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Spirits boost Anora H1 sales

Nordic spirits group Anora has reported a 3.4% net sales growth for the first six months of 2022, thanks to continued market normalisation in the second quarter (Q2).

Anora owns Koskenkorva Vodka
Koskenkorva Vodka performed strongly despite a Q1 dip

The strengthening of travel retail and the on-trade drove the strong net sales growth in the company’s spirits segment, which saw an increase of 15%.

CEO Pekka Tennilä said: “I am pleased with our good net sales development in the second quarter. Anora’s net sales grew by 3.4% to €166 million (US$166.57m) compared with the pro forma net sales of €160 million in Q2 last year.

“During Q2, we saw market normalisation continue with a strong recovery of the on-trade and travel retail channels while the market volumes in the monopolies returned to pre-pandemic levels. The timing of Easter sales in Q2 this year provided a positive phasing impact on the sales of wine and spirits.

“The strong net sales growth in the spirits segment was driven by travel retail and on-trade.”

Koskenkorva Vodka reported a strong performance, despite experiencing a slight drop in sales during the first quarter (Q1) of 2022.

The release of Koskenkorva Choco-Coffee and Koskenkorva Margarita aided the brand’s success in Finland, where net sales increased driven by a strong development in the on-trade. Meanwhile, sales in the monopoly declined.

In Norway, net sales grew driven by ‘strong development’ in the on-trade. The market share development in the monopoly was strong with gains across many categories, including gin, which was aided by the launches of Engine Gin and Gibson’s Blood Orange Gin in the country.

Sweden’s net sales were also boosted by the on-trade. Anora said it had gained market share in the monopoly with strong performance in key categories by Koskenkorva and OP Anderson aquavit.

In the ‘international business’ area, the increased volumes in travel retail, the Baltics and Denmark, and the solid development in exports benefitted net sales, while sales in Germany were negatively impacted by the reduction of local inventories.

As in Q1, wine sales continued to dampen the company’s profitability, with a 6.1% net sales decrease driven by significantly lower overall market volumes, and a decline in Anora’s market share.

Tennilä added: “In the Industrial segment, net sales grew because of higher sales prices in both contract manufacturing and industrial products.”

Looking at the rest of the year, the company expects the comparable earnings before interest, taxes, depreciation, and amortisation (EBITDA) in 2022 to be between €75m-€85m.

The report noted that ‘substantial seasonal fluctuations’ in the consumption of alcoholic beverages impact the company’s net sales and cash flow.

The company said it typically generates large amounts of its revenue and cash flow during the fourth quarter of the year, while Q1 is significantly lower.

In addition, excise taxes related to the high season at the end of the year are paid in Q1, resulting in large cash outflows.

The timing of Easter fluctuating between Q1 and Q2 is also said to impact quarterly sales and profitability.

In August, Anora acquired a minority stake in Danish non-alcoholic company Ish for €5m (US$5.2m).

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