Viva Wine Group AB

good morning everyone and welcome to our q1 2024 presentation my name is emil salnes and together with our cfo lynn gavert i will present today from this quarter on onwards we will try a for us new way of presenting without video this is the agenda for today and before we go into the quarterly update and financials i just quickly want to start by giving you a short introduction to viva wine group We have two major segments, Nordics and e-com. In the Nordic monopoly market, we are the market leader in wine. We also have a profitable e-com business in Europe with strong growth potential. Our operating companies are in the Nordic monopoly markets, Sweden, Finland, Norway, while our e-com business is based in Germany, which is also our main market for e-com. We are operating three platforms in e-com, V-Campo, Weinfirst and Wine in Black. the quarter we continued our eastern european expansion by launching wine first in bulgaria this means that we are now present in 11 markets in total and now let's move on to the quarterly update and performance summary in the quarter we once again reported record high market shares in the nordics and we further strengthened our position as the number one net sales for the group increased by 2.4 percent in q1 with an organic growth of 2.8 percent Our adjusted EBITDA margin of 6.3% was down versus last year and was negatively impacted by the lower sales in e-com along with FX effects in the Nordics. Our latest acquisition, Target Wines, was consolidated in the quarter and had a good start in line with our expectations. Now it's time to look at the financial performance and I will hand over the word to Lin.

Thank you Emil. We have a stable net sales growth of 2.4% for the group. despite continued soft markets. Group organic growth even slightly better with 2.8%. The Nordics is the driver and all countries in the segment contributes. Sweden, Finland and Norway. Ecom, however, still affected by lower consumer sentiment. We continue to see pressure on our EBITDA margin. The main reason is the negative effect from the lower sales in Ecom along with lower gross margins for the Nordics. The Swedish and Norwegian currency was strengthened in the beginning of the year, but due to timing effects of hedges from previous quarters, as mentioned on the last call, we were not able to fully benefit from that in Q1. Going forward, we will see a gradual improvement of our gross margins, although somewhat depending on the currency development later during the year. Well-balanced price adjustments were introduced in the Nordics in the quarter, which had a positive contribution on our gross margins, and our solid sales development proves that consumers have remained loyal to our strong brand portfolios of own brands and partner brands. We will also have a new price adjustment window in September in the Nordics. In the quarter, we also continuously worked with Cost Control, which had a positive contribution. Our net working capital decreased compared to last year, The trend of net working capital towards net sales is in line with seasonal trends. However, better than last year due to the reduced net working capital. Our net debt also well within our targets. Looking at the cash flow, we have a strong cash flow from operating activities during the quarter, which is in line with seasonal trends. Our investing activities related to the acquisition of target wines Our amortization is now at a lower level in the quarter compared to last year as a result of the successful refinancing finalized during Q3 last year.

Over to the performance by segments. We have a continued strong momentum in the Nordics. Our sales volume once again increased more than the market and we reported record high market shares in the quarter in all the Nordic monopoly markets. The timing of Eastern versus previous year had a positive effect on the total market, while the underlying trend still remained soft. For the Nordic markets combined, we reported a market share of 22.3%, which is an increase of 1.5 percentage points from last year. We thereby strengthened our position as the number one in the market. Despite alcohol tax increases in January and price adjustments, we see that consumers have remained loyal to our strong portfolio of brands. Our great performance in the Nordics shows that our agile and consumer-centric model delivers also in more challenging times. It gives us speed to market and enables us to quickly adapt to changing consumer trends. This, combined with synergies between the Nordic countries, with many products being launched in several markets, is one of our most important success factors. Looking at the countries one by one, in Sweden we exceeded 28% market share in the quarter, we beat the market in all wine segments in the quarter we saw especially strong growth in white wines but also rosé wines grew and we see a trend towards increased sales of rosé all year around instead of being a more seasonal product we had many new launches in the rosia segment in different formats of the quarter one example is in the big in the picture below lucky mason bonjour which is in a one liter bottle in finland we continue to see an impressing growth We further gain market shares in the red wine segment, while at the same time, we continue to increase our market shares in the white and sparkling segment. This is an important part of our long-term strategy in Finland. An example of a new sparkling wine is the Cannes from Pizzolatto, one of our bigger partner brands in the Nordics. This is a product which has also been launched in Sweden with success and shows that there is a growing demand for this format. Also in Norway, we made a significant jump in market share to 6.8%. The increase in volume and market share in Norway is driven both by organic growth and by our latest acquisition, Target Wines. We gained market shares in all wine segments. One highlight from the quarter in Norway is Desani Lange Nebbiolo, which is a new partner brand since December last year. Over to you, Linn.