Nordic drinks firm Anora Group has reported a 3.1% decline in net sales in the second quarter of its financial year, to €177.1 million.
However, the company improved its profitability, with a comparable EBITDA increase of 16.9% in the quarter, to €15.2 million, driven by higher gross margins in its Wine and Spirits segments.
In the first half of the year, meanwhile, net sales fell by 5.3% to €324.0 million, while comparable EBITDA grew by 15.2% to €24.1 million, reflecting cost efficiencies, price increases, and favourable product mix, the company sad.
Anora also reported a significant reduction in net debt, with a rolling 12-month net debt/comparable EBITDA ratio of 2.8, down from 3.9 the previous year.
'Stayed On Course'
“During the second quarter, we stayed firmly on the course of improving our profitability and strengthening the balance sheet by increasing the share of margin accretive businesses, price increases, cost efficiencies and net working capital reduction," commented Jacek Pastuszka, Anora chief executive. Also, lower raw material prices supported our performance."
The group said that its Wine segment showed strong performance, particularly in Finland, where new products were launched in response to changes in alcohol legislation. Elsewhere, its Spirits segment also saw growth, although challenges remain in certain markets, including Finland, Baltics and Global Travel Retail.
Looking ahead, Anora expects continued challenges in its key markets due to economic conditions. The company anticipates a temporary decline in Finnish monopoly sales due to legislative changes but expects this to be offset by sales in the grocery channel.
For 2024, Anora has provided guidance for a comparable EBITDA of €75 million to €85 million, up from €68.2 million in 2023.
Improving Overall Profitability
"We remain focused on improving the marginality of our beverage business and overall profitability of Anora business through active mix and revenue management and on strengthening our cash position and balance sheet via reduced working capital and improved inventory turns," said Pastuszka.
"We seek to restore organic net sales growth in the Wine and Spirits segments by focusing our efforts on the largest brands and partnerships. I am convinced that these actions and the progress achieved so far in 2024 will allow us to execute on our post-merger transformation strategy and deliver on our long-term financial targets.”
Anora's next interim report, covering January-September 2024, will be released on 7 November 2024.
