Slides
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QUARTERLY RESULTS Q1 2025 QUARTERLY RESULTS Q1 2025
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Emil Sallnäs CEO & Founder Linn Gäfvert CFO AGENDA Quarterly Update Financial Overview Performance by Segment Q1 Summary M&A Delta Wines Final Remarks Q&A
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QUARTERLY UPDATE
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Q1 PERFORMANCE SUMMARY Strenthend Gross margin 21,2% (19,1) Net sales decreased by 1.0%. Organic growth of -0.9% (2,8) Continued market share gains in the Nordics Adj. EBITA margin 5,4% (6,3) Q1 PERFORMANCE SUMMARY Continued market share gains in the Nordics Strengthened Gross Margin 21.2% (19.1) Sales affected by calendar effect of Easter. Net sales -1.0%. Organic growth -0.9% (2.8). Adj. EBITA margin 5.5% (6.3)
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FINANCIAL OVERVIEW
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SLIGHT DECREASE IN NET SALES Net Sales per segment Q1 2025 vs Q1 2024, SEKm • Nordics – Effected by timing of Easter. Net Sales Q1 2024 Nordics eCom Other Eliminations Net Sales Q1 2025 904 -10 -1 1 0 895 -1.0%
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• Improved Adj Ebita in Nordics from strong GM improvement. • Profitability impacted by investment in growth. LOWER ADJ EBITA MARGIN Adjusted EBITA per segment Q1 2025 vs Q1 2024, SEKm 57 4 -6 -5 0 50 Adj. EBITA Q1 2024 Nordics eCom Other Eliminations Adj. EBITA Q1 2025 6.3% 5.5% -13.0%
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2023 2024 2025 NET WORKING CAPITAL Net Working Capital NWC/Net Sales RTM Net debt Net debt to EBITDA RTM 1.0x 1.7x 1.3x 506 428 486 Net Working Capital, SEKm Net Debt, SEKm 2023-Q1 2024-Q1 2025-Q1 10.0% 8.3% 9.5% 353 333 457
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CASH FLOW EFFECTED BY SEASONALITY • Cash flow from operating activities was impacted by seasonal effects. The build-up for Easter had a significant impact on NWC. • Cash flow from financing activities according to plan. Cash Flow Q1, SEKm Cash 2025- 01-01 Operating activities before WC Change in WC Investing activities Repayment of loans Other financing acivities Cash 2025- 03-31 31 33 -33 2 10 -7 -14
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PERFORMANCE BY SEGMENT
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Market Viva Wine Group Viva MS% -9.9% -6.8% 23.0% (22.3%) -7.1% -5.3% 28.6% (28.1%) -19.1% -15.0% 22.1% (21.1%) -12.1% -8.3% 7.1% (6.8%) SEGMENT NORDICS Monopoly volume & market share development Q1 2025 # 1 in the Nordics Clear market leader in Wine in the Nordics at new record level of 23% Decrease in Market mainly from Easter and consumer sentiment Channel shift in Finland affects Monopoly market
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Q1 2024 Q1 2025 SEGMENT NORDICS – NET SALES AND ADJ. EBITA DEVELOPMENT Net Sales decreased by 1.3% vs Q1 2024. Organic growth of -1.2%. Adj. EBITA margin - increase in Q1. Main driver is an increase in GM percentage. Adjusted EBITA margin 6.5% 7.1%48 52 -1.3% Q1 2024 Q1 2025 742 732 Net Sales
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SEGMENT VIVA ECOM Slight growth in customer base vs Q4 2024 due to due to improved CRM and testing of new customer acquisition channels Organic growth in the quarter of 0,2% despite continous low consumer sentiment VICAMPO brand face lift launched by end of March
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Q1 2024 Q1 2025Q1 2024 Q1 2025 SEGMENT VIVA ECOM – NET SALES AND ADJ. EBITA DEVELOPMENT Organic growth of 0.2%. Net sales -0.3% vs Q1 2024. Adjusted EBITA% below Q1 2024 is mainly driven by increased investment in customer acquisition 161 160 Adjusted EBITA margin 3.7% 12 6 -0.3% Net Sales 7.6%
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Q1 Summary Continued gain of market share M&A – increased deal flow OPEX develops according to plan Impact from calendar effect of Easter
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M&A Delta Wines
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2,0 2,3 2,8 3,3 3,8 4,0 4,2 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Viva Wine Group – an entrepreneurial-driven platform with decentralized innovation 14 countries One central function 12 operating companies 20+ entrepreneurs One entrepreneurial culture Target Wines AS One way of operations Nordic market leader One of the leading wine online retailers in Europe Sales development (SEKbn)
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Target market – Platform acquisitions Target market – Bolt-on acquisition Potential platform acquisitions in key new geographies or markets with limited presence. Bolt-on acquisitions with high strategic fit and direct synergies. M&A strategy Future opportunities Acquisitions into certain niches to broaden assortment or channels in the Nordic wine monopoly markets (2022) Target Wines AS (2024) Continuing the M&A-driven expansion, acquiring Delta Wines to strengthen position in the European wine market
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Introduction to Delta Wines, a leading European B2B wine supplier EUR ~186m FY’24 Revenue1) Financial snapshot ~6.8% FY’24 Adj. EBITDA margin1) ~9.4% CAGR Adj. EBITDA ’19-’242) 85% 7% 4% 4% <1% Netherlands Poland Czech Republic Belgium Finland Revenue by geography Business overview Import: 350 suppliers from >25 countries Distribution: >1,500 clients in 4 main markets Retail clients E-com Food service Wine shops Export 1) The Delta Wines financial information presented herein refers to preliminary, unaudited, IFRS figures. 2) Based on local GAAP #1 market position in retail and wine shops 1985 Founded
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Creating a broader, more diversified platform for sustainable long-term growth Strengthened market access and diversification Positioned to deliver profitable growth together 2 1 • Establishing a platform in the Netherlands through market leadership – a high potential market, being one of Europe’s most developed and diversified wine markets • Creating a broader, more diversified wine group through increased share of non-Nordic B2B revenues Strong fit High synergy potential 4 3 • Acquiring a leading European B2B wine distributor – with EUR ~186m1) in net sales and a track-record of strong profit growth • Clear potential for operational synergies and value-add through efficiency gains, innovation and sales growth • Strong alignment between Viva Wine Group and Delta Wines in regards of procurement, wine expertise and product development • Delta Wines is led by a highly regarded, entrepreneurially driven team • Management will remain in their roles and as minority owners to support continued growth and ensuring continuity, cultural alignment and successful integration 1) The Delta Wines financial information presented herein refers to preliminary, unaudited, IFRS figures for FY’24.
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Delta Wines sales office and distribution centre Shared platform creates synergies Delta Wines head office and distribution centre Delta Wines sales office Both companies can benefit from complementary market channels across the Nordic region and the rest of Europe Delta Wines adds presence in new and high-growth markets beside the Netherlands, such as Poland, enabling further geographic expansion for the group Opportunity to bring Viva Wine Group’s product portfolio to Delta Wines’ existing markets Viva Wine Group – current presence Delta Wines – current presence Viva Wine Group distribution centre
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Combined group after transaction SEK, FY ‘24 Revenue SEK 4.2bn SEK 2.1bn1) SEK 6.3 bn EBITDA margin 9.1% 6.8% 8.4% Geographic presence Strong position in the Nordics, and Germany with smaller footprint in other European markets Strong position in the Netherlands and presence in Poland, Czech Republic, Belgium, Finland and Norway Industry-leading in Europe Sales channel Nordic B2B and European B2C Only B2B Comprehensive and diversified channel strategy with sales both direct to consumer and through wholesale 1) All financial information is preliminary and refers to unaudited IFRS-figures. Delta Wines financial information is translated to SEK based on currency rates for the corresponding period.
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Summary of the acquisition Viva Wine Group has entered into a binding agreement to acquire 88.59 percent of the shares in Delta Wines for a purchase price of EUR 57 million. The purchase price corresponds to an Enterprise Value of approximately EUR 76 million on a cash- and debt-free basis, corresponding to an adjusted EV/EBITDA 2024 of 5.9x 1) The acquisition is expected to be accretive to Viva Wine Group’s earnings per share from day one of the completion of the acquisition 1) The Delta Wines financial information presented herein refers to preliminary, unaudited, IFRS figures. The acquisition will be financed through a new term loan facility provided by SEB and Danske Bank, under the existing revolving credit and term loan facilities agreement As of Mar’25, Viva had a reported net debt position of SEK 506m and a net debt/EBITDA of 1.3x. Following the completion of the acquisition, the net debt/EBITDA is expected to temporarily exceed 3x 2) 2) All financial information is preliminary and refers to unaudited IFRS-figures for the purpose of describing the hypothetical financial impact after Viva Wine Group’s acquisition of Delta Wines. Delta Wines financial information is translated to SEK based on currency rates for the corresponding period.
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Overview of segments post acquisition The group’s combined sales split by segment for 2024 would have been approximately • B2B 89% • B2C 11% Viva Wine Group will, following the completion of the acquisition, consolidate Delta Wines into the existing Nordic segment, which will be renamed to B2B. The Company's existing eCom segment will be renamed as B2C
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FINAL COMMENTS
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Final remarks Great cultural fit Financial targets to be reviewed EPS accretive Strategic acqusition with synergies
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Q & A
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QUARTERLY RESULTS Q1 2025