Viva Wine Group AB

Welcome to Viva Wine Group Q1 presentation for 2026. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now I will hand the conference over to CEO Emil Salnas and CFO and Deputy CEO Lynn Gavir. Please go ahead.

Good morning, everyone, and welcome to our Q1 2026 presentation. My name is Emil Salnes and I will, together with our CFO and my deputy CEO, Lynn Javert, present today. This is the agenda for today. And before we go into the quarterly update and financials, I want to start by giving you a short introduction to Viva Wine Group. 2025 was a year of growth and expansion. Today, almost 90% of our business is in our B2B segment, which includes the Nordic monopoly markets, as well as retailers and restaurants in both the Nordics and Europe. With the acquisition of Delta Wines, our B2B business is now present in seven markets. In the Nordic monopoly market, we are the market leader in wine. With the acquisition of Delta Wines, we also entered the open market in Europe, and we are the leading wine distributor in the Netherlands. Just over 10% of our sales is in the B2C segment, which consists of our e-commerce business based in Germany and reaching a total of 11 markets, which makes us one of the leading online wine retailers in Europe. So, now let's move on to the Q1 update and our performance summary. Looking at Q1, we had a solid start to the year and I'm pleased to report that we delivered both organic growth and improved profit. Net sales increased significantly by 51%, mainly driven by acquisitions. Adjusted EBITDA increased year-on-year due to a strong performance from the underlying business and the consolidation of Delta Wines and Alpha brands, with an adjusted EBITDA margin of 5.5%. We also had a solid operative cash flow in the quarter, in line with the underlying performance of the business. As we reported already in the last quarter, the year started with the strategic acquisition of Alpha brands in Norway. This acquisition strengthens our presence in Norway and also opens up the grocery retail market. It is also a significant step for Viva into the no-low segment, which is the fastest growing segment in most of the markets where Viva operates. Alfa Brands was consolidated into our financial reporting as of February. The integration of the business has been quick and smooth. We are already realizing organizational and commercial synergies according to plan. Alfa brands made a positive contribution to earnings per share already in Q1. Now let's look in more detail at the financial performance. I will hand over the word to Lynn.

Thank you, Emil. We have a strong net sales growth of 51% in the quarter, mainly driven by the acquisitions of Delta wines, but also Alfa brands. The organic growth reached 2% and is supported by both B2B and B2C segments. In our B2B segment, we continue to be the clear number one in the Nordics and Delta Wine's performance is going according to plan and is estimated to perform better than the market. B2C continued the positive trend and reported organic growth in the quarter. Looking at the adjusted EBITDA margin, the adjusted EBITDA increased versus last year. And as Emil mentioned, it is a result from a strong performance from our underlying business, as well as the consolidation of Delta wines and Alpha brands. The adjusted EBITDA margin reached 5.5% in the quarter. The underlying business strengthened its margin compared to last year. Our cash flow from operating activities was solid and in line with our underlying operating performance. Cash flow from investing activities consists of the acquisition of alpha brands. Our cash flow from other investing and financing activities includes repayments of term loans according to plan. Looking at our networking capital, it had a very strong performance and development towards net sales, and the ratio is down from 9.6 in the previous quarter to 9.1%. A high-level simulation, including net sales for 12 months, shows that the ratio has improved versus last year, supported by Delta Wines. We ended the quarter with a net debt to EBITDA ratio of 2.6, which is in line with our expectations. A high-level simulation of rolling 12 months of EBITDA reduced the number from 2.6 to approximately 2.5, which is in line with our financial targets.