Financial results 2014/2015. Strategy and development perspectives

Transcription

1 Financial results 2014/2015 Strategy and development perspectives Warsaw, September

2 Agenda Strategy of the AMBRA Group Wine market in Poland Financial results and KPIs for 2014/2015 Development project CYDR LUBELSKI Business objectives for 2015/2016 2

3 Get to know AMBRA AMBRA Group is a leading manufacturer, importer and distributor of wines in the Central-Eastern Europe. Poland is the main operating market for AMBRA, where the Company is a leader of the constantly growing wine segment. Strong brands are main source of the Group s growth - CIN&CIN, DORATO, EL SOL, FRESCO, PICCOLO, PLISKA, CYDR LUBELSKI are leaders in the major categories of the market. The Group operates as well in the Czech Republic, Slovakia and Romania. 3

4 Strategy of the AMBRA Group Increase of the value for shareholders through : Optimal use of the Polish wine market development potential Focus on development of well-known and strong brands - CIN&CIN, EL SOL, DORATO, CYDR LUBELSKI Development of premium distribution channels: HoReCa and Retail Market development in all growing market segments, such as cider, brandy, ready-to-drink, premium vodka Operating cash flow increase and consistent policy of growing dividend

5 Mission and vision of AMBRA Mission We enrich life and deliver pleasure. Our brands accompany our consumers both every day and special moments. Wizja We want to dynamically increase the value of our company, be a leader in the growing market in all significant market segments and distribution channels. 5

6 Agenda Strategy of the AMBRA Group Wine market in Poland Financial results and KPIs for 2014/2015 Development project CYDR LUBELSKI Business objectives for 2015/2016 6

7 Wine market in Poland 1,79 1,86 2,00 2,06 2,10 2,18 +5,2% +4,1% +7,9% +3,0% +2,0% +4,0% forecast Forecasted growth of the wine market in Poland in 2015 amounts to 4% - slightly over 2 last years. No increase of the wine market, except for discounters. Source: AMBRA S.A. based on the AC Nielsen data, wine market in Poland (sales volume) 7

8 Wine market in Poland structure of trade In recent years the share of discounters in the wine market increased to 35% at the expense of both traditional trade as well as hyper- and supermarkets. Source: AMBRA S.A. based on the AC Nielsen data, wine market in Poland (sales revenue) 8

9 Wine market in Poland structure of categories 10% 5% 0% 6,2% 6,4% 3,7% 2,2% 2,1% 0,4% forecast -5% -10% still sparkling -6,5% -7,2% -15% aperitif -12,0% Sales of still wines constantly grows, while sales of aperitif wines declines strongly in the last two years. Sales of sparkling wines remains almost unchanged. Source: AMBRA S.A. based on the AC Nielsen data, wine market in Poland (sales revenue) 9

10 Agenda Strategy of the AMBRA Group Wine market in Poland Financial results and KPIs for 2014/2015 Development project CYDR LUBELSKI Business assumptions for 2015/

11 KPIs 2014/2015 KPI FY 2014/2015 FY 2014/2015 change [%] Sales volume [million average bottles] 64,9 60,3 +7,7% Net sales revenue [PLN million] 396,9 393,2 +0,9% Margin on sales [PLN million] 175,8 171,3 +2,7% Margin on sales [%] 44,3% 43,6% +0,7%p. Gross profit on sales [PLN million] 135,4 132,2 +2,4% Gross profit on sales % 34,1% 33,6% +0,5%p. Profit on sales 27,6 31,3-11,8% EBIT [PLN million] 34,2 30,2 +13,2% Net profit attributable to owners of the parent company [PLN million] 19,0 26,1-27,0% Cash flows from operating activities [PLN million] 56,8 30,3 +87,6% Total assets [PLN million] 395,3 419,0-5,6% Net liabilities from loans and borrowings [PLN million] 44,2 85,8-48,6 11

12 KPIs 2014/2015 Increase of sales revenue by 0,9% primarily attributable to very good development of the CYDR LUBELSKI (apple cider) sales. Significant decrease in sales of aperitif and sparkling wines, primarily in the discounter channel. Threefold increase of sales of the CYDR LUBELSKI. Increase of cost of sales of CYDR LUBELSKI resulted in negative contribution to EBIT in the amount of PLN 2,4 million. Increase of sales of fine wines (CENTRUM WINA) and in Romania. Decrease in the Czech Republic. Increase of operating expenses by PLN 6,9 million resulting primarily from the CYDR LUBELSKI distribution growth and salary increase leading to decrease of profit on sales by PLN 3,7 million. One-off items in the amount of PLN 4,6 million (partial disposal of real estate in Romania and a closed winery in the Czech Republic). EBIT higher by PLN 4,0 million as compared with prior year. EBIT without one-off items decreased by PLN 2,1 million. Cash flows from operating expenses amounted to PLN 56,8 million. Debt/EBITDA below 1,0. Decrease of financial expenses owing to favourable financing conditions and lower interest rates. Net profit amounted to PLN 19,0 million. Net profit without one-off items remained on a similar level as in prior year. 12

13 Net sales revenue 2014/2015 [PLN million] +4,2 +4,4 +19,0-3,3 Increase of net sales revenue by PLN 3,7 million (+0,9%) 393,2 396,9 Decrease of aperitif wines in Poland -20,6 Strong growth of CYDR LUBELSKI 2013/2014 AMBRA - core business AMBRA - cider TIM+Vinex CZ+SK RO 2014/2015 Decrease of sparkling wines in the Czech Republic Strong increase of main brands in Romania (ZAREA, FLORENTINO) 13

14 Margin on sales 2014/2015 [PLN million] +1,7 +2,6 Increase of margin by PLN 3,2 million (+2,4%) -0,5-0,6 132,2 135,4 Increase of margin by 0,5 % point as a result of lower purchase prices Lower profitability of margin in TIM i Vinex Increase of sales and lower excise tax in Romania 14

15 EBIT one-off items [PLN million] Impact on EBIT 2014/ /2014 % change EBIT without one-off items 29,6 31,7-6,6% Sales of real estate in Romania 5,4 - Sales of winery in the Czech Republic 0,7-0,9 Other -1,5-0,6 EBIT reported 34,2 30,2 13,2% 15

16 EBIT 2014/2015 [PLN million] +1,5 +3,2-3,0 4,6 EBIT from primary activities decreased by PLN 2,1 million -2,3 34,2 30,2 31,7 Primary activities - PLN 2,1 million Increase of expenses not completely offset by increase of margin Thanks to investments in CYDR LUBELSKI AMBRA is the undisputable leader of the new growing category 16

17 Net profit 2014/2015 [PLN million] +2,1 +3,5 Net profit from primary activities lower by PLN 0,4 million 26,1-10,1-2,5 16,0 15,6 19,0 Decrease of financial expenses offsets almost entirely decrease of EBIT Increased non-controlling interest resulted from improvement of results in Romania Figures above after tax and NCI 17

18 Agenda Strategy of the AMBRA Group Wine market in Poland Financial results and KPIs for 2014/2015 Development project CYDR LUBELSKI Business objectives for 2015/

19 Development project CYDR LUBELSKI Polish beer market represents a potential of about 0,5 billion liters for alternative products, only partially used by existing innovations. We use its potential by building a strong new category: CYDR LUBELSKI is a leader of the rapidly growing cider market. Consumption of wines million litres Consumption of beer and low alcohol beverages approx. 4 billion litres Consumption seeking substitutes million litres 19

20 Development project CYDR LUBELSKI KPI Zmiana [%] Sales volume [litres] 6,3 2,0 +201,0% Net sales revenue [PLN million] 25,4 7,8 +246,7% Market share [%] 48% 47% +1%p. Brand awareness Top of Mind [%] 55% 42% +13%p. Weighted distribution [%] 91% 65% +26%p. 20

21 Development project CYDR LUBELSKI Development perspectives of the cider market: million litres in 5 years - or approx. 0,8% 2,0% of the beer market Consumption in 2014/2015 amounted to 11 million litres. So far only 7% of the population has tried cider! Target consumption can therefore increase up to 10 times! 21

22 Agenda Strategy of the AMBRA Group Wine market in Poland Financial results and KPIs for 2014/2015 Development project CYDR LUBELSKI Business objectives for 2015/

23 Business objectives 2015/2016 Stable sales of wine Further dynamic increase of cider sales Gradual improvement of the CYDR LUBELSKI performance results Slow down of cost increase 23

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