Nordic drinks group Anora has reported a 6.0% decline in net sales n the third quarter of its financial year, to €162.7 million.
The group said that sales in its key markets declined by 'more than previously forecasted' in September, with sales exacerbated by new legislation permitting the sale of alcoholic beverages containing up to 8% ABV in grocery stores in Finland.
EBITDA for the third quarter came in at €15.3 million, down from €28.9 million in the corresponding period the previous year, however that period had seen a one-off capital gain from the divestment of the Larsen business.
January to September Performance
In the period from January to September, Anora reported that net sales were down 5.5% to €486.7 million, while EBITDA of €38 million was 16.7% lower than the year-ago period.
“During the third quarter, we continued to improve the marginality of our beverage business and strengthen the balance sheet by increasing the share of margin accretive businesses as well as focusing on pricing and revenue management, stable operating expenses and net working capital reduction," commented CEO Jacek Pastuszka.
"We also continued to invest in our brands, to build our performance over the long-term. As a result, both Wine and Spirits improved their respective gross margins."
The net sales decline in the third quarter was largely driven by lower volume sales, particularly in the Wine segment, however, the group did unveil a number of products specifically tailored to Finnish grocery stores, to take advantage of the legislative changes.
In Spirits, Anora reported net sales growth in Sweden, however sales declined in all other markets, it said. Lastly, its Industrial segment saw net sales negatively impacted by decreased ethanol and side product sales prices and production volumes.
Improving Margins
"We will maintain in mid-term our focus on improving the marginality of our beverage business through active mix and revenue management," Pastuszka added. "We also aim to strengthen our cash position and balance sheet by reducing working capital and improving inventory turnover. We seek to restore organic net sales growth in the Wine and Spirits segments by concentrating our efforts on the largest brands and partnerships.
"I am convinced that these actions and the progress achieved so far will allow us to get back on track in executing Anora’s ambitious transformation strategy and deliver on our long-term financial targets.”
