Anora Group Plc’s Financial Statement Release for 1 January - 31 December 2024: Comparable EBITDA improved in Q4 driven by strong performance in the Wine segment

Anora Group Plc Financial Statement Release 12 February 2025 at 8:30 am EET

Anora Group Plc’s Financial Statement Release for 1 January - 31 December 2024: Comparable EBITDA improved in Q4 driven by strong performance in the Wine segment

This release is a summary of Anora Group Plc's Financial Statement Release January–December 2024. The complete report is attached to this release and is also available on the company website at: www.anora.com/en/investors

Q4 2024 in brief

• Net sales were EUR 205.3 (211.2) million, down by 2.8%.

• Comparable EBITDA was EUR 28.9 (27.1) million, or 14.1% (12.8%) of net sales, up by 6.7%.

• EBITDA was 23.3 (21.9) million, or 11.4% (10.4%) of net sales, up by 6.4%.

• Net cash flow from operating activities was EUR 101.3 (100.1) million.

• Earnings per share was EUR 0.12 (-0.65).

January–December 2024 in brief

• Net sales were EUR 692.0 (726.5) million, down by 4.7%.

• Comparable EBITDA was EUR 68.9 (68.2) million, or 10.0% (9.4%) of net sales, up by 1.0%.

• EBITDA was EUR 61.3 (67.5) million, or 8.9% (9.3%) of net sales, down by 9.2%. The one-off capital gain of EUR 11.6 million from the Larsen divestment was reported under other operating income in 2023.

• Net cash flow from operating activities was EUR 33.2 (135.3) million.

• Earnings per share was EUR 0.16 (-0.59).

• Net debt/comparable EBITDA (rolling 12 months) was 1.8 (2.0).

Dividend proposal

The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.22 per share be paid for the financial year 2024.

Guidance

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

Key figures

CEO Jacek Pastuszka:

“During the period, we progressed well on the mid-term agenda established in late 2023, without losing sight of our long-term ambitions and aspirations. 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. As a result, all our segments improved their gross margins both in the fourth quarter and during the full year in 2024.

In 2024, our operating expenses were below last year’s levels in Wine and Industrial segments. In Spirits, we continued to invest in our biggest brands. For example, we launched 17 new Koskenkorva products, from RTD’s to cream liqueurs. The full-year Group gross margin increased to 42.4% (42.0%). The Group gross profit showed a decline of 3.9% to EUR 293.4 (305.4) million in 2024, partly as the comparative year 2023 was impacted by the one-off capital gain from the Larsen divestment of EUR 11.6 million, which was not allocated to any segment.

Anora revised its comparable EBITDA guidance range down to EUR 65-70 million on 14 October 2024, due to lower volumes in Wine and Spirits segments in September than previously forecasted especially in the monopoly channels. Towards the end of the year this steep decline eased up somewhat, due to seasonal sales picking up for the festive period. For the full year 2024, our comparable EBITDA increased from EUR 68.2 million to EUR 68.9 million and was 10.0 percent of net sales. The Wine segment delivered notable comparable EBITDA growth, while the other segments declined from the previous year.

In the fourth quarter, our comparable EBITDA increased by 6.7 percent and amounted to EUR 28.9 (27.1) million or 14.1 percent of net sales. The comparable EBITDA increased in Wine and Industrial segments from the previous year. We made some additional inventory impairments in Wine and Industrial segments, reported as items affecting comparability. In the Industrial segment, the efficiency improvement programmes successfully increased profitability. Spirits comparable EBITDA declined due to lower net sales and higher other operating expenses compared to the previous year.

Net sales in the fourth quarter declined by 2.8 percent to EUR 205.3 million, primarily due to lower volumes in the Spirits segment. In the Wine segment, Anora regained its overall market leadership in Finland including grocery, due to the successful introduction of up to 8% ABV wines in grocery stores. In the Spirits segment, Sweden delivered net sales growth, while net sales declined in all other Nordic countries. The Industrial segment's net sales was negatively impacted by decreased ethanol and side product sales prices and production volumes, while the contract manufacturing volume improved compared to the previous year. The full year net sales were EUR 692.0 million, showing a decline of 4.7%. The Wine and Spirits segment sales were down due to lower volumes. The Industrial segment’s net sales were negatively impacted by lower sales prices due to declined grain prices, combined with lower production volumes.

At the end of the year our cash and cash equivalents amounted to EUR 181.5 million. Our interest-bearing net debt amounted to EUR 121.6 (137.5) million, while our net interest-bearing debt / comparable EBITDA ratio was 1.8 (2.0). We re-paid our long-term interest-bearing debt by EUR 50.0 million at the end of September, thus lowering our net financial expenses going forward. This also enables our Board of Directors to propose a dividend payment of EUR 0.22 per share for the financial year 2024 to the Annual General Meeting.

As we close the year 2024, I would like to thank our customers, partners, shareholders and employees for their contribution during our journey so far. While I have communicated to the Board of Directors of Anora my wish to retire once the new CEO is nominated, we are sustaining our focus on improving the marginality of our beverage business through active mix and revenue 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 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.”

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).

Board of Directors' proposal for the distribution of distributable funds

According to the financial statements on 31 December 2024, the parent company’s distributable funds amounted to EUR 98.3 million including profit for the period of EUR 12.9 million. There have been no significant changes to the parent company’s financial position after the end of the financial year.

The Board of Directors proposes to the Annual General Meeting to be held on 15 April 2025 that a dividend of EUR 0.22 per share be paid for the financial year 2024.

Anora aims to maintain a stable or increasing dividend with a dividend payout ratio of 50–70% of the result for the period, as defined in the long-term financial target.

Impairment losses

Anora recognised impairment losses of EUR 10.4 million to the value of the parent company’s holdings in Group companies, which did not impact the consolidated financial statement figures, but reduced Anora Group Plc’s distributable funds by equal amount.

Anora’s financial reporting for the year 2025

The Annual Report 2024 including the financial statements, Board of Directors' report, the Corporate Governance statement and the remuneration report will be published in English and Finnish on Anora’s website by the end of week 12/2025.

Anora will publish financial reports in 2025 as follows:

• 7 May 2025: Interim Report for January-March 2025

• 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’s Annual General Meeting (AGM) 2025 is planned to be held on Tuesday 15 April 2025 in Helsinki. The Board of Directors will summon the AGM later.

ANORA GROUP PLC

Further information:

Jacek Pastuszka, CEO

Stein Eriksen, CFO

Contacts:

Milena Hæggström, Director, Investor Relations

tel. +358 40 5581 328

milena.haeggstrom@anora.com

Results presentation:

CEO Jacek Pastuszka and CFO Stein Eriksen will present the report today at 11:00 am EET. 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 144 292 768#

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