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Marie Brizard battles headwinds in H1
Despite “short-term headwinds”, French drinks group Marie Brizard Wine & Spirits has reported a 3.9% net sales increase for the first half of this year.
MBWS’s net sales hit €212.5 million in the first half of this year
In H1 2017, the firm’s net sales hit €212.5 million (US$253m) and gross profit grew to €72.5m, compared to €69.7m in H1 2016.
Attributable net income increased to €2.2 million compared to -€13.5m a year ago thanks to the sale of Marie Brizard’s historic headquarters in Fondaudège, Bordeaux.
EBITDA fell by €1.9m due to a “reconfiguration of routes-to-market in Poland and the US” at the end of 2016.
“Additionally our businesses have continued to face a number of ongoing challenges, such as significant pricing pressure in Poland, evolving dynamics in the vodka market in the United States, and the lacklustre growth of spirits in France,” said Jean-Noël Reynaud, CEO of MBWS.
Reynaud also stated that MBWS increased advertising and promotion spend by €3m in the first half of the year.
“These investments, in addition to the market factors mentioned, have affected our short-term profitability, particularly in the first quarter of the year,” he added.
Nevertheless, Reynaud highlighted market share gains for William Peel Blended Scotch, Sobieski vodka, and Krupnik liqueur, as well as “dynamic growth” for Marie Brizard liqueurs and Cognac Gautier.
In terms of regions, MBWS saw a net sales decrease of 1.9% in Western Europe, Middle East and Africa; in central and eastern Europe EBITDA dropped 3.6%; net sales fell 12.1% in the Americas due to competition in the vodka segment; and in Asia Pacific, MBWS experienced growth of 34.5% following a “ramp-up” of William Peel’s distribution in China.
Looking to the second half of 2017, MBWS expects pricing pressure in the US and Poland will have a “potential short-term negative impact on the company’s margin”.
In June this year, Marie Brizard’s namesake liqueur brand unveiled an “exceptionally rare” liqueur once served on board the doomed RMS Titanic.