Viva Wine Group AB

Good morning everyone and welcome to our Q1 2025 presentation. My name is Emil Sahlnes and I will, together with our CFO, Lynn Gavert, present today. This is the agenda for today. Due to our acquisition of Delta Wines, which was communicated earlier today, the format will be slightly different. We will start with our customary Q1 presentation before moving on to a presentation of Delta Wines and then ending with some final remarks and a Q&A. So now let's move on to the Q1 update and our performance summary. In the quarter, we continue to report increased market shares in the Nordics, which extends our streak to 14 straight quarters of increased market shares in the Nordics, a great achievement by our Nordic companies. Net sales were significantly affected by the timing of Easter, which this year fell entirely in April. As a result, net sales declined by 1% with an organic growth rate of negative 0.9% compared to the same period last year. We continue to deliver on gross margin, which was strengthened compared to prior year with over two percentage points to 21.2%. Due to lower sales and our step up in OPEX communicated last quarter, adjusted EBITDA for the quarter decreased to 5.5% compared to with 6.3% last year. Now let's look into the details of the financial performance and I will hand over the word to Lin.

Thank you, Emil. We have a small negative sales growth of 1% for the group, and we closed the quarter slightly below last year. The decreased compared to the same quarter in 2024 was expected due to timing of Eastern. Easter sales will not be visible until the second quarter. Group organic growth slightly negative with 0.9%, as Emil mentioned. And to mention again, Viva Wein Group performed better than the monopoly markets. All countries in segment Nordic also increased their position compared to the market. Ecom was more or less at the same level as prior year. The consumer sentiment, especially in Germany, our biggest Ecom market, was still at very low levels. However, Q1 shows positive organic growth in Ecom and we are seeing cautious signs of stabilization. We have a decreased profitability versus prior year with a lower EBITDA margin. The main reason is a combining of the timing of Eastern and as previously communicated in conjunction with our Q4 report, our strategic OPEC step up to be able to support our growing Nordic business, marketing investments in Ecom and a professionalization of our organization. The Nordic segment has strengthened their gross margins. The main reason is our well-balanced price adjustments from previous quarters. We only have a slight contribution from currency compared to last year. Due to our hedging policy, we will not see the current positive currency development in EURSEC until later this year. Looking at our net working capital, it's above last year and in relation to net sales and that is mainly from Easter and build up of inventory as opposed to Easter in March 2024. Our net debt well within our targets and net debt to EBITDA decreased to one times three. We have a lower operative cash flow impacted by mentioned seasonal effects. The buildup for Eastern had a significant impact on networking capital, which was higher this quarter. Our operating activities are in line with previous year, but netted out from the increase in working capital from Eastern. Our cash flow from our financing activities was according to plan.

Thank you, Elin. So now over to the performance by segments. We have, as mentioned, continued our steady growth in the Nordic market shares and once again increased more than the market. This is despite the overall market performing soft with decreased sales in all three monopoly markets. For the Nordic market combined, Viva Wine Group reported a market share of 23% for Q1, which is an increase of 0.7 percentage points from last year. Total monopoly sales in the Nordic region decreased in volume compared with the corresponding quarter in 2024. The Easter effect is the main explanation, but there is also an effect of a lower consumer sentiment across the Nordics. In Finland, the channel shift towards retail due to the 8% wines meant that the monopoly market decreased more than the Nordic average. In Sweden, we reached almost 29% market share in the quarter and beat the market in all wine segments. In Finland, we also continue to beat the monopoly market and have increased our market share to 22.1%. The decrease in sales at Alko have been compensated by strong sales in retail, resulting in overall flat net sales for the Finnish company, despite the Easter effect. In Norway, we increased our market share to 7.1%. The increase in market share in Norway is driven by strong organic growth and by the acquisition of target wines.