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Marie Brizard reports 25% profit loss in H1

French group Marie Brizard Wine & Spirits (MBWS) has reported a 7.6% net sales loss to €190 million (US$217m) in the first half of 2018, while its gross profit fell by 25%.

Marie Brizard Wine & Spirits has reported a dip in sales for H1 2018

During the first six months of 2018, MBWS saw its profit fall to €48.6m (US$55.5m), a 25.9% decrease compared to the same period in 2017. The decline was attributed to a “sharp” decrease in Poland, along with destocking in the group’s main markets.

As expected, earnings before interest, tax, depreciation and amortisation (EBITDA) for the period was -€21.1m (US$24.1m), a “significant” decrease compared to H1 2017.

In Western Europe, Middle East & Africa, net sales fell 10.6% to €58.7m (US$67m). Net sales in France dropped 9.3% to €50m (US$57.1m) due to destocking and lack of available stock of 2017 vintage rosé wine.

Net sales in Central and Eastern Europe decreased by 43.7% to €21.1m (US$24.1m) due to sales in Poland, which fell by 62.5%.

Net sales in the Americas cluster reached €7.2m (US$8.2m) – a loss of 27.6% due to the destocking of Sobieski in its old packaging in the US. Net sales in Asia Pacific fell by 19.8% to €1.3m (US$1.5m).

The group also announced its full-year 2017 results, with a net sales decrease of 1.8% to €423.3m (US$484m), compared to full-year 2016. MBWS reported an operating loss of -€72.7m (US$83.1m) in full-year 2017.

In September 2018, MBWS announced it was considering offloading some of its brands after downgrading its full-year fiscal outlook. In its latest update, MBWS said it has “decided to broaden the scope of its asset disposal scheme to include other assets whose sale would not limit its capacity to grow or execute its strategy”.

In addition, MBWS has signed an agreement with Compagnie Financière Européenne de Prises de Participation (COFEPP). The deal will see COFEPP commit to subscribe a loan of €25m (US$28.5m), at an annual interest rate of 4.56%.

The loan, which is subject to a vote of approval by MBWS shareholders, will allow for a partial recovery of MBWS’s financial situation, the repayment of some financial debt, and the strengthening of its cash position, thus enabling the acceleration of its development plan.

The group expects EBITDA for the 2018 full year to be in a range of between -€25m (US$28.5m) and -€28m (US$32m).

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