2015 full-year results

Transcription

1 2015 full-year results

2 Contents : A successful turnaround full-year results : On the road to profitable growth 2

3 12015: A successful turnaround

4 A new name for the Group: Marie Brizard Wine and Spirits, MBWS To capitalize on: Strong and meaningful roots: France and Bordeaux A story dating back to 1755 An acknowledged know-how An internationally-recognized name, distribution in more than 100 countries A perfect match with the mission defined in BiG 2018 We provide our clients with trustworthy and audacious brands packed with flavors and experiences The stated intention of beginning a new chapter of growth and profitability 4

5 A new Group culture based on four values A shared corporate culture to drive our profitable growth objective 5

6 Strengthening of the pillar brands positions France: Fruits and Wine: 28.9% market share 1, positive impact of the advertising campaign launched during the summer of 2015 William Peel: 23.4% market share 2 (+1.5 pp vs. 2014) and volumes: +5.3% (vs. market -1.4%) Sobieski: n 2 player on the vodka market and n 1 player in imported vodka in France; 2018 targets reached as of the end of 2015 Poland: Krupnik: 15.6% market share 3 (+1.5 pt vs. 2014), reinforcing its position as the n 2 player on the polish clear vodka market Sobieski: growth momentum Launch of William Peel and Fruits and Wine Lithuania: promising launch of William Peel and Fruits and Wine Spain: strong volume growth of Marie Brizard 1 Source: IRI YTD P Source: Nielsen YTD P , Scotch Blend Source : Nielsen YTD P , Vodka 6

7 Progress report on the BiG 2018 strategic plan: Rationalisation Wholesale & Retail (Poland) Retail activities sold in May 2015 Manufacturing equipment (Poland) - Real estate (Poland and France) Sales agreements in December 2015 A target to achieve divestment proceeds of 40m. Sales agreements to date: 28m Remaining assets to be sold Wholesale activities in Poland Manufacturing equipment in Poland Other real-estate properties inpoland 75% of the objective already achieved 7

8 1 Progress report on the BiG 2018 strategic plan: Optimization Vodka manufacturing: Insource distillation capacity and rationalize footprint 2 Fruits & Wine manufacturing: Secure and upgrade to support high growth Liqueur Manufacturing: Fondaudège transfer Logistic network reconfig.: Moncigale / Indirect purchasing synergies Purchasing costs: Group synergies and purchasing productivity 6 Whisky sourcing strategy: Secure sourcing for WP 7 Route to Market reconfiguration: Focus on US Export organization: Integrated organization / streamlined logistics SKU rationalization: On all product ranges Recipe reformulation: Recipe cost reductions, notably for Vodka Commercial excellence: Category mgt and sales best practices Sales & Operations Planning: Governance and process best practices 8

9 A Group structured for growth 2015 saw the Group undergo an in-depth transformation: Creation of a solid executive committee of recognized professionals in their sector or position, Total overhaul of financial control and HR management Normalization of the Group s relations with the tax authorities Confirmation by the Direction des Vérifications Nationales et Internationales (DVNI, the French National and International Audit Office) of the terms of an agreement ending the dispute between the Company and the tax authorities regarding the deductibility of the interest charges on the FRN debt A Group structured to achieve its objectives Attention totally focused on growth 9

10 Confirmation of the Group s ambition to be a multi-regional player at the heart of the market According to Canadean, the standard category is expected to drive more than 50% of the absolute volume growth in the Group s 3 key markets over : 56% in the USA 57% in France 76% in Poland Hence confirming the accuracy and potential of Marie Brizard Wine & Spirits positioning at the heart of the market A distinctive and value-creating positioning 10

11 Stock exchange normalization Change in the share price between 1 January and 31 December 2015:

12 22015 full-year results

13 2015 consolidated net sales in m Core Business Non-Core Business Total MBWS FY 2014 Abandoned contract effect Scope effect FY 2014 restated Organic growth Core 2.4% Non-Core -9.0% Currency Effect FY 2015 Restated for contracts abandoned in 2014 and scope effects: 2015 net annual sales, total: 451.1m, -0.3% vs net annual sales, core activities : 352.9m, +2.4% vs Q net sales: 125.0m, -1.1% vs. Q Firm focus on high-margin activities Poland: 2015 net sales: 163.9m, -8.4% vs net sales, restated for the impact of the end of third-party vodka sales in 2014 and the divestment of Galerie Alkoholi: -2.3% vs net sales from core activities, excluding the abandoned contract effect: +9.7% vs

14 2015 P&L (1/2) ( 000) 2014 Change 2015 / 2015 restated 2014 Sales 731, , % Net sales 451, , % Gross margin 159, , % Gross margin, % of sales 35.3% 31.5% +3,8 pt Ebitda 11,219 5, % Ebitda margin 2.5% 1.1% +1,4 pt 2015 Gross Margin: 159.3m, +8.3% (as a percentage of sales: 35.3%, pp) Pooling of purchases at Group level and improvement in the product mix EBITDA 2015 : 11.2m, + 118% vs (and % at constant scope) Marketing and promotional spending: + 5.5m (investments in the pillar brands: Fruits and Wine, Sobieski, William Peel and Krupnik) Personnel costs: + 4.2m, strengthening of the holding company teams Significant portion of optimization gains reinvested in growth 14

15 Breakdown in 2015 EBITDA by type % 5,1-0,3 4,8 12,7-5,5-4,2 3,0 0,2 11, Scope 2014 Gross Marketing Salaries Effect restated margin Other costs Currency 2015 effect The improvement in the gross margin helped finance the marketing investments and recruitments required to implement the strategic plan 15

16 Breakdown in 2015 EBITDA by geographical region (1/2) +130,2% 2.5 0,2 0,5 0,3-1,9 0,2 11,2 5,1-0,3 4,8 0, Scope effect 2014 restated France and inter. EBITDA in France and the international cluster: 12.4m Marketing efforts offset by the improvement in the gross margin EBITDA in Poland: 3.3m Poland US Lithuania Bulgaria Advertising investments (+ 1.7m) offset by the improvement in the product mix and the rationalization of non-strategic activities EBITDA in the United States: 2.2m Positive impact of the new transfer price policy, a better allocation of marketing spending and the subsidiary s reorganization Brazil Holding & Others Currency effect

17 Breakdown in 2015 EBITDA by geographical region (2/2) m + 4.0m + 2.5m + 0.2m + 0.5m + 0.3m - 1.9m - 0.3m + 0.2m m France & Cluster international Poland Pologne US Lithuania Lituanie Bulgaria Bulgarie Brazil Brésil Holding et & autres Others Scope Effet périmètre effect Effet Currency Change effect Improved EBITDA in every operational units Groupe 17

18 2015 P&L (2/2) ( 000) restated Change 2015 / 2014 Ebitda 11,219 5, % Underlying Operating Profit 5, % Operating Profit 5,457 (13,959) 139.1% Financial Income (6,417) (4,224) -51.9% Income Tax 7,891 (44) n/a Attributable Net Profit 5,847 (19,126) 130.6% 2015 operating profit: 5.5m, m vs Substantial reduction in non-recurring operating expenses: 6.0m vs. 23.4m in 2014 A return to an Attributable Net Profit: 5.8m, + 25m vs Financial Result: - 6.4m, cost of financial debt stable vs Tax revenue: 7.9m (at 31 December 2015, capitalization of 12m of tax loss carryforwards) All profitability indicators are positive 18

19 2015 consolidated balance sheet Assets: 8.5m reduction in client receivables Reimbursement of the carry-back receivable 12m improvement in the cash position Liabilities: Strengthening of equity capital: 204.3m (+ 5.1m vs. 31 December 2014) Reduction in deferred tax liabilities ( 14m) Reduction in financial debt ( 18.8m) A healthy and agile balance sheet with lower debt 19

20 Further improvement in WCR Operating WCR (inventories + clients suppliers) at 31/12/2015: 99.2m Down 12.9m vs. 31 December 2014, Proactive optimization strategy: rationalization of inventory levels and renegotiation of payment conditions with certain suppliers. The change in the other elements of WCR can essentially be explained by the payment of the 2 nd dividend of the continuation plan ( 14m) in March Optimized WCR level that places the Group in the leading pack of the spirits industry 20

21 Cash flow statement ( 000) 31 Dec Dec (1) Consolidated net profit 6,931 (18,228) Operating cash flow after net cost of borrowings and tax 15, Change in WCR 1 (inventories, trade receivables/payables) 12,880 58,149 Change in WCR 2 (other items) (11,762) (37,000) Taxes 30,547 (2,346) Cash flows from operating activities 40,148 20,565 Cash flows from investment activities (9,609) 3,295 Cash flows from financing activities (18,603) 17,373 Impact of fluctuations in exchange rates (10) (282) Change in cash and cash equivalents 11,928 40,950 Opening cash and cash equivalents 77,184 36,470 Cash reclassifications (5) Cash from held-for-sale operations (231) Closing cash and cash equivalents 89,112 77,184 Change in cash and cash equivalents 11,928 40,950 (1) Restated in light of the changes in accounting policy and presentation explained in Note 1 - Accounting policies and methods Available cash at 31/12/2015: 89.1m m vs. 31/12/2014 Net cash position at 31/12/2015: 71m m vs. 31/12/ CAPEX: 9.6m In line with the investment plan announced in BiG 2018 A proven ability to generate free cash flow 21

22 Reduction in net financial debt ( 000) 31 Dec Dec Change Bank borrow ings 4,621 3,294 1,327 Accrued interest on borrow ings (2) Long-term financial debt 4,638 3,313 1,325 Short-term financial debt 13,514 32,321 (18,806) FINANCIAL DEBT 18,153 35,634 (17,481) Cash & Cash equivalents 89,112 77,184 11,928 Net financial debt (70,959) (41,550) (29,409) Gross frozen debt (including DVNI) 81,500 97,000 (15,500) Frozen debt at 15/04/2016: 58.7m Following the payment of the 3 rd dividend of the continuation plan Following the reimbursement of MBWS France s continuation plan Acceleration in the reduction of the frozen debt 22

23 32016: On the road to profitable growth

24 Stock warrants restructuring 5 January 2016 General Meeting approving the public exchange offer on the existing stock warrants 28 January 2016 Closing of the public exchange offer, 60% of the existing warrants tendered: Issue of 2,628, stock warrants 5 April 2016 Exercise of almost 70% or 1,802, stock warrants Issue of 1,802,216 new shares Issue of 1,659, redeemable stock warrants 7 December 2015 Filling with the AMF of the planned information note relative to the public exchange offer 7 January 2016 Opening of the public exchange offer A 36m cash inflow 24

25 Potential dilution relating to stock warrants Maximum proceeds ( m)¹ Maximum dilution¹, ² (%) 2016 warrant OS and 2016 warrants / Act2 warrants 2023 warrants 2016 warrants OS and 2016 warrants / Act2 warrants 2023 warrants 1.8M 1.9M 0.7M 1.8M # actions % % % % March 2016 Dec April 2018 Soft call clause Dec March 2016 Dec 2016 April 2018 Soft call clause Dec Notes 1 Excluding the Actionnaires 1 warrant (whose exercise price is with a maturity date at 24 April % of the current number of shares outstanding 25

26 Positive newsflow since the start of 2016 Marie Brizard Wine & Spirits France has exited its continuation plan thanks to the early repayment of its debt MBWS France incorporates the majority of the Group s French activities (and notably owns the Marie Brizard and William Peel brands) Payment entirely realized through equity capital and made to the Administrator appointed to oversee the plan s execution Amicable resolution of the dispute with Chamarré A similar sum to that written down as provisions for risks in Moncigale s accounts, i.e. 675,000 Full exit from the continuation plan envisaged in the coming months A Group ready to seize opportunities 26

27 Financial targets reaffirmed 2016 EBITDA Significant growth vs EBITDA margin 15% 2018 sales 450m 500m 27

28 2015 full-year results