Spirits group Semper idem Underberg AG has reported 3% growth in net sales to €145.2 million in its its financial year 2022/2023.
The company outperformed the market for another year in a row as industry turnover of German spirits companies fell by 2% in 2022, according to data from Nielsen IQ.
Adjusted EBITDA for the period amounted to €11.6 million despite adverse conditions due to inflationary pressure, including decreased consumption and cost increases in energy, raw materials and packaging materials, Underberg AG added.
"In the past few months we have achieved significant increases in product availability and production," CFO Michael Söhlke said in a statement.
The company was also able to "agree on necessary price increases with our partners, especially in the German food trade," according to Thomas Mempel, board member responsible for sales and international business.
"The deals have given us a little breathing room, but we need more leeway, the cost pressure remains high, especially in the energy-intensive procurement of glass," he added.
Annual Highlights
The company's core brands - Underberg and Asbach - recorded double-digit growth in sales in the 2022/2023 financial year.
Underberg, the herbal bitter from Rheinberg, saw growth of 15.9%, while the brandy Asbach from Rüdesheim witnessed growth of 22.5%.
"Our targeted increase in national and international marketing expenses over the past few years is having an effect. Underberg and Asbach are much more visible, which is also noticeable at the POS and in the catering trade," added Söhlke.
The spirits firm also reported a 12.7% increase in international business, with the division accounting for 14.3% of total sales.
Mempel said, "The increasing relevance of our international activities is a significant factor in our strategic direction. After we optimised our sales structures in the USA - our most important target market alongside Scandinavia - in the year before last, we expanded in the Global Travel Retail area in 2022/23."
Outlook
Despite rising energy and raw material prices and the continuing reluctance to buy in Germany, the company believes that Semper idem Underberg AG is well positioned for the current financial year.
The company has extended the contracts of Thomas Mempel (CCO) and Michael Söhlke (CFO) over the long term.
"With the continuity on the management board, we see ourselves well positioned for the coming challenges," explained Prof Dr Tobias Bürgers, chair of the supervisory board.
Semper idem Underberg AG is a family company from Rheinberg on the Lower Rhine involved in the production and distribution of premium spirits.
In addition to the brands Underberg and Asbach, it manufactures St. Hubertus, PITÚ, XUXU, Zwack Unicum and Grasovka as well as Amarula, Southern Comfort, BOLS and Ouzo Plomari.
