1 2014 ANNUAL SALES

Transcription

1 2014 ANNUAL SALES
BELVÉDÈRE
Press release
Beaucaire, 13 February 2015
2014 ANNUAL SALES
 Sales slightly higher than foreseen by the BiG 2018 plan, at €467 million, down 4.1% comparable scope
 Increase in market share for the Group’s flagship brands in its key countries
 2014 was a year of normalisation, a review of the portfolio and the abandoning of activities and
contracts that were either non-strategic or not very profitable
 A Group in working order that has begun to implement the various components of its strategic plan
 Confirmation of its targets: H2 2014 EBITDA at least equivalent to that of H1 2014 and positive 2014
Operating Profit from Continuing Operations, excluding provisions for the non-recurring impairment on
inventories and trade receivables
Belvédère SA (Euronext Paris: BVD) today announces its unaudited consolidated sales to 31 December
2014.
Consolidated sales: -4.1% on a comparable scope basis
in €m
2013
Abandoned
contracts
Scope effect
2013
restated
Organic
growth
Currency
effect
2014
539.6
-47,3
-5,4
486.9
-20.8
0.8
466.9
-4.1%
In order to provide better readability of its activity and a better comparison with its main peers,
Belvédère has decided to carry out some changes in the way it presents its accounts:



Belvédère now publishes net sales, excluding excise duty, based on volumes sold rather than
volumes produced;
French sales and Export sales have been split apart;
United States sales have been adjusted, and are now net of rebates and discounts.
The quarterly sales figures presented in this press release for FY 2013 and FY 2014 take these new rules
into account.
Hence, on a new comparable basis, restated for contracts abandoned in 2014 and for scope effects, the
Group’s revenue was down 4.1%, in line with the weak wine and spirits market.
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Abandoned contracts (wine distributor brand contracts, end of the Pulco subcontracting contract, end of
third-party vodkas, divestment of the Danzka brand) and scope effects (Ukraine, Slovakia, Belarus)
accounted for €52.7 million (i.e. 72%) of the €72.7 million change in sales between 2013 and 2014.
In 2014, Belvédère recorded consolidated net sales of €466.9 million (€479.8 million under the previous
accounting method), down 13.5% (-13.6% excluding the currency effect) compared with 2013.
2014 activity: increase in market share in the Group’s key countries
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


William Peel in France, 21.9% market share1
Krupnik in Poland, 11.3% market share1
Fruits and Wine in France, 28.5% market share2
Sobieski in the United States, 9.4% market share in control states3
Detailed changes in sales by country
France: market share gains for the Group’s strategic pillars
The Group’s flagship brands continued to improve their market share and outstripped the French market
in volume terms.
Change in volumes vs. 2013
Market share
Market
Belvédère
Belvédère
William Peel
Sobieski
Fruits and Wine
-0.7%
+3.0%
+15.6%
+1.6%
+1.7%
+16.8%
+21.9%
+11.9%
+28.5%
Source: Nielsen and IRI, end-December 2014
All in all, Belvédère has strengthened its position as the 3rd largest player on the French market.
On the scotch whisky segment, with its William Peel brand, Belvédère is the leader with a market share
of almost 22%.
On the vodka segment, Belvédère is still the 3rd largest French player and is closing in on 2nd place.
Lastly, on the aromatised wine-based drinks segment, Belvédère remains, with Fruits and Wine, the clear
leader in its category with a market share of almost 30%.
In 2014, net sales in France totalled €193.3 million, a decrease of 3.0% compared with 2013 that was
essentially a result of the abandoning of non-profitable sales contracts.
1
Source: Nielsen, end-December 2014
Source: IRI, end-December 2014
3
Source NABCA, end-December 2014
2
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Poland: the Group’s brands held up well over the 2nd half of the year, in a market affected by increases in
excise duty
Net sales totalled €179.0 million in 2014, down 19.7%. Excluding the impact of the end of third-party
vodka sales, sales were down 8.8%.
In anticipation of the increase in excise duty that came into effect at the beginning of 2014, sales for the
4th quarter of 2013 had been particularly high in Poland. As a result, sales for the 1st half of 2014 were
negatively affected, particularly as Belvédère chose not to take part in the price war undertaken by its
peers in order to protect its margins. Over the final quarter of 2014, the Group’s brands (Sobieski and
Krupnik) saw their market share begin to rise again, reaching 12.8%1 by volume on the vodka market,
with 11.5% for Krupnik thanks to the launch of new formats and flavours.
Lithuania: buoyant growth, driven by vodka
Net sales came to €21.8 million in 2014, an increase of 25% compared with 2013. The Group’s main
vodka brands drove this growth on a market recording moderate growth.
United States: increase in Sobieski’s market share in key states
Based on NABCA (control states) figures, the vodka market grew by 2.9% in volume terms in 2014 whilst
the Group’s sales increased by 9.4% in these states3. Net sales totalled €19.9 million in 2014, down 5.0%
compared with 2013 mainly impacted by inventory clearance operations by distributors. As indicated
above, in order to ensure better readability of the Group’s activity in the United States, commercial
rebates and discounts given to wholesalers are no longer included in the sales figure. 2013 sales have
been restated as a result.
Spain: outperforming the market on a comparable scope basis
Net sales came to €13.9 million in 2014. As in previous quarters, the end of the Pulco subcontracting
contract at Marie Brizard Spain in November 2013 had a significant impact on sales growth. On a
comparable scope basis, the annual sales recorded in Spain in 2014 were down 3% on the previous year.
Volumes sold were also down 3% on a market that fell by 6.6% in volume terms1.
Brazil: growth in activity, excluding the currency effect
Net sales totalled €5.1 million in 2014, down 4.4% on the previous year. Excluding the currency effect,
sales were up 3.4%. The final quarter of 2014 was affected by the increase in excise duty in the state of
Rio on 1 November 2014.
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Events since the end of 2014
Ongoing tax disputes
In two rulings published on 29 December 2014, the Montreuil Administrative Tribunal rejected the
requests submitted by Belvédère that notably challenged the tax authorities’ refusal to reduce the
interest on the loan issued in the form of FRN (Floating Rate Notes), signed on 24 May 2006. The total of
these adjustments is approximately €25.4 million.
Belvédère has always considered these adjustments to be unfounded and, therefore, decided not to
write down provisions to this effect in its 2013 annual accounts (see the 2013 Reference Document, Tax
Risks section 4.4.2.).
Belvédère intends to challenge these two decisions in the Versailles Administrative Court of Appeal, and
is confident regarding the outcome of this dispute.
This tax receivable, should it be confirmed, would have to be cleared within the framework of the
recovery plan approved by the Dijon Commercial Court. Belvédère considers that, as things stand, no
dividends should be paid to the tax authorities as long as these tax debts are the subject of a challenge
and are not definitive.
Other adjustments regarding corporate tax and VAT, for an overall total of around €3.7 million,
concerning Belvédère and Marie Brizard & Roger International are currently being challenged by these
companies in the Versailles Administrative Court of Appeal.
It should be recalled that a request for the reimbursement of a carry-back receivable was tabled with the
tax authorities at the end of 2014. This request currently concerns a sum of €31 million.
Amendment to the liquidity contract
The liquidity contract previously signed with Rothschild on 18 September 2013 was amended on 9
February 2015, Belvédère having decided to carry out an additional contribution to the means allocated
to the contract of € 1,6 million.
The other conditions remain unchanged.
Bulgaria
Based on highly-contentious grounds and with the backing of a magistrate facing disciplinary
proceedings, at the end of November 2014 the Sofia City Court in Bulgaria decided to place the Group’s
two Bulgarian subsidiaries, Belvédère Distribution and Domain Menada, under the authority of a
temporary trustee, in place of the subsidiaries’ local management team.
Following multiples legal procedures and much diplomatic and media involvement, during the month of
January 2015 Belvédère’s rights were reinstated and local management is now again able to run the
subsidiaries in question and have unrestricted access to their premises.
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For the record, Bulgarian activities account for less than 1% of the Group’s total sales and total
consolidated balance sheet. Belvédère intends to take all necessary action to gain compensation for the
damages suffered in Bulgaria.
Belarus
Within the framework of a withdrawal from its activities in Belarus, Belvédère is considering the
upcoming divestment of the stake it holds in the Belarus subsidiary Galiart and, in the short term, its real
estate assets in Minsk.
Ukraine
Following the insolvency proceedings initiated against its Ukrainian subsidiary Ukraine LLC on a creditor’s
request (see the 2013 Reference Document, section 4.4.4), this company’s assets consisting of shares in
its (i) Italiano in Ukraine and (ii) Boisson Elite subsidiaries were divested by the liquidator within the
framework of an auction procedure in November 2014 that Belvédère was unable to participate in,
despite being a secured creditor holding approximately 85% of Belveder Ukraine LLC’s global debt.
Within this context, Belvédère has initiated a number of procedures to appeal the decision to close
Belveder Ukraine LLC’s liquidation process, and to invalidate the sale having enabled the divestment of
the Ukrainian assets organised without its involvement.
United States
Two proceedings have been initiated in the United States against Belvédère and its local subsidiary,
Imperial Brands, on the request of two of the Group’s former Board members, who are seeking the
payment of bonuses of $7.6 million and $2.0 million respectively resulting from the divestment of Florida
Distiller in 2011.
Belvédère is disputing the merits of these claims.
Outlook
2014 was devoted to the Belvédère group’s normalisation, which is now almost complete. Belvédère
intends to finalise its proactive strategy to abandon its non-strategic activities and focus on its core
businesses, as detailed in its new 2015-2018 strategic plan.
In light of the first available estimates, Belvédère is reaffirming its twofold 2014 profitability target:
 EBITDA for the 2nd half of 2014 at least equivalent to that of the 1st half of 2014 (€1.9 million),
 Positive Operating Profit from Continuing Operations, excluding provisions for the non-recurring
impairment on inventories and trade receivables.
Furthermore, given its satisfactory operational performances, notably over the 2nd half of the year, and
the market share gains it has recorded on its core businesses, Belvédère is confident regarding the
growth objectives laid out in its 2015-2018 strategic plan.
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As announced in the press release published on 27 October 2014, Belvédère is continuing its ongoing
process to allow possible new and stable investors to join the Group’s shareholder structure.
Jean-Noël Reynaud, CEO of Belvédère, comments: “Since May 2014 and my arrival, Belvédère has seen
in-depth changes. The new management committee and all of our teams have worked strenuously to
normalise the Group and put it back into operational shape. Belvédère is now an integrated group run in
accordance with management best practices. We now have clear objectives that are defined in our BiG
2018 strategic plan. Our brands’ performances prove that we are now back in the wine and spirits
industry race. Not only is our level of activity perfectly in line with our ambitions and action plan, but it
also gives us confidence in our ability to meet our targets. We have begun to work on rationalising and
optimising our activities. We are henceforth an agile multiregional group adapted to market constraints
and owning high-performance brands, which will enable us to ensure our scale-up and the acceleration of
our profitable growth.”
About Belvédère
Belvédère is a group of wine and spirits companies in Europe and the United States with a strong local presence.
The group develops a portfolio of premium spirits brands notably including Sobieski, William Peel and Marie
Brizard.
©
Belvedere is listed on Compartment B of Euronext Paris (FR0000060873- BVD) and is included in the EnterNext
PEA-PME 150 index.
Contacts:
Image Sept
Simon Zaks
[email protected]
Tel: +33 (0)1 53 70 74 63
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APPENDICES
Net consolidated sales by quarter
Consolidated sales
(millions of euros)
Unaudited data
2013
2014
Organic growth
Δ
Currency
effect
Δ constant
currency
1st quarter
2nd quarter
3rd quarter
4th quarter
188.7
215.4
208.8
243.9
149.6
180.9
183.5
202.7
-38.2
-36.1
-26.8
-41.2
-20.7%
-16.0%
-12.1%
-16.9%
-0.9
1.6
1.5
0.0
-20.2%
-16.8%
-12.8%
-16.9%
Gross cumulative sales
856.8
716.7
-142.3
-16.4%
2.2
-16.6%
1st quarter
2nd quarter
3rd quarter
4th quarter
114.9
140.1
137.9
146.7
99.2
123.5
119.9
124.3
-15.0
-17.2
-18.7
-22.6
-13.7%
-11.8%
-13.1%
-15.3%
-0.7
0.6
0.7
0.2
-13.1%
-12.3%
-13.6%
-15.4%
Cumulative sales excl. excise duty
539.6
466.9
-73.5
-13.5%
0.8
-13.6%
Geographical split in net consolidated sales
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