Lucas Bols H1 boosted by Passoã

Dutch spirits group Lucas Bols has reported strong revenue growth of 23.8% to €48.8 million (US$57m) in the first half of 2017, bolstered by the “successful” integration of Passoã.

Lucas Bols first half of the year reported strong growth, mainly attributed to Passoã

Passoã liqueur, which Bols took over in December 2016, contributed €9.6 million to revenue.

Foreign currencies had a negative impact of €0.2 million, due to the weaker US dollar.

The company’s global brands segment, which included Bols Liqueurs, Bols Genever, Bols Vodka, Damrak Gin, Passoã, Galliano and Vaccari Sambuca, reported a revenue increase of 34.8% to €37.4 million, mainly attributed to the addition of Passoã. The segment grew 1.6% organically.

The Passoã brand performed well, in line with expectations. The brand is showing continued strong performance in the UK, while in the USA it is listed in an additional five states.

In the white spirits segment, Bols Genever and Damrak Gin continued the positive growth trend. The Bols Liqueurs range showed low single-digit growth. After a strong recovery in 2016/17, the Italian Liqueurs performed in line with last year.

Revenue of the regional brands – comprising Dutch Genevers, Vieux, Pisang Ambon, Coebergh and continent/country-specific brands such as Regnier Crème de Cassis in Japan –  decreased 2.2% by €11.5 million compared to last year, mainly due to the phasing of shipments in Japan.

Within regions, Western Europe achieved a “very strong growth” of 50.8%.

Emerging markets performed well with revenue up by 9.8%. North America continued the growth trend with a plus of 4.8%, driven by the US. Asia-Pacific reported a decline of 3.3% as a result of the phasing of shipments to Asia.

Huub van Doorne, CEO of Lucas Bols, said: “In the first half of the 2017/18 financial year the integration of Passoã was one of our main focal points.

“We are getting more and more acquainted with the brand and Passoã is now fully incorporated in our commercial plans. The integration into Lucas Bols USA is showing the first results. The addition of the Passoã brand was the main driver of the strong revenue and gross margin growth of the global brands but they also posted organic revenue growth and higher gross margins.

“We expect continued revenue growth of our global brands in Western Europe, Emerging Markets and the USA, while Asia-Pacific will gradually return to revenue growth. EBIT rose strongly following the full consolidation of Passoã. We are pleased to offer an interim dividend of € 0.35 per share.”

Looking ahead, the company said in the statement: “The underlying market dynamics in the global cocktail market remain healthy. We expect continued revenue growth of the global brands in Western Europe, Emerging Markets and the USA, Asia Pacific is expected to gradually return to revenue growth in the second half of 2017/18.

The company will continue to benefit from the inclusion of the Passoã results for the full 12 months of 2017/18.