Year-end report January – December 2015

MACKMYRA SVENSK
WHISKY AB (PUBL)
Q4
YEAR-END REPORT
JANUARY – DECEMBER 2015
This Year-End Report is a translation of the original text in Swedish, which is the official version.
MACKMYRA SVENSK WHISKY AB
YEAR-END REPORT 2015
Published on 22 February 2016
EARNINGS IN BRIEF
2015
Oct-Dec
19,8
Key rations
Net sales excluding alcohol tax, MSEK
Growth in sales excluding alcohol tax
Sales Bottles, MSEK
Sales, Casks and Experiences, MSEK
Gross profits before under-absorption, MSEK
Gross profit margin before under-absorption, percent
2014
2015
2014
Oct-Dec Full year Full year
17,4
62,1
52,1
14%
-20%
19%
-19%
13,4
6,4
10,6
11,1
6,3
8,4
37,5
24,3
32,8
30,0
21,9
31,3
53%
48%
53%
60%
Gross profits, MSEK
Gross profit margin, percent
8,0
41%
6,6
38%
21,5
35%
19,9
38%
Operating profits before depreciations (EBITDA) and
under-absorption, MSEK
-0,2
-2,4
-4,4
-9,7
Under-absorption and depreciations, MSEK
Operating profits, MSEK
Interest expenses
Tax
Earnings after tax, MSEK
-2,9
-3,1
-1,8
-0,1
-5,0
-2,0
-4,4
-2,0
-1,6
-8,0
-12,9
-17,3
-8,6
-0,1
-26,1
-12,7
-22,4
-8,5
-1,6
-32,4
Cash flow after capital expenditures, MSEK
Basic earnings per share, SEK
3,6
-0,55
-2,4
-0,98
-7,0
-3,19
-27,0
-4,90
MACKMYRA RETURNS TO RAPID SALES GROWTH IN THE YEAR 2015
Sales figures for 2015 increased by 19 percent or MSEK 10 compared with the previous year due to a clear
increase in both bottles and casks. During the fourth quarter, sales increased by 14 percent. Sales to
Mackmyra’s prioritised foreign markets more than doubled and increased by MSEK 3.7 to approximately
MSEK 7.0 in 2015. The sale of private brand products constituted MSEK 2.5 of the year’s increase in sales.
The fourth quarter’s cash flow after capital expenditures was positive and amounted to MSEK 3.6 (-2.4).
Cash flow after capital expenditures improved in 2015 by MSEK 20.0 and amounted to MSEK -7.0 (-27.0).
Likewise, the beginning of 2016 is showing a continued increase in sales compared with the previous year.
•
Mackmyra showed in 2015 continued strong improvement in cash flow after investments. 2015 cash flow was
improved by SEK 20 million, which was in line with the 2014 improvement of SEK 21 million.
•
The sale of bottles increased by 20 percent in the fourth quarter due to a continued strong upward trend in sales
to Systembolaget, the prioritised export market, as well as increased sales within the private brand segment. The
sale of bottles increased by 25 percent in 2015 compared with the previous year.
•
In total, 214,000 bottles were sold in 2015 (169,500), which is the highest volume that Mackmyra has achieved
so far on a yearly basis. Selling 83,000 bottles, the fourth quarter showed the highest volume that Mackmyra
has reached for any one particular quarter.
•
Sales to Mackmyra’s prioritised export markets (excluding border trade and Travel Retail), where the
development in Germany has come furthest along, increased by approximately MSEK 3.7, amounting to
approximately MSEK 7.0, representing 19 percent of total bottle sales in 2015.
•
During the year, Mackmyra developed the private brand segment, which represents MSEK 2.5 of the total
increase in sales for 2015.
•
MACK by Mackmyra, which was introduced to Systembolaget’s to-order product range during the quarter,
experienced high sales volume and thus has been guaranteed a place in Systembolaget’s ordinary product range
as of March 2016. MACK by Mackmyra sells for SEK 299 at Systembolaget and is a strategic step in the price
segment where the majority of the volumes of whisky are sold today.
•
Motörhead Whisky, which is sold to a distributor, sold very well during the quarter, and it will have a place in
Systembolaget’s ordinary product range as of March 2016.
•
Sales of Casks and Experiences for the year 2015 increased by 11 percent. One important success factor behind
the positive trend is the whisky warehouse that was established in Lofsdalen. During the fourth quarter, sales
increased by 2 percent.
2 YEAR-END REPORT 2015
MACKMYRA SVENSK WHISKY AB
SIGNIFICANT EVENTS DURING THE FOURTH QUARTER
•
Sales to Systembolaget and Mackmyra’s
prioritised export markets showed strong
development during the quarter.
•
The fourth quarter’s cash flow after capital
expenditures was positive and amounted to
MSEK 3.6 (-2.4).
•
MACK by Mackmyra was introduced to
Systembolaget’s to-order product range.
•
Vinterrök, Mackmyra’s winter edition, was
launched for sale at Systembolaget on 20
November.
•
The most highly situated whisky warehouse in
Europe, with its sky bar in Lofsdalen at the top of
Hovärken, 1,125 metres above sea level, was
inaugurated in the beginning of December 2015
•
At the C2C Spirits Cup in Germany, Mackmyra’s
whisky was awarded gold for Svensk Rök and
silver for Svensk Ek and Vinterrök.
EVENTS AFTER THE END OF THE YEAR
•
Sales in the month of January show a continued
increase compared with the previous year.
•
MACK by Mackmyra takes its place in
Systembolaget’s ordinary product range as of
March 2016.
•
As well, Motörhead Whisky will be sold as part of
Systembolaget’s ordinary product range and to
export markets as of March 2016. As a part of
this, Mackmyra sold another issue of 5,000
bottles in January.
•
Mackmyra whisky received five gold and two
silver awards in the 2016 edition of Wizards of
Whisky.
Mackmyra in Systembolaget’s Ordinary Product Range
In March 2016, the flagship products of Svensk Ek, Svensk Rök and Mackmyra
Brukwhisky will be joined in Systembolaget’s ordinary range of products by
the MACK by Mackmyra and by the private brand cooperation Motörhead
Whisky.
3 YEAR-END REPORT 2015
MACKMYRA SVENSK WHISKY AB
meet our customers on site in order to present our
whisky for them to taste. In 2016, we will continue
with our gradual expansion on the selected
markets.
A MESSAGE FROM THE MANAGING
DIRECTOR
Mackmyra increased sales by almost 20 percent in
2015. The number of bottles sold increased and
amounted to 214,000, which is the highest volume
that Mackmyra has sold in a year so far.
The private brand segment is relatively new area
for us and it serves as a tool for using our wellfilled maturation stock in order to increase sales
and thereby to improve cash flow. However, it
proved to be very successful as early as 2015. This
is a pleasant combination of the expertise we have
developed from all the Limited Editions over the
years and the personal aspects that the Reserve
Casks represents. Sweden Rock Whisky and
Motörhead Whisky represent the large volumes,
while we have also made a few smaller editions.
The field has great potential both in Sweden and
in Europe, and it is a prioritised area in our
growth plan for 2016.
MACK is perhaps the most interesting
phenomenon we are bringing to the market right
now. The fact is that approximately 90 percent of
all sales of whisky at Systembolaget is of whisky
costing less than SEK 350. The major sellers,
which are priced at around SEK 300, sell between
100,000 and 700,000 bottles per year at
Systembolaget alone, while at the same time the
segment lacks a Swedish alternative. MACK,
which costs SEK 299 at Systembolaget, already
fills that gap. As of March, MACK will join
Systembolaget’s ordinary product range following
very successful qualifying sales figures in the
fourth quarter via the to-order product range.
The growth is a result of the action plan that was
begun in 2014. The action plan has been
implemented as scheduled and it currently
involves us focusing on sales work in selected
areas, as well as resulting in lower costs and a
sharp focus on cash flow.
200 190 180 170 160 150 140 NUMBER OF BOTTLES SOLD 12 MONTHS ROLLING (THOUSANDS)
220
210
The growth we demonstrated in 2015 is a result of
our strategy within the following areas:
- our prioritised export markets, France,
Germany, Belgium and United Kingdom.
- Private Brand, exclusive bottling in cooperation
with or on behalf of others
- MACK, our new single malt whisky for the wide
demographic of those who like whisky in a lower
price segment
That said, I also want to emphasise that the work
in recent years on efficiency, on forming a tighter
organisation, on economising our cash flow, on
focusing on meeting customers in the field and on
smart cooperation will all continue. Even though
we had a positive cash flow after capital
expenditures last quarter, a lot of work still needs
to be done before we experience substantial
surpluses. In 2015, we have taken Mackmyra to a
point where it realised a respectable level of
growth with controlled costs and thus we have set
the stage for us to be able to continue. Here at
Mackmyra, we also find this work to be pleasant
and inspiring.
Basically, we are focusing on a few selected
markets and meeting our customers at
conventions, events and tastings. This offers many
opportunities for tastings and good responses
regarding flavour, quality and the story. Along
with our innovative concept and product
development, it sets the stage for continued
positive sales trends.
We are doubling sales for the second year in a row
on our prioritised export markets, which currently
represent 20 percent of our bottle sales. Germany
is the engine that has demonstrated very good
growth during the year. In addition to the interest
for such Craft distillers increasing considerably in
Europe, the growth can be explained by
Mackmyra’s wide and innovative offers attracting
the growing number of whisky enthusiasts located
in Europe. Experience from previous investments
shows us that sales do not grow quickly merely
through long-distance activities. These days, we
Magnus Dandanell
Managing Director
Mackmyra Svensk Whisky AB
PS: Do not miss out on a visit to Lofsdalen’s
Skybar this winter. More information can be
found here.
4 YEAR-END REPORT 2015
MACKMYRA SVENSK WHISKY AB
MACKMYRA SVENSK WHISKY
During the fourth quarter, Casks and Experiences
constituted 32 percent (36), Bottles 68 percent (64) of
the net sales excluding alcohol tax.
Mackmyra Svensk Whisky AB (publ) was founded
in 1999 is the first malt whisky manufacturer in
Sweden. The company has successfully launched
the first single malt whisky in the form of personal
30-litre casks and single malt whisky in bottles.
The business operates in Mackmyra Whiskyby
outside of Gävle with its marketing operation in
Stockholm and even through the subsidiaries Mat
och Upplevelser i Kungsbäck AB and Mackmyra
Swedish Whisky GmbH with its headquarters in
Hamburg.
Mackmyra has roughly 6,300 shareholders and
B-shares are listed on Nasdaq First North.
For all of 2015, Casks and Experiences constituted
39 percent (41), Bottles 61 percent (59) of the net sales
excluding alcohol tax.
There is a clear trend showing a growth in the share of
bottle sales. This is largely due to sales of bottles being
more quickly established on foreign markets.
Profits
Gross profits before under-absorptions amounted
to MSEK 10.6 (8.4) for the first quarter, with a
gross profit margin of 53 percent (48), and for
2015 amounted to 32.8 (31.3) with a gross profit
margin of 53 percent (60).
MARKET
In Sweden, Systembolaget’s total sales of single
malt whisky increased in 2015 by approximately
10 percent (2) compared with the previous year.
The trend for New World Whisky, whisky from
non-traditional countries, continues to be
positive. Many new distilleries are starting up all
over the world, and the consumers and media
have taken great interest in them. The gross profits during under-absorption
amounted to MSEK 8.0 (6.6) for the fourth
quarter and amounted to MSEK 21.5 (19.9) for
2015. Profits were then encumbered by expenses
for under-absorption in the amount of MSEK 2.5
(1.8) for the quarter and by MSEK 11.3 (11.4) for
2014 and 2015 due to the low distillation volume.
Thus, it is substantial that the low distillation
volume strikes negatively against gross profits as
profits are encumbered by fixed costs that cannot
reasonably be charged to the value of the
maturation stock with regard to the low
distillation volume, known as under-absorption.
The lower distillation volume contributes to a
substantially better cash flow, but it has a negative
effect on earnings when the fixed manufacturing
costs cannot fully be distributed onto the distilled
volumes.
NET SALES, EARNINGS AND CASH
FLOW
Net sales
SALES PER QUARTER (MSEK) 25.0
20.0
15.0
10.0
5.0
0.0
Other operating costs amounted to MSEK 11.1
(11.0) for the fourth quarter and MSEK 38.9
(42.3) for 2015. The 8 percent lower overhead cost
level for 2015 is a result of the action plan that was
implemented in the early spring of 2014.
Quarter 1
Quarter 2
2013
Quarter 3
2014
Quarter 4
Operating profits before depreciation and underabsorption, that reflect the underlying
profitability, have improved and amounted to
MSEK -0.2 (-0.4) for the fourth quarter and
MSEK -4.4 (9.7) for all of 2015.
2015
Whisky sales experience considerable seasonal variations. For
Mackmyra, the second and fourth quarters have historically
been stronger than the first and third quarter; however, these
variations have been evened out in 2015.
Operating profits for the fourth quarter amounted
to MSEK -3.1 (-4.4), which is due to the improved
gross profits. Operating profits for 2015 improved
by MSEK 5,1 through better gross profits and
lower operating costs, and amounted to
MSEK -17.3 (-22.4).
Net sales excluding alcohol tax amounted to
MSEK 19.8 (17.4) during the quarter, which was
an increase of 14 percent compared with the
previous year.
Earnings after tax amounted to MSEK -5.0 (-8.0)
for the fourth quarter and amounted to
MSEK -26.1 (-32.4) for 2015.
Net sales excluding alcohol tax increased in 2015
by 19 percent to MSEK 62.1 (52.1).
5 YEAR-END REPORT 2015
MACKMYRA SVENSK WHISKY AB
Cash Flow
The number of bottles sold amounted to 83,500
(55,500) during the fourth quarter, which was an
increase of 50 percent compared with the previous
year. In 2015, the number of bottles sold increased
by 26 percent to 214,000 (169,500).
Cash flow after capital expenditures was positive
for the fourth quarter and amounted to MSEK 3.6
(-2.4). Cash flow after capital expenditures for
2015 amounted to MSEK -7.0 (-27.0), which was
an improvement of MSEK 20.0 compared with the
previous year.
Full Year 2015
The improvement of the cash flow after capital
expenditures from 2013-2015 is shown below.
MACK by Mackmyra and products within the
private brand segment, such as Motörhead
Whisky, are essential measures for turning around
the cash flow.
5.0
0.0
-5.0
-10.0
CASH FLOW AFTER CAPITAL EXPENDITURES (MSEK) -15.0
-20.0
Sales of bottles in 2015 increased by 25 percent of
MSEK 7.5 compared with the previous years and
the number of bottles sold increased 26 percent.
The number of bottles sold, 214,000, thereby
reached a historic level in 2015.
Quarter 1
Quarter 2
2013
Quarter 3
2014
Quarter 4
2015
The increase in sales for 2015 is connected with:
BOTTLES
The majority of Mackmyra’s sales take place in
Scandinavia, as well as within Travel Retail and in
border shopping around the Baltic Sea. Mackmyra
has concentrated its own marketing activities to
these markets and the prioritised export markets
in Germany, France, Belgium and the United
Kingdom. Other export markets are managed by
external cooperative partners and distributors.
•
Mackmyra’s prioritised export markets
•
Systembolaget
•
New products
•
Private brand and cooperation
Mackmyra’s prioritised export markets
Sales to the prioritised export markets increased
by MSEK 3.7 to approximately MSEK 7.0 in 2015,
which is more than double the figures for 2014.
This means that sales to these markets, where
sales to Germany have done the most, together
represented 19 percent (11) of total bottle sales for
2015.
Sales of Bottles increased during the fourth
quarter by 20 percent to MSEK 13.4 (11.1). During
2015, sales increased by 25 percent to
MSEK 37.5 (MSEK 30.0).
6 YEAR-END REPORT 2015
MACKMYRA SVENSK WHISKY AB
Upon selling to Systembolaget, MACK by
Mackmyra has lower margins than do Mackmyra’s
other products, but it improved the opportunities
to increase sales volumes and further to improve
cash flow.
Systembolaget
Sales to Systembolaget increased by
10 percent in 2015. The increase is to a great
degree attributable to Svensk Ek, Mackmyra
Brukswhisky, the most recent releases of seasonal
whisky and the sales of MACK by Mackmyra in
the fourth quarter.
Private brand and cooperation
In the past year, Mackmyra has improved the
offering within the private brand segment, which
constituted MSEK 2.5 of the year’s increase in
sales. The sales pertain mainly to Motörhead
Whisky and Sweden Rock Edition that were
mainly sold at Systembolaget.
New products
During the year, Svensk Ek has replaced Den
Första Utgåvan (The First Edition) in Mackmyra’s
regular product range and is sold in a new
packaging / gift box. During the year, Svensk Ek
was upgraded to containing 10 percent (previously
5 percent) of whisky stored in Swedish oak casks,
which produces a more powerful and spicier
flavour.
On 1 October 2015, Mackmyra introduced MACK
to Systembolaget’s to-order product range. The
sale price at Systembolaget is SEK 299.
Motörhead Whisky, which is sold to an external
distributor, will find its place among
Systembolaget’s regular product range as of 1
March and also be sold on export markets.
In addition, a number of smaller bottlings have
been sold via Systembolaget during the year, for
example to Peking Fanz in Norrköping in order to
celebrate its 2015 Swedish football championship.
The Fourth Quarter
The increased sales in the quarter are attributable
to Systembolaget, private brand and to the
prioritised export markets. Sales to the prioritised
export markets continue to increase and they
constituted 25 percent of total bottle sales during
the quarter. During the fourth quarter, Mackmyra
has strengthened the organisation with another
area sales manager in Germany.
MACK by Mackmyra is a single malt whisky made
from Swedish ingredients in Mackmyra’s
traditional and hand crafted way.
With MACK by Mackmyra, Mackmyra is taking a
strategic step in the price segment where the
majority of the volumes of whisky are sold today.
Only in Sweden a total of about 9 million bottles
per year of all whiskey (malt, bourbon, blended,
rye, etc.) are sold at Systembolaget. Up to
90 percent of the whisky sold in Sweden today
consists of whisky selling for up to SEK 350 per
bottle. This price segment is currently dominated
by some twenty brands each sold annually in
volumes of about 100,000 to 700,000 bottles.
Among the top sellers around SEK 300 per bottle
are classics such as Famous Grouse, Tullamore
Dew, Jameson, Glen Grant and Jack Daniels.
Mack by Mackmyra challenge the segment with
the first Swedish alternative.
Mackmyra’s perennial products such as Svensk
Ek, Mackmyra Brukswhisky and Svensk Rök
showed clear increases in volumes during the
quarter.
MACK by Mackmyra, which was launched onto
Systembolaget’s to-order product range during the
quarter, has experienced good sales volumes.
MACK by Mackmyra takes its place in
Systembolaget’s ordinary product range as of
March 2016.
7 YEAR-END REPORT 2015
MACKMYRA SVENSK WHISKY AB
in Europe and featuring a sky bar, was
inaugurated in the beginning of 2015.
The establishment, which is a cooperation with
Lofsdalen Fjällanläggningar, offers opportunities
for Mackmyra to increase its target audience
geographically through local cooperation, and also
by supplementing the winter and summer season
with an attractive selection of cask and whisky
experiences.
Sales of the seasonal edition, Vinterrök, which was
launched at Systembolaget and on some of
Mackmyra’s export markets during the quarter,
showed sales volumes at the level of the 2014
winter edition.
The Special Cask sales campaign was carried out
during the fourth quarter. In the Special Cask,
three of Mackmyra’s most popular flavours are
combined in one and the same cask: Svensk ek,
Amerikansk ek and Olorosvin.
CASKS AND EXPERIENCES
10.0
8.0
6.0
4.0
2.0
0.0
As a step toward further increasing sales, the
organisation was strengthened by yet another
seller in southern Sweden during the fourth
quarter.
SALES, CASKS AND EXPERIENCES (MSEK) Quarter 1
Quarter 2
2013
Quarter 3
2014
Quarter 4
Even during 2015, Mackmyra put out large
volumes to the Swedish market, approximately
75,000 reserve bottles (75,000), of Mackmyra’s
best whisky through the supply of bottles from
previously sold customer casks. This can
temporarily meet the demand for Mackmyra’s
ordinary bottles at Systembolaget, but it continues
to be well distributed in the somewhat longer
terms when it is offered to friends and
acquaintances. At the same time, the high levels of
reserve bottles help slowly to increase the sales of
Mackmyra’s regular bottles at Systembolaget.
2015
Mackmyra’s visitor centre in Mackmyra
Whiskyby, just like before, offers visits, whisky
tastings, distillery and warehouse tours and
conferences. Mackmyra is targeted toward private
individuals and companies. Mackmyra’s visitor
centre plays an important part in supporting the
marketing of Mackmyra’s whisky experiences
regarding both bottles and casks.
Fourth quarter sales of Casks and Experiences
amounted to MSEK 6.4 (6.3), which was an
increase of 2 percent compared with the previous
year.
During 2015, sales increased by 11 percent to
MSEK 24.4 (21.9).
One important success factor behind the increased
sales in casks was the year’s co-founder campaign,
which was also associated with the whisky
warehouse established in Lofsdalen at the top of
Hovärken, 1,125 metres above sea level. The
warehouse, which is the highest whisky warehouse
8 YEAR-END REPORT 2015
MACKMYRA SVENSK WHISKY AB
AWARDS AND RECOGNITIONS
Dominic Roskrow commented on the distinctions
on his blog: ”Sweden can make claim to being the
world’s best New World Whisky nation after
winning the clash of the European titans.”
Appointments and prices are an important part of
marketing and a strength in discussions with
international partners. The quality on Mackmyra
whisky continues to get attention both
internationally and in Sweden.
PRODUCTION
DISTILLATION
Stockholm Beer and Whisky Festival
Gold: Mackmyra Reserve Elegant Bourbon and
Mackmyra Reserve Prestored Sherry
Silver: Mackmyra Sommartid
Bronze: Mackmyra Svensk Ek
During the quarter, approximately 23,000 bottles
(30,000) were distilled, which means that
60,000 bottles (78,000) were distilled in 2015.
The low distillation rate is temporary, and is an
important part of the ongoing action plan to
achieve a neutral cash flow. The supply capacity
for finished whisky is secure thanks to the
maturation warehouses being well filed.
C2C Spirits Cup, Germany
Mackmyra plans gradually to increase the pace of
distillation in 2016-2017.
In October, Mackmyra took part in the C2C Spirits
Cup in Germany and won three medals:
MATURITY WAREHOUSING
In October, Mackmyra was awarded four medals
at the Stockholm Beer and Whisky Festival:
The maturity warehouse’s book value decreased in
value during the quarter by MSEK 0.2 to a total of
MSEK 171.4 as of 31 December 2015. The maturity
warehouse’s book value includes, like last year, the
costs for maturity warehousing.
Gold: Svensk Rök
Silver: Svensk Ek and Vinterrök
The maturity warehouse was valued at the lower
value between the manufacturing cost and the net
sales value as of the balance sheet date.
Manufacturing costs include the costs for
warehousing during the period until the moment
the whisky is mature enough for sale.
The competition was carried out as a blind test by
consumers and over 75 kinds of whisky took part
among the various classics.
Wizards of Whisky Awards 2016
Mackmyra whisky received five gold and two
silver awards in the 2016 edition of Wizards of
Whisky.
Having finished whisky of the correct age and
recipe mix in sufficient volumes is a crucial
condition necessary in order to increase sales in a
long-term perspective. The maturity warehouse
that has been built up over several years allows
Mackmyra today to adapt the manufacturing to a
higher degree in accordance with the sales growth
trends without jeopardising future delivery
capacity.
Gold
Mackmyra Reserve Black Cask 42.3% Sweden
Mackmyra Moment Fenix 45.5% Sweden
Mackmyra Vinterrök 46.1%, Sweden
Mackmyra Reserve Special Oak 51.2%, Sweden
Mackmyra Blomstertid 46.1% Sweden
Approximately 30 percent of Mackmyra’s total
maturity warehouse consists of whisky having
been stored from five to ten years. This means
that Mackmyra currently has a high supply
capacity, even of somewhat older whisky.
Silver
Mackmyra Sommartid 46.1% Sweden
Mackmyra Svensk Ek 46%, Sweden
9 YEAR-END REPORT 2015
MACKMYRA SVENSK WHISKY AB
FINANCIAL INFORMATION
The subscription time ended on 25 June 2015 and
the preferential issue was subscribed for
88 percent and brought Mackmyra MSEK 9.8
before issue expenses totalling MSEK 0.9. Issue
funds were obtained in July of 2015.
STAFF AND ORGANISATION
During the fourth quarter, the group have an
average of 35 full-time employees (36). The
average number of full-time employees for 2015
amounted to 35 (39) people.
The business are inherently capital intensive and
liquidity is sensitive to variations insales. Both the
Board and the management have therefore highly
focused on financing issues and capital
requirements.
Corporate administration consists of a CEO, CFO,
sales and marketing director, master blender and
a supply manager.
As of the balance sheet date, long-term liabilities
amounted to MSEK 174.0 compared with MSEK
173.8 as of 31 December 2014, of which MSEK 3.8
(6.3) pertained to bank overdraft facilities utilised
and MSEK 12.7 (14.3) pertained to interest-free
liabilities attributable to loans from the company’s
cask owners.
What follows is the trend concerning the average
number of full-time employees per quarter.
70 AVERAGE NUMBER OF EMPLOYEES 60 50 40 Bank overdraft capacity amounts to MSEK 10.0
(10.0).
20 EQUITY
30 10 0 Quarter 1 Quarter 2 2013 Quarter 3 2014 During the year, the implemented preferential
issues increased the number of shares from
8,050,792 shares to 9,045,924 shares. Share
capital thereby increased from 8,052,792 Swedish
crowns to 9,045,924 Swedish crowns. The issue
was registered with the Swedish Companies
Registration Office on 16 July 2015.
Quarter 4 2015 CAPITAL EXPENDITURES
Capital expenditures in 2015 amounted to
MSEK 1,8 (2.2) of which MSEK 0.4 (0.9) were
made in the fourth quarter, and pertained to
capital expenditures on casks for maturity
warehousing of whisky, as well as on IT systems.
RISKS AND UNCERTAINTIES
For a description of the risks and uncertainties,
please refer to Mackmyra’s Annual Report for
2014, page 26.
CASH FLOW
SHARES
Cash flow from the ongoing business operation
in the fourth quarter amounted to MSEK -1.2
(-3.5). Change in working capital amounted to
MSEK 5.2 (2.0), of which the change in the
inventory constituted MSEK 0.6 (2.7). Cash flow
to capital expenditures was MSEK -0.4 (-0.9)
Cash flow from financing amounted to
MSEK -0.1 (-0.1) Cash flow improved in the fourth
quarter by MSEK 6.0 and amounted to MSEK 3.6
(-2.4).
Shares are listed on First North. The shares’
closing rate as of 30 December 2015 was
SEK 8.95, compared with SEK 10.45 as of
30 September 2015. During the quarter,
336,899 shares were turned over, compared with
546,111 shares during the corresponding period in
the previous year. In total, 1,413,256 (2,366,064)
shares were turned over in 2015.
The shares’ price trend for 2015 is shown below.
LIQUIDITY AND FINANCING
As of the balance sheet date, cash and cash
equivalents amounted to MSEK 6.0 compared
with MSEK 2.1 as of 31 December 2014. Nonutilised bank overdraft facility amounted to MSEK
6.2 compared with MSEK 3.7 as of 31 December
2014.
In order to improve the company’s financial
position, the Annual General Meeting decided on
30 May 2015 to implement a preferential issue.
DIVIDEN
The board intended to recommend to the Annual
General Meeting that no dividends be paid.
10 YEAR-END REPORT 2015
MACKMYRA SVENSK WHISKY AB
ACCOUNTING PRINCIPLES
Description of the accounting principled applied,
please refer to the annual report for 2014. All the
information in this quarterly report pertains to the
group, which consists of Mackmyra Svensk
Whisky AB and the wholly owned subsidiaries Mat
och Upplevelser i Kungsbäck AB, as well as
Mackmyra Swedish Whisky GmbH.
This interim report has been prepared with the
application of the Annual Accounts Act and the
Swedish Accounting Standards Board's General
Guidelines BFNAR 2012:1 Annual Reports and
Consolidated Statements (K3). The same
accounting principles have been applied as in the
annual report for 2014. For a more exhaustive
The above list of owners reflects the ownership structure as of 31 December 2015.
* The founder group consists of the eight founders (Annika Berg, Jonas Berg, Astrid Dandanell,
Magnus Dandanell, Jennie Kastengren, Carl-Johan Kastengren, Rikard Lundborg and
Malin Lövemark), Spiritum Spritaktiebolag AB, as well as the Gillesvik AB group.
11 YEAR-END REPORT 2015
MACKMYRA SVENSK WHISKY AB
FINANCIAL REPORTS
INCOME STATEMENTS
INCOME STATEMENT (1000 SEK)
Net sales
Minus: Alcohol tax
2015
2014
2015
2014
Oct - Dec Oct - Dec Full year Full year
29,379
23,324
81,675
68,067
-9,593
-5,950
-19,593
-15,979
Net sales excluding alcohol tax
19,786
17,375
62,082
52,089
Cost of goods sold
Under-absorption
-9,218
-2,520
-9,091
-1,707
-29,233
-11,327
-20,753
-11,390
Gross profit
8,047
6,576
21,522
19,945
Other operating expenses
Sales expenses
Administration costs
-7,611
-3,518
-7,139
-3,825
-24,127
-14,735
-26,631
-15,682
Operating profit
-3,082
-4,388
-17,341
-22,368
Net financial items
-1,769
-2,003
-8,643
-8,486
-4,851
-6,391
-25,984
-30,854
-123
-1,566
-123
-1,566
-4,974
-7,957
-26,106
-32,420
Earnings after financial items
Tax
Earnings after tax
12 YEAR-END REPORT 2015
MACKMYRA SVENSK WHISKY AB
BALANCE SHEETS
BALANCE SHEETS (1000 SEK)
31 Dec 2015
31 Dec 2014
ASSETS
NON-CURRENT ASSETS
121,195
131,320
Inventory
184,347
186,948
Other current assets
20,096
21,801
CURRENT ASSETS
Cash and bank
5,950
2,105
210,393
210,853
331,588
342,173
EQUITY
119,074
136,165
LONG-TERM LIABLITIES AND PROVISIONS
178,375
175,759
34,139
30,250
331,588
342,173
TOTAL ASSETS
EQUITY AND LIABILITIES
SHORT-TERM LIABILITIES
TOTAL EQUITY AND LIABILITIES
CASH FLOW ANALYSES
CASH FLOW (1000 SEK)
2015
Oct Dec
2014
Oct Dec
Cash flow from operating activities
-1,190
-3,487
602
4,589
2,711
-680
2,600
5,594
-1,681
-3,520
4,001
-1,456
-5,147
-24,791
-414
-939
-1,819
-2,196
3,587
-2,395
-100
-94
10,811
25,172
Cash flow for the financial period
3,487
-2,489
3,845
-1,815
Cash and cash equivalents upon the beginning of the period
Cash and cash equivalents at the end of the period
2,464
5,950
4,594
2,105
2,105
5,950
3,921
2,105
Change in working capital
Change in inventory
Change in other working capital
Cash flow after changes in working capital
Cash flow to capital expenditures
Cash flow after capital expenditures
Cash flow from financing
13 2015
Full
year
2014
Full
year
-13,341 -19,590
-6,966 -26,987
YEAR-END REPORT 2015
MACKMYRA SVENSK WHISKY AB
CHANGE IN EQUITY
1000 SEK
Equity at the beginning of the period
New share issue
Issue expenses
Convertible bonds, the value of the conversion rights
Translation difference
Profits for the year
Equity at the end of the period
14 2015
136,165
2014
148,620
9,846
-860
1,615
30
-26,106
22,007
-1,919
-123
-32,420
120,689
136,165
YEAR-END REPORT 2015
MACKMYRA SVENSK WHISKY AB
KEY RATIOS
2015
Oct - Dec
2014
Oct - Dec
2015
Full year
2014
Full year
Net sales excluding alcohol tax, MSEK
19.8
17.4
62.1
52.1
Growth in sales excluding alcohol tax
14%
-20%
19%
-19%
13.4
11.1
37.5
30.0
6.4
6.3
24.3
21.9
Gross profits before under-absorption, MSEK
Gross profit margin before under-absorption, percent
10.6
53%
8.4
48%
32.8
53%
31.3
60%
Minus: under-absorption
-2.5
-1.8
-11.3
-11.4
Gross profits, MSEK
8.0
6.6
21.5
19.9
Gross profit margin, percent
41%
38%
35%
38%
Operating profits before depreciations (EBITDA) and
under-absorption, MSEK
-0.2
-2.4
-4.4
-9.7
Key ratios
Sales, Bottles, MSEK
Sales, Casks and Experiences, MSEK
Operating profits, MSEK
-3.1
-4.4
-17.3
-22.4
Interest expenses
-1.8
-2.0
-8.6
-8.5
Tax
-0.1
-1.6
-0.1
-1.6
Earnings after tax
-5.0
-8.0
-26.1
-32.4
5.2
3.5
0.4
-2.4
-2.5
0.9
-5.4
3.8
1.8
-27.0
-1.8
2.1
171.4
173.1
171.4
173.1
146.7
159.4
146.7
159.4
95%
91%
95%
91%
-1.7
-2.6
-2.0
-2.6
Equity, MSEK
120.7
136.2
120.7
136.2
Equity per share, SEK
13.34
16.71
36%
40%
13.34
36%
16.71
40%
Number of shares before full dilution
9,045,924
8,150,792
9,045,924
8,150,792
Number of shares after full dilution
9,946,521
8,251,389
9,946,521
8,251,389
Basic earnings per share, SEK
-0.55
-0.98
-3.19
-4.90
Diluted earnings per share, SEK
-0.55
-0.98
-3.19
-4.90
Average number of shares before full dilution
9,045,924
6,622,519
8,175,657
6,622,519
Average number of shares after full dilution
9,946,521
6,724,116
8,942,920
6,724,116
35
36
35
39
Cash flow after capital expenditures, MSEK
Cash flow, MSEK
Capital expenditures, MSEK
Maturity warehouse, book value, MSEK
Financial net liability excluding convertible debt
instruments, MSEK
Quick ratio, percent
Interest coverage ratio, times
Equity ratio, percent
Average number of employees
This quarterly report has not been subject to examination by the company’s auditor.
15 YEAR-END REPORT 2015
MACKMYRA SVENSK WHISKY AB
FINANCIAL CALENDAR,
GLOSSARY AND DEFINITIONS
DATE OF PUBLICATION OF FINANCIAL
INFORMATION:
Financial net liability excluding
convertible debt instruments
Interest-bearing liabilities excluding convertible
debt instrument - cash and bank balances
8 April 2016 Annual Report for 2015
12 May 2016 Quarterly Report Jan-Mar 2016
14 May 2016 Annual General Meeting
25 August 2016 Quarterly Report Apr-Jun 2016
16 November 2016 Quarterly Report Jul-Sep
2016
Equity ratio (%)
Equity divided by the balance sheet total.
GLOSSARY AND DEFINITIONS
Return on equity (%)
Earnings after tax divided by average equity.
Bottle
700 ml raw spirits or whisky estimated to have
an alcoholic concentration of at least 40 percent
and which is distributed and sold via traditional
channels.
Interest coverage ratio (times)
Earnings before interest expenses divided by
interest expenses.
Earnings per share (SEK)
Earnings after tax divided by the average
number of shares during the period.
Cask
Personal whisky cask ordered and
manufactured as per customer order. Delivered
after an average maturity warehousing of five
years in approximately 48 whisky bottles of
500 ml.
ADDRESSES
Angle’s share
Approximately three percent of the whisky
evaporates out of the oak cask each year during
storage. This is known as the Angel’s share.
Mackmyra Svensk Whisky AB (publ)
Corp. ID no. 55667-4610
Mackmyra Whiskyby
Kolonnvägen 2
802 67 Gävle
Gross profit margin (%)
Gross profits divided by net sales.
Telephone: +46 (0) 26 541 880
Fax: +46 (0) 26 541 881
Operating margin (%)
Operating profits divided by net sales.
E-mail: [email protected]
Home page: www.mackmyra.se,
www.mackmyra.com
Quick ratio
Total of short-term receivables, cash and cash
equivalents and non-utilised bank overdraft
facility divided by short-term liabilities.
CERTIFIED ADVISOR
Erik Penser Bankaktiebolag
Box 7405
103 91 Stockholm
Visiting address: Biblioteksgatan 9
Telephone: 08 – 463 80 00
E-mail: [email protected]
Home page: www.penser.se
16