Lucas Bols reports marginal sales drop

Dutch spirits company Lucas Bols saw its revenues drop slightly in 2014/15 despite an improved performance in the emerging markets.

Reporting its latest full year financial results for April 2014 to March 2015, the group revealed a 1.3% sales decline to €77.7 million, blaming the “negative effect” of the Japanese yen and Russian rouble.

In Western Europe revenues declined 1.9% to €35.7m due to “challenging retail market conditions” in the UK and Belgium, however brands in the Netherlands showed double-digit growth following the introduction of Bols Vodka and Damark Gin.

Sales dropped 3.6% in the Asia-Pacific region, with growth hampered by Japanese currency and “one-off” stock reductions in South East Asia, however China saw double-digit growth.

Revenues remained flat in North America as pricing adjustments followed the transition of Bols liqueurs distribution to the group’s wholly owned subsidiary.

Due to “strong growth” in Latin America and Africa, sales in the emerging markets grew 2%, despite the negative impact of the Russian market.

“It is Lucas Bols’ strategy to strengthen and grow its global brands, a portfolio of global premium and super-premium spirits brands in the international cocktail market, while maintaining the competitiveness of the regional brands in certain local markets,” a statement from the company read.

“Revenue of the global brands, amounted to €53.9 million, organically in line with last year. The situation in Russia and price adjustment in the US negatively impacted revenue.

“Adjusted for these developments, revenue increased by 1.6%, based on strong growth achieved in Japan, China, Latin America, Scandinavia and the Netherlands.

“In addition important steps were made in stabilising the regional brands, realising revenue of €23.8 million in financial year 2014/15. This is a small decline of 0.8% organically compared to last year.”

Lucas Bols announced its intention to float shares on the Amsterdam stock exchange in January this year, as part of a bid to raise €125m.

The money will be used to “refinance the company and further strengthen its financial position” by leveraging the repayments of the business’ outstanding debt.