Viva Wine

July – September 2024
• Net sales increased by 4.8% to SEK 998 (952) million.
• EBITA, adjusted, increased to SEK 98 (77) million. Adjusted EBITA margin increased to 9.9% (8.1).
• Cash flow from operating activities increased to SEK 26 (14) million.
• Operating profit increased to SEK 76 (45) million. Operating margin was 7.7% (4.8).
• Market share, in terms of volume, increased to 27.7% (26.3) in Sweden, 21.3% (19.2) in Finland and 6.2% (5.8) in Norway.
• Earnings per share was SEK 0.50 (0.43)

January - September 2024
• Net sales increased by 4.7% to SEK 3,017 (2,882) million.
• EBITA, adjusted, increased to SEK 262 (222) million. EBITA margin, adjusted, was 8.7% (7.7).
• Cash flow from operating activities decreased to SEK 116 (120) million.
• Operating profit increased to SEK 190 (130) million. Operating margin was 6.3% (4.5).
• Market share, in volume terms, increased to 28.3% (26.3) in Sweden, 20.9% (18.9) in Finland and 6.4% (5.8) in Norway.
• Earnings per share for the period was SEK 1.32 (1.19).

Significant events during the quarter
• During the quarter, it was announced that John Wistedt would be taking up the position of Deputy CEO at Viva Wine Group on 1 October.

Emil Sallnäs, CEO comments:

WE ARE CONTINUING TO GAIN MARKET SHARE IN THE NORDICS – WITH SIGNIFICANTLY INCREASED PROFITABILITY
Viva Wine Group's success in the Nordics continued in the third quarter – we are continuing to gain market share while profitability has greatly improved. Our European e-commerce business is also showing stable margins despite an uncertain market.

The third quarter was another strong period for Viva Wine Group, with growth of 4.8 percent and an adjusted EBITA margin of 9.9 (8.1) percent. The improvement is mainly driven by increased sales and a stronger gross margin in our Nordic business. We are also continuing to operate profitably in Europe, despite a slightly softer market than expected.

NORDICS GROWING STRONGLY – WITH INCREASED PROFITABILITY
In our Nordic business, we saw strong organic growth of 8.3 (5.8) percent in the third quarter. Our sales volume in the Nordics increased by 3.1 percent, despite the total volume of sales in the monopoly market decreasing by 3.5 percent. This resulted in a market share as high as 22.2 percent, the highest market share to date in a third quarter since our IPO.
The largest increase in sales volume was in Sweden, where we are continuing along our chosen path with continuous product launches in line with current consumer trends. In Finland, the increase comes largely from the new sale of lower-alcohol wines in grocery stores, while our volume of sales to Alko remains stable. Volume also increased in Norway during the quarter.

I am very pleased with the sharp improvement in profitability in the quarter, with an adjusted EBITA margin in the Nordics of 10.4 (7.6) percent. The improvement in margin comes mainly from increased sales and from our continuous and well-balanced price adjustments.

CONTINUED PROFITABILITY IN OUR EUROPEAN BUSINESS
In the third quarter, we saw a downturn in the e-commerce market in Europe, with consumer sentiment weaker than expected – especially in Germany. Our sales consequently decreased slightly, while profitability remains at a good level. Operating expenses for the third quarter were lower than last year, driven by good cost control and operational excellence where a new warehouse, new logistics model and upgraded CRM model, among other factors, have started to produce results.

The market ahead remains uncertain. In the longer term, however, we see signs of a modest improvement, and we hope for more positive market sentiment with subsequent market growth.

WE DEVELOP OUR EMPLOYEES
In Viva Wine Group, we focus on developing our employees and creating a culture where internal growth is at the core. A good example of this is that John Wistedt, a co-founder of Viva Wine Group and former CEO of one of the group's largest subsidiaries, The Wine Team, is now becoming Deputy CEO of Viva Wine Group.

By investing in talent within the organisation, we ensure sustainable growth and provide our employees with good opportunities for development. We are proud to note that the majority of our subsidiaries' CEOs have started in other roles within the company, underlining our strategy of developing our managers internally. As our employees grow, they strengthen the company and contribute to our long-term success.

WE ARE CONTINUING TO TAKE MARKET SHARE
Viva Wine Group's Nordic business accounted for 84 percent of our sales in the quarter. This segment largely drives our growth and profitability, and when things are going well in the Nordics, Viva Wine Group does well.

Since long before we became a publicly traded company, we have steadily increased market shares in the monopoly markets. This means that consumers are increasingly choosing our wines over others.

Our strategy continues to stay very close to the market and customers' needs and, together with our producing partners, be swift to offer what customers are asking for in terms of quality and trends.

Alongside our successful product strategy, we also have a clear pricing strategy in which we continuously implement well-balanced price adjustments. As a result, we are now seeing a sharp increase in profitability in our Nordic business while continuing to gain market share.

In other words, we have had a strong third quarter. Our Nordic business provides us with a solid foundation. Despite some uncertainty in Europe, we are seeing signs that we are moving towards a more stable position. I feel optimistic about the last quarter of the year – we have everything we need to continue to grow and face future challenges with confidence.

Emil Sallnäs, CEO Viva Wine Group
Stockholm, November 2024

Please see the full report in the attached pdf.

Publication and presentation
Viva Wine Group's interim report for Q3 2024 will be published at 8.00 am on 20 November 2024. At 11:00 a.m. on the same day, a videoconference will be held with CEO Emil Sallnäs and CFO Linn Gäfvert. The videoconference can be accessed at the following link: https://financialhearings.com/event/48952 . The presentation will also be made available at https://investors.vivagroup.se/.

Certified Adviser
FNCA Sweden AB is the Company's Certified Adviser on Nasdaq First North Premier Growth Market.

For more information, please contact:
Linn Gäfvert, CFO
Tel: +46 73 086 89 90
Email: linn.gafvert@vivagroup.se