Communications and Sustainability Director
+358 40 767 0867
Anora Group Plc Stock Exchange Release 25 November 2021 at 8:30 am EET
Anora Interim Report January-September 2021: Strong start for Anora – integration progressing according to plan, solid business performance
The merger of Altia and Arcus to form Anora was completed on 1 September 2021
Pro forma financial information
Q3 2021: net sales EUR 165.0 (160.0) million and comparable EBITDA 30.1 (27.8) million
January-September 2021: net sales EUR 459.4 (431.2) million and comparable EBITDA 70.4 (62.0) million
Q3 2021 compared to Q3 2020
Reported net sales increased by 31.6% to EUR 114.0 (86.6) million; growth in constant currencies 30.7%
The Finland & Exports segment’s net sales were EUR 30.7 (29.8) million
The Scandinavia segment’s net sales were EUR 29.3 (27.4) million; growth in constant currencies 4.0%
Altia Industrial’s net sales were EUR 29.0 (29.4) million
Arcus segment’s net sales were EUR 25.1 (-) million
Comparable EBITDA was EUR 20.2 (14.6) million, 17.7% (16.9%) of net sales
Items affecting comparability were EUR -3.3 (-5.9) million mainly relating to the merger of Altia and Arcus
Reported EBITDA was EUR 16.9 (8.8) million, 14.7% (10.1 %) of net sales
Net cash flow from operating activities was EUR -5.1 (-4.4) million
Net debt / comparable EBITDA (rolling 12 months) was 2.9 (0.7)
January-September 2021 compared to January-September 2020
Reported net sales increased by 15.5% to EUR 272.5 (235.9) million; growth in constant currencies 14.0%
Comparable EBITDA was EUR 40.2 (33.4) million, 14.8% (14.2%) of net sales
Items affecting comparability were EUR -8.7 (-6.6) million mainly relating to the merger of Altia and Arcus
Reported EBITDA was EUR 31.6 (26.8) million, 11.6% (11.4%) of net sales
Anora is not providing guidance for 2021, but the short-term outlook has been updated, page 27
|Q3 21||Q3 20||Q1-Q3 21||Q1-Q3 20||2020|
|Net sales, EUR million||114.0||86.6||272.5||235.9||342.4|
|Comparable EBITDA, EUR million||20.2||14.6||40.2||33.4||52.4|
|% of net sales||17.7||16.9||14.8||14.2||15.3|
|EBITDA, EUR million||16.9||8.8||31.6||26.8||40.3|
|Comparable operating result, EUR million||15.2||10.3||27.6||20.3||35.0|
|% of net sales||13.3||11.9||10.1||8.6||10.2|
|Operating result, EUR million||11.9||4.5||18.9||13.7||22.9|
|Result for the period, EUR million||8.7||3.1||14.0||10.5||17.8|
|Earnings per share, EUR||0.19||0.08||0.35||0.29||0.49|
|Net cash flow from operating activities, EUR million||-5.1||-4.4||-6.7||5.9||56.1|
|Net debt / comparable EBITDA||2.9*||0.7||2.9*||0.7||-0.1|
|Personnel end of period||1 100||654||1 100||654||637|
f calculated using pro forma figures, net debt / comparable EBITDA would have been 1.6 for Q3 21 and 1.6 for Q1-Q3 21.
*If calculated using pro forma figures, net debt / comparable EBITDA would have been 1.6 for Q3 21 and 1.6 for Q1-Q3 21.
CEO Pekka Tennilä:
“We had a historical and exciting third quarter with the completion of the merger of Altia and Arcus on 1 September when Anora was formed. Anora is a leading wine and spirits brand house in the Nordics, and we are a global forerunner in sustainability in our industry. As one company, we have a stronger position to pursue growth opportunities both in and outside the Nordics and we are well positioned to create value for our stakeholders.
I am very pleased that Anora has been well received and the feedback among our customers and partners has been welcoming. It has been inspiring to meet our people across the organisation and to see their strong commitment and enthusiasm. An important milestone was to announce Anora’s future operating model in October when we also made the first leadership nominations. The work to structure our operations continues and we expect to be ready by the end of December. Despite the transformation, we have been able to perform at a high level and deliver strong results.
I want to extend my thanks to all employees for their great work, resilience, and achievements during this time of transition.
Integration has started well and is progressing according to plan and on schedule. We are committed to the previously announced annual EBITDA net synergy target of EUR 8-10 million and we continue to expect that 80% of the net synergies are to be realised within 2 years.
When looking at Altia and Arcus stand-alone development in Q3, we can see that both companies have performed very well. During Q3, Covid-19 restrictions have been lifted and we have seen the travel retail and on-trade channels recovering gradually. As a result, the volumes in the monopolies have declined from the previous year yet are still at a higher level than before the pandemic.
In the former Altia, net sales in Q3 improved, driven by the growth in spirits sales in Finland & Exports and Scandinavia segments, and supported by favourable currency exchange rates. In Altia Industrial, net sales declined slightly despite the good recovery of contract manufacturing volumes.
In the former Arcus, the comparison against Q3 20 is particularly tough due to the Covid-19 effect. The reported net sales growth in Q3 was supported by favourable currency exchange rates. Net sales in wine in the large Swedish and Norwegian markets were at last year’s level, while net sales in spirits were slightly below last year’s level.
Mitigating climate change continues to be a high priority for us. Our own bio-energy plant at the Koskenkorva Distillery enables a high energy self-sufficiency and our modern production plant in Gjelleråsen already uses geothermal and renewable energy. We are taking further steps towards reaching carbon neutral production and our new sustainability targets will be set for the Group during 2022.
Looking forward, the fourth quarter of the year and the Christmas season are very important for us and we are well prepared. In aquavits, our strong combined offering of traditional brands such as Linie and O.P. Anderson are complemented with both original and novelty Christmas aquavits. In the other Christmas season big seller, glöggs, our wide offering includes exciting novelties under the Blossa brand, including launches in the no-low category as well as more traditional glöggs.
We are not providing guidance for 2021 but have updated our short-term outlook. Societies are returning to normal which is expected to impact our channel mix with the on-trade and travel retail growing share of sales. In the Industrial segment, barley market prices are expected to remain at a high level due to the historically poor crop in Finland, and a global imbalance between the demand for and supply of grain. We also see significant cost pressure in other raw materials. We continue to carefully monitor the development of Covid-19 and to implement necessary precautions for the health and safety of our employees.”
Outlook for 2021
The development of the Group’s business operations and profitability are affected by the competitive environment, the overall economic outlook and changes in alcohol taxation and regulation. Uncertainty related to changes in consumer buying behaviour and consumer demand continues. In addition, overall fluctuations of direct product costs affect the Group’s profitability.
Anora has updated its short-term outlook but is not providing guidance for 2021.
Societies are returning to normal, which is expected to impact Anora’s channel mix with on-trade and travel retail growing share of sales. In the Industrial segment, barley market prices are expected to remain at high levels due to the historically poor crop in Finland, and a global imbalance between the demand for and supply of grain. There is also significant cost pressure in other raw materials. Anora continues to carefully monitor the development of Covid-19 and to implement necessary precautions for the health and safety of its employees.
Anora will publish financial reports in 2022 as follows:
10 March: Financial Statements Bulletin for 2021
19 May: Interim Report for January-March 2022
1 September: Half-Year Report for January-June 2022
24 November: Interim Report for January-September 2022
The Annual Report 2021 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 in week 16. The Annual Report includes also the Sustainability Report.
Anora Group Plc’s Annual General Meeting (AGM) 2022 is planned to be held on Wednesday 11 May 2022 in Helsinki. The Board of Directors will summon the AGM later.
This release is a summary of Anora Group Plc's Interim Report January-September 2021. The complete report is attached to this release and is also available on the company website at www.anora.com/investors.
Pekka Tennilä, CEO
Sigmund Toth, CFO
Analysts and investors: Tua Stenius-Örnhjelm, Investor Relations, tel. +358 40 748 8864
Media: Petra Gräsbeck, Corporate Communications, tel. +358 40 767 0867
CEO Pekka Tennilä and CFO Sigmund Toth will present the report on the same day 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: <strong>Join meeting here</strong>.
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
UK: +44 20 3443 9579
US: +1 917-781-4622
Conference ID: 416 982 55#
Questions to the management can be sent through the Teams chat.
The presentation material will be shared in the online meeting and it can be downloaded on the same day on Anora’s website at: www.anora.com/investors
A recording of the event will be available later on Anora’s website.
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