Alcohol company Anuran earnings deteriorated in the second quarter.
The company’s turnover increased to 165.7 million euros in April–June from 160.1 million in the comparison period, but the comparable EBITDA decreased to 18.9 million euros from 23.6 million euros.
The net cash flow of the business was 5.1 million euros.
The company kept the instructions unchanged. In 2022, Anora’s comparable EBITDA is expected to be between 75-85 million euros. This corresponds to the pre-pandemic level and takes into account the EUR 4.6 million annual effect of the Anora brands sold due to the merger.
Wine business under pressure
According to the company, the increase in turnover was supported by the recovery of passenger and catering sales and the implemented price increases.
Managing director Pekka Tennilän according to the report, the development of the comparable EBITDA was challenging due to the increased production costs and the weaker development of the Wine segment.
“During the second quarter, we saw the normalization of the market continue. The dispensing and passenger sales channels recovered strongly, while market volumes in monopoly channels returned to pre-pandemic levels. The timing of the Easter sales in the second quarter this year had a positive effect on the sales of wines and spirits,” says Tennilä in the results release.
The strong growth in the Spirits segment’s revenue was driven by passenger and liquor sales.
“The Koskenkorva brand also did well both in the monopoly and international markets. The turnover of the Wine segment decreased in the second quarter mainly due to the weakening monopoly market and the changes in the principal portfolio. The turnover of the Industrial segment increased thanks to contract manufacturing and higher selling prices of industrial products.”
According to Tennilä, the decrease in profitability was due to the Wine segment, whose profitability decreased due to lower sales and lower margins. The decrease in sales was generally influenced by significantly lower market volumes when the coronavirus restrictions were removed, as well as the decrease in Anora’s market share.
“The decline in margins was mainly influenced by higher production costs, which we have not yet been able to fully compensate with the price increases that have already been implemented.”
“Reversing the direction of the wine business is our key focus area. We are working hard on our brand design redesigns and relaunches, with the aim of winning more tenders and replacing lost principals. We have already taken significant steps in the right direction and I am convinced that we have the right strategy to put the wine business back on the growth track.”
Source: Arvopaperi by www.arvopaperi.fi.
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