Italian Wine Brands: excellent 2017 results
€ 149.74 M net sales (+2.60%), € 16.03 M restated Ebitda (+41.61%)
The Board of Directors or Italian Wine Brands S.p.A., the first wine company listed to Milan Stock Exchange, approved the group’sconsolidated financial statements as of December 31st 2017, drawn up in accordance with IFRS internationalaccounting principles.
Net Sales as of 31/12/2017 reached € 149.74, remarkably more than the previous financial year. The Wholesale division was the one that contributed most to such increase in turnover, from € 60.33 M in 2016 to € 69.02 M this year (+14.41%). The international markets that boosted such growth rate were mainly England, Switzerland, Germany and Denmark.
Within the Group, the Distance Selling division’s contribution to the turnover has decreased from € 85.00M in 2016 to € 79.84M in 2017 (-6.07%).
Sales policies have been implemented in such division that are mainly aimed at increasing the division’s earnings, mainly by i) increasing its volumes on strategic markets, such as Germany (+0.1%), France (+3.9%) and Austria (+20.01%), ii) gaining fewer new buyers in England (-28.78%) and Italy (-9.03%), iii) winding down its business in Sweden and North America where the market is too burden some and under too much pressure.
In 2017 IWB Group earned 75.1% of its net sales abroad (71.9% in 2016). Its best-selling markets are the German-speaking ones, i.e. Germany, Austria and Switzerland, which account for 50.1% of the turnover.The remarkably higher earnings of 2017 (adjusted EBITDA up from € 11.32 M to € 16.03 M) mainly relied onthe management’s great ability to serve the foreign markets with increasingly successful and well-known products in both the Wholesale and the Distance Selling Divisions. This was also helped by the completion of the Group’s companies’ integration process and the reduction of fixed costs by saving on employees andutilities, transport, logistics and other overheads. In the last 12 months, the Group has brought its Net Financial Indebtedness to next to zero, thus confirmingits ability to produce substantial cash flows. The group’s adjusted Net Result for the period is € 8.13 M compared to € 4.69M as of December 31st 2016.Such increase is not only due to the a foresaid increase in earnings but also to a progressive decrease infinance charges and to depreciations.
As to the parent company, IWB S.p.A., as of 31 December 2017, its net earnings for the period amount to €4.26M with € 13.86M of net cash. By virtue of the structural ability to generate cash, IWB Board of Directors continued a low-payout dividend distribution policy (although doubled if compared to 2016) according to the acquisition growth plan, so far driven by a dynamic pipeline of opportunities under continuous analysis. The amount of the dividend pershare related to 2017 Financial Statements is therefore € 0.40 per entitled share.
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