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Paris, 27 July 2018
Andrew Highcock appointed CEO of MBWS
Update on discussions with banking partners
Decrease in Q2 2018 net sales
2018 EBITDA Out look
Marie Brizard Wine & Spirits (Euronext : MBWS) today announced the appointment of Andrew Highcock to
the position of Chief Executive Officer, a nd also released the company’s Q2 2018 net sales.
Andrew Highcock named Chief Executive Officer of Marie Brizard Wine & Spirits
Andr ew Highcock is a recognized and highly experienced spirits industry executive . He holds a degree from
Cambridge University, and began his career at Arthur Andersen in the United Kingdom , mov ing from there to
a career in the consumer goods sector when he j oined the Beecham Group. Later, he joined Diageo where he
held several positions, starting with Marketing Director for Central Europe, followed by General Manager of
the Hungarian subsidiary, and finally marketing director of Diageo in France. He then joined Maxxium, first to
manage the southern Europe cluster (France, Spain, Portugal, Italy, Greece and Turkey) and later assumed
the role of President of the company’s Canadian subsidiary. Finally, he joined the SABMiller Group -- the
world’s second larg est brewer – in their Central and Eastern Europe cluster (later acquired by the Japanese
group, Asahi) as General Manager of the Slovakian subsidiary, followed by a role as President of the
Romanian subsidiary, and as President of the Polish subsidiary, his current positio n. He is expected to join
MBWS on 29 th October 2018.
Benoît Hérault, Chairman of the Board and current CEO of MBWS declared, “We have taken the time
necessary to find the executive who will be able to return our Group to a path of profitable growt h, and we
are thus very happy to announce the arrival of Andrew Highcock as CEO of MBWS. Andrew is an executive
who has demonstrated over the course of his career in the beverages and spirits industries his ability to
transform and to driv e growth in the companies that he has led. Andrew’s multi -cultural profile and his
professional successe s in Franc e, in Central and Eastern Europe (in particular, the turnaround of the Asahi
Group’s operations in Poland) , and in North America will be deter minant factors in his new role. His primary
mission will be to define the means and the strategy for returning Marie Brizard Wine & Spirits to profitable
growth.”
Andrew Highcock added: “I am honored to take on the role of Chief Executive Officer of Mar ie Brizard Wine &
Spirits. I am aware of the responsibility this entails vis -à vis the company’s employees, partners, clients and
shareholders, and I look forward to begin ning this new entrepreneurial adventure. I do not under -estimate
the enormity of th e task, but I have great enthusiasm for this project as I am convinced that the Group
possesses significant un der -develop ed potential and assets to win in the market.”
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Marie Brizard Wine & Spirits also announced the appoint ment of Jacques Tierny as an independent non -
executive director of MBWS . Given Mr. Tierny’s skills and experience, the Board unanimously decided to
appoint him President of the Audit committee. Jacques Tierny was successively Deputy CFO of Michelin, CFO
and Executive Deputy C EO of the Casino Groupe, and CFO of Gemalto. The appointment of Mr. Tiern y
follows the resignation for personal reasons of Benoît Ghiot, a member of MBWS’ Board of Directors since 16
September 2014.
Ongoing discussions with banking partners
The renegotiation of some of the terms of financing lines is now very advanced , and as previously stated, the
Group reiterates that it is confident in its ability to finalize the negotiations by end of summer 2018. The
Group will then be in a position to publish its FY 2017 accounts. The FY 2017 EBITDA is in a range of -€11m to
-€12m.
Q2 2018 Net sales
MBWS’ consolidated, non -audited Q2 2018 net sales totaled €10 7.9 m, a decrease of -11.4% compared to Q2
2017 1. The performance of the Branded Business dec lined significantly, by -25. 2%. This performance is a
result of the company’s proactive policy , being carried out primarily in Poland and the United States, to
enable stock levels in the market to return to normal levels . These results also reflect a much lower level of
activity in France during the month of June.
The IFRS 15 accounting standard as it relates to “Revenue from contracts with customers” has been
applicable since 1 st January 2018. Consequently, Marie Brizard Wine & Spirits has publish ed its Q2 2017 and
2018 net sales in keeping with this new accounting standard.
1 All net sales growth rates mentioned in this pre ss release are calculated at constant exchange rates on a like -for -like basis, unless
otherwise stated.
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Q2 2018 Net Sales by Cluster (IFRS 15)
0 In € m Q2 2017
restated
Orga n i c
gro wth
Cu rre n cy
i mp a ct Q2 2018
Org. Growth
(excl.
forex)
Org. Growth
(incl.
forex)
BRANDED BUSINESS 70.0 -17. 7 -0.5 51. 8 -25. 2% -26.0 %
WEMEA 38.6 -4.8 0.0 33.7 -12.5 % -12.5 %
Fra n ce 32.0 -3.6 0.0 28.4 -11.2 % -11.2 %
Re s t o f cluster 6.6 -1.2 0.0 5.4 -18.8 % -18.9 %
CEE 23.2 -10. 7 0.0 12. 5 -46.0 % -46.0 %
Po l a nd 15.8 -9.9 0.0 5.9 -62.8% -62.8 %
Re s t o f cluster 7.4 -0.8 0.0 6.7 -10.2% -10.2%
Americas 7.2 -2.1 -0.5 4.6 -29.1% -36.4 %
Asia Pacific 1.0 0.0 0.0 0.9 -4.7 % -5.6 %
OTHER BUSINESSES 52.8 3.6 -0.3 56.1 6.9 % 6.4 %
So b i eski Trad e 28.0 -0.3 -0.3 27.4 -1.2 % -2.1 %
Pri va te La bel 24.8 3.9 0.0 28.7 15.9% 15.9%
TOTAL MBWS 122.7 -14.0 -0.8 107.9 -11.4 % -12. 1%
Western Europe, Middle East and Africa (WEMEA)
In France, net sales in Q2 2018 reached €28. 4m, a decrease of -11.2 % versus the year ago period. MBWS’ net
sales decreased sharply in June as a result of one -time destocking of spirits carried out by the market’s large
retailers. Net sales in France continued to be affected by the shortage of 2017 vintage rosé wine, which is
expected to continue into H2 2018. According to IRI, the volume of rosé wines from Provence have
decreased -12.3% 2 year -to-date.
In the rest of the WEMEA cluster, net sales totaled €5.4m, a decrease of -18.8%. Although the Group’s
activity stabilized in the United Kingdom, almost all of the decrease in the second quarter in the rest of
WEMEA is attributable to the business in Spain. The deployment of the strategy to reset stock levels, which
began at the start of the year, led MBWS to continue a proc ess of destocking and to increase prices on its
flagship Marie Brizard anisette brand , in order to gradual ly restore the Group’s profitability in th e Spanish
market .
Marie Brizard Wine & Spirits’ H1 2018 net sales in the WEMEA cluster totaled € 58.7 m, a dec rease of -10 .6%.
2 IRI P6 2018 YTD.
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Central and Eastern Europe (CEE)
In Poland , Q2 2018 net sales totaled €5.9 m, a -62.8% decrease versus the year ago period. This sharp decline
is attributable to the proactive policy to reduce stocks, primarily in the traditional trade. Stock levels are now
normalized.
The action plan built around five large initiatives and pr esented on 13 th April of this year, is ongoing as
follows:
Distribution: imp rovement in distribution and visibility in the traditional trade’s principal points of
sale, and acceleration of this strategy over the course of H2 2018.
Organization: the management team of the sales organization is now complete; currently recruiting
sales people and trade marketing staff, to be operational in Q3 2018;
Product positioning: ongoing improvement in product mix, driven by small formats, new flavors of
Krupn ik, and William Peel;
Operations: product ioin testing is ongoing, and the Lancut distillery is expected to be ful ly
operational in Q4 2018;
Processes: finalization of internal control processes, as well as process for managing receivables and
payables.
H1 2018 net sales totaled €8.9m, a -62.5% decrease.
The initiatives taken by MBWS -Poland should enable the gradual return to growth over the course of H2
2018.
In the rest of the CEE cluster, Q2 2018 net sales totaled €6.7m, a decrease of -10 .2% , marking a sequential
improvement versus Q1 2018 . This decline is due primarily to the business in Lithuania, which was impacted
– along with the rest of the spirits market in that country – by the restrictive regulatory framework for the
sale of alcohol. In the rest of CEE, H1 2018 net sal es were € 12.2 m, a -12.0 % decline.
Americas
In the Americas cluster, net sales totaled €4.6m, a decrease of -29.1% . This decline is due to destocking
activities carried out by distributors, particular ly related to the change to new packaging for Sobieski , which
was launched at the very end of Q2 2018 . In H1 2018, net sales in the Americas reached €7. 2m, a decrease of
-27.6%.
Net sales in Brazil continued to be affected by the market’s challenging macroeconomic context.
Asia Pacific
Net sales in the Asia Pacific cluster totalled €0.9m during Q2 2018, a decrease of -4.7% , or €56,000 compared
to a challenging comp in the year ago period (+62. 2% growth in Q2 2017). Nonetheless, MBWS continues to
develop its brands across the cluster. H1 2018 net sales totaled €1.3m in the Asia Pacific cluster .
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Other Businesses
Other Businesses net sales increased by +6.9% to €56. 1m, driven by third party bottling 3 and Private Label
brands (+15 .9%). After strong growth during several quarters, Sobieski Trade ’s net sales totaled €27. 4m, a
slight decrease of -1.2%. H1 2018 net sales for the Other Businesses totaled € 10 1.7m, a +12.6% increase.
Outlook
MBWS net sales decreased sharply in Q1 2018 and Q2 2018. This level of revenue was partially expected,
and is primarily due to a proactive strategy to reduce stock levels held by clients across several of the Group’s
markets. This strategy will enable th e new CEO to assume his new role within the context of a level operating
environment .
The decline in net sales during the first half of the year will affect H1 2018 profitability, which should thus
show a very significant decrease compared to H1 2017. This has been mostly anticipated in the budget that
was revised and approved by the Board of Directors in April 2018.
Starting in H2 2018, MBWS confirms its expectation of a gradual return to growth across all clusters , but this
is not expected to offset the top -line decrease in H1 2018. Consequently, the Group expects that FY2018
EBITD A will be negative, although it should mark an improvement over anticipated FY 2017 EBITDA .
Marie Brizard Wine & Spirits p ro d u ces an d sells a ra nge o f win e and spirits acro ss fo ur ge ographic cl usters: Western Eu ro pe , Mi d d l e
Ea s t & Afri ca, Ce n tral a nd Eastern Eu rop e, th e Americas, a nd As ia -Pacific. MBWS h as distinguish ed i tself for i ts kno w -h o w, th e ra n ge
o f i ts b rands, a nd a lo ng traditio n an d h isto ry o f i nno vation. Fro m th e incep tio n o f Maison Marie Brizard i n Bo rdeaux, Fra nce i n 1755,
to th e l a unch o f Fru its a nd Wine in 2010, MBWS h as su ccessfully d evelo ped a nd a d a p te d i ts b ra n d s to ma ke th e m co n te mp o ra ry
wh i le re specting th eir o rigins. MBWS is co mmitted to p rovid in g va l u e b y o ffe ri n g i ts cu s to me rs b o l d , tru s two rth y, fl a vo rfu l a n d
e xp e rien tial b rands. Th e co mpany h as a b road p o rtfolio o f l ead ing b ran ds in th eir re spective market s egments, most n o tably Wi l l i a m
Pe e l sco tch wh isky, So bieski vo dka, Kru pnik vo d ka, Fruits an d Win e flavo red wine, Ma rie Brizard liqu eurs an d Co gnac Gau ti e r. MBWS
i s l isted o n th e re gulated market o f Eu ron ext Pa ris, Co mpartment B (I SIN co d e FR0000060873, ti cker MBWS) a n d i s i n cl u d e d i n t he
En te rNe xt© P EA-PME 150 i n d e x, a mo n g o th e rs .
Investor Contact
Raquel Lizarraga
ra quel .l i za rra ga@mbws .com
Tél : +33 1 43 91 50
Press Contact
Simon Zaks, Image Sept
s za ks @i ma ge7.fr
Tél : +33 1 53 70 74 63
3 Primarily Pulco
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Annex es
H1 2018 Net Sales by Cluster (IFRS 15)
0 In M€ H1 2017
restated
Orga n i c
gro wth
Cu rre n cy
i mp a ct H1 2018 Org. Growth
(excl. forex)
Org. Growth
(incl. forex)
BRANDED BUSINESS 115.8 -26. 7 -0.8 88.3 -23.0 % -23. 8%
WEMEA 65.7 -7.0 0.0 58.7 -10.6 % -10.6 %
Fra n ce 55.1 -5.1 0.0 50.0 -9.3 % -9.3 %
Re s t o f cluster 10.5 -1.8 0.0 8.7 -17.1 % -17.2 %
CEE 37.3 -16. 3 0.1 21.1 -43. 7% -43. 4%
Po l a nd 23.4 -14.6 0.1 8.9 -62.5 % -62.0 %
Re s t o f cluster 13.9 -1.7 0.0 12. 2 -12.0 % -12.0 %
Americas 11.2 -3.1 -0.9 7.2 -27.6 % -36.0 %
Asia Pacific 1.7 -0.3 0.0 1.3 -19.8 % -20.3 %
OTHER BUSINESSES 89.8 11.3 0.6 101.7 12.6 % 13.3 %
So b i eski Trad e 48.7 4.5 0.6 53.8 9.1 % 10.4 %
Pri va te La bel 41.1 6.9 0.0 47.9 16.7 % 16.7 %
TOTAL MBWS 205.6 -15.3 -0.2 190. 0 -7.5% -7.6%
2017 Net Sales by Cluster and by Quarter (IFRS 15)
0 In M€ Q1 2017
IFRS 1 5 Q2 2017
IFRS 15 Q3 2017
IFRS 15
Q4 2017
IFRS 15
FY 2017
IFRS 15
BRANDED BUSINESS 45.8 69.9 51.1 63.8 230.7
WEMEA 27.1 38.6 30.7 35.3 131.7
Fra n ce 23.2 32.0 25.3 28.4 108.9
Re s t o f cluster 3.9 6.6 5.4 6.9 22. 8
CEE 14.1 23.2 15.1 16.6 69.0
Po l a nd 7.6 15.8 7.8 8.5 39.8
Re s t o f cluster 6.5 7.4 7.3 8.0 29.2
Americas 4.0 7.2 4.4 10.0 25.6
Asia Pacific 0.6 1.0 0.9 1.8 4.4
OTHER BUSINESSES 37.0 52.8 53.3 40.9 184.1
So b i eski Trad e 20.8 28.0 26.8 24.7 100.2
Pri va te La bel 16.3 24.8 26.6 16.2 83.9
TOTAL MBWS 82.8 122.7 104.5 104.7 414.7
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