Anora Group Plc   Interim report  7 May 2025 at 8:30 am EEST

Anora Group Plc's Interim report for 1 January - 31 March 2025: Comparable EBITDA improved in Spirits and Industrial segments, Wine segment impacted by marketing spend

This release is a summary of Anora Group Plc's Interim report January-March 2025. The complete report is attached to this release and is also available on the company website at: www.anora.com/en/investors

Q1 2025 in brief

• Net sales were EUR 141.4 (146.9) million, down by 3.8%.
• Comparable EBITDA was EUR 8.0 (8.9) million, or 5.7% (6.1%) of net sales, down by 9.6%.
• EBITDA was 8.9 (7.8) million, or 6.3% (5.3%) of net sales, up by 15.0%.
• Net cash flow from operating activities was EUR -75.6 (-44.6) million.
• Earnings per share was EUR -0.03 (-0.03).
• Net debt/comparable EBITDA (rolling 12 months) was 3.1 (2.6).

Guidance

In 2025, Anora's comparable EBITDA is expected to be EUR 70-75 million (2024: EUR 68.9 million). 

Key figures

CEO Kirsi Puntila:

"During the first quarter, we continued focusing on improving the profitability of our beverage business and strengthening 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. As a result, the gross margin increased to 46.0 (43.3) percent of net sales, with improvements in Spirits and Industrial segments.

In the first quarter, our comparable EBITDA decreased by 9.6 percent and amounted to EUR 8.0 (8.9) million or 5.7 (6.1) percent of net sales. The comparable EBITDA increased in Spirits and Industrial segments from the previous year, whereas the Wine segment comparable EBITDA declined. Our operating expenses were fairly in line with last year, but we increased our targeted marketing spend in the Wine segment in order to support strategic growth initiatives in Sweden and to strengthen the retail channel in Finland. As a result of these new launches in targeted wine categories, we have seen our market share increase in these markets during the first quarter. We realised some savings in the Industrial and Spirits segments. In the Industrial segment, the efficiency improvement in supply chain successfully increased profitability. Also, the gain on sale of certain assets in Rajamäki plant improved gross profit by EUR 1.8 million in the Industrial segment. There were also some additional Group-level expenses during the period due to different timing of expenses.

Net sales in the first quarter declined by 3.8 percent to EUR 141.4 million, primarily due to lower volumes in the Spirits and Industrial segments. In the Wine segment, Anora maintained its overall market leadership in Norway, Denmark and Finland including grocery retail, thanks to the successful introduction of up to 8% ABV wines in grocery stores. In the first quarter, we improved our market share also in Sweden. In the Spirits segment, all Nordic markets declined during the first quarter, which was only partially compensated by the growth from the rest of the markets. The Spirits segment net sales decline was explained partly by the timing of Easter. The Industrial segment's net sales decrease was driven by lower volumes and side product sales prices.

At the end of the quarter our cash and cash equivalents amounted to EUR 96.7 million. Our interest-bearing net debt amounted to EUR 208.4 (176.6) million, while our net interest-bearing debt / comparable EBITDA ratio was 3.1 (2.6).

In March 2025, we published our investment in a new, state-of-the-art biomass-boiler at the Koskenkorva Distillery in Finland. This replacement investment will allow the distillery to fully transition to fossil-emissions-free fuels by the end of 2026 in line with our strategy, and help the distillery to achieve its carbon neutrality target, marking a significant step in our sustainability work.  

Looking ahead, we are sustaining our focus on improving the profitability of our beverage business through active mix and revenue management as well as continued cost management. We also aim to further 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 categories, brands and partnerships. I am convinced that these actions will allow us to get back on track in executing our long-term strategy."

Outlook and guidance for 2025

Market outlook

In 2025, the volumes in our key markets are expected to be relatively flat compared to the 2024 levels, while in value terms, the markets are expected to grow slightly.

Guidance

In 2025, Anora's comparable EBITDA is expected to be EUR 70-75 million (2024: EUR 68.9 million).

Anora's financial reporting for the year 2025

Anora will publish financial reports in 2025 as follows:

• 15 August 2025: Half-Year Report for January-June 2025
• 31 October 2025: Interim Report for January-September 2025

Anora applies a silent period of 30 days before the publication of financial reports.

ANORA GROUP PLC

Further information:

Kirsi Puntila, CEO

Stein Eriksen, CFO

Contacts:

Milena Hæggström, Director, Investor Relations

tel. +358 40 5581 328

milena.haeggstrom@anora.com

Results presentation:

CEO Kirsi Puntila and CFO Stein Eriksen will present the report today at 11:00 am EEST. The presentation will be held as a Microsoft Teams Meeting. We recommend that participants join the event using the online meeting option: Join meeting here.

It is also possible to dial-in to the meeting about 5 minutes earlier at the following numbers:

• FI: +358 9 2310 6678
• NO: +47 21 40 41 04
• SE: +46 8 502 428 54
• DK: + 45 32 72 56 80
• UK: +44 20 7660 8309
• US: +1 917-781-4622

Conference ID: 408 274 019#

Q&A

Questions to the management can be sent through the Teams chat.

Presentation material and on-demand recording

The presentation material will be shared in the online meeting and it can be downloaded at: www.anora.com/en/investors. Recording of the presentation will also be available on Anora's website.

Distribution:

Nasdaq Helsinki

Principal media

www.anora.com