Viva Wine Group (VIVA) Q1 2025 & M&A Announcement earnings summary

Executive summary

• Achieved 14 consecutive quarters of increased market share in the Nordics, reaching a record 23%, despite a 1% decline in net sales due to the timing of Easter.

• Announced the acquisition of 88.59% of Delta Wines for EUR 57 million, expanding presence into four new European markets and strengthening the B2B platform.

• Continued focus on organic growth, strategic acquisitions, and professionalization of the organization, with increased M&A activity.

• OPEX developed according to plan, with investments in marketing and operational excellence expected to support long-term growth.

• Management continuity at Delta Wines is ensured, supporting integration and growth.

Financial highlights

• Net sales declined by 1% year-over-year to SEK 895 million, with organic growth at -0.9%.

• Gross margin improved by over 2 percentage points to 21.2% compared to the prior year.

• Adjusted EBITDA/EBITA margin decreased to 5.5% from 6.3% last year, mainly due to lower sales and increased OpEx.

• Net debt/EBITDA decreased to 1.3x, remaining within target levels, but expected to temporarily exceed 3x post-acquisition.

• Cash flow from operations impacted by seasonal inventory build-up for Easter.

Outlook and guidance

• Gross margins in the Nordic segment expected to remain strong and may benefit from favorable currency developments later in the year.

• OpEx as a percentage of net sales guided to be in line with 2023 for the full year, with Q1 higher due to seasonality.

• No significant price increases expected; focus remains on maintaining strong gross margins.

• Board to review financial targets following the Delta Wines acquisition.

• The acquisition is expected to be EPS accretive from completion and enable substantial synergies in sales, product development, and procurement.