive effects from changes in working capital and a decrease in net debt to EBITA ratio to 1.4%.
- The ecom segment experienced a decline, with a negative organic growth of 2.2%, primarily due to weak consumer sentiment in Germany.
- There was a slight decline in adjusted EBITA in the ecom segment, attributed to decreased sales.
- The company faced challenges in the Finnish market due to changes in market dynamics, with a 5% to 10% decline in monopoly sales.
- Viva Wine Group AB anticipates OpEx to return to the same relative level to sales as in 2023, indicating potential cost pressures.
- The company is not yet reaching its growth target in the ecom segment, highlighting ongoing challenges in this area.
Good morning everyone and welcome to our Q4 2024 presentation. My name is Emil Sallnas, and together with our CFO, Linn Gafvert, I will present today for you. This is the agenda, and before we go into the quarterly update on financials, I want to start by giving you a short introduction to Viva Wine Group.
Viva Wine Group consists of two major segments, the Nordics and ecom. In the Nordic monopoly market, we are the market leader in wine. In Europe, we have a profitable ecom business across 11 markets. Our operating companies are in the Nordic monopoly markets, Sweden, Finland, and Norway. While our ecom business is based in Germany. Germany is also our main market for ecom.
Now, let's move on to the quarterly update and performance summary. In the quarter, we continue to report increased market shares in the Nordics. This is the 13th straight consecutive quarter as a listed company in which we increase our Nordic market share.
In fact, the actual growth streak is much longer, something we, of course, are very proud of.
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