Viva Wine

• Net sales increased by 8.7% to SEK 1,194 (1,098) million.
• EBITA, adjusted, increased to SEK 104 (70) million. EBITA margin, adjusted, was 8.7% (6.3).
• Cash flow from operating activities increased to SEK 128 (92) million.
• Operating profit increased to SEK 74 (35) million. Operating margin was 6.2% (3.2)
• Market share, in volume terms, increased to 27.9% (27.4) in Sweden, 22.8% (21.3) in Finland and 7.3% (6.4) in Norway.
• Earnings per share was SEK 0.60 (0.00).

January - December 2024
• Net sales increased by 5.8% to SEK 4,211 (3,981) million.
• EBITA, adjusted, increased to SEK 366 (292) million. EBITA margin, adjusted, was 8.7% (7.3).
• Cash flow from operating activities increased to SEK 245 (212) million.
• Operating profit increased to SEK 264 (165) million. Operating margin was 6.3% (4.1).
• Market share, in volume terms, increased to 28.2% (26.6) in Sweden, 21.4% (19.5) in Finland and 6.7% (5.9) in Norway.
• Earnings per share was SEK 1.92 (1.19).

Significant events during the year
• On 1 January, Viva Wine Group's Swedish subsidiaries Chris Wine & Spirits AB and Winemarket Nordic AB merged to form Morningstar Brands AB.
• Viva Wine Group completed the acquisition of the Norwegian wine supplier Target Wines AS as of 2 February.
• John Wistedt took up the position of Deputy CEO of Viva Wine Group on 1 October.
• Johan Lindblad was appointed by Viva Wine Group as Head of Legal and as a member of the Group Executive Management Team, and took up his position at the beginning of December.

Significant events after the end of the year
• The Board of Directors proposes to the Annual General Meeting an ordinary dividend of SEK 1.55 (1.55) per share.

Emil Sallnäs, CEO comments:

A STRONG QUARTER THAT ONCE AGAIN CONFIRMS OUR STRONG BUSINESS MODEL
I cannot say anything other than that I am very pleased with our performance in 2024. We are ending the year with continued record growth in the Nordics and are strengthening profitability in the Group. Our e-com business also continues to deliver stable performance in view of the market conditions. 2024 is a year to be proud of for Viva Wine Group.

Net sales for the year increased by 5.8 percent, driven by the Nordics business, which grew by 8.5 percent for the full year and by as much as 11.2 percent in the last quarter. It is particularly satisfying that organic growth for the Group increased to 5.9 percent in 2024. We are coming close to hitting our profitability target and, despite continued currency weakness, we improved adjusted EBITA margin to 8.7 percent during the year – a result of increased volumes, balanced price adjustments and slightly lower OPEX in the Group.

RECORD GROWTH IN THE NORDICS
Our Nordics business ended the year at a record high with organic growth of 10.5 percent in the last quarter, which ended with very strong Christmas trading. Our market share in the Nordics increased to 22.4 percent for the full year, its highest ever level. In Sweden, we reached 28.2 percent and remain the undisputed market leader. In Finland, we are seeing the result of the channel shift following the introduction of 8 percent wines into the grocery trade, and the monopoly’s sales volumes decreased by 8.4 percent. Our Finnish business performed significantly better, and market share increased to 22.8 percent in the last quarter. We have also established ourselves as a strong player in the grocery trade, and our assessment is therefore that our overall market position has strengthened. Net sales in Finland increased overall by 12.7 percent in the quarter. Norway is the market that accounted for the greatest growth in the last quarter with a net increase in sales of 24.0 percent, primarily from price adjustments, new product launches, better market distribution of existing products but also from the acquisition of Target Wines.

CONTINUED CHALLENGING CONDITIONS FOR E-COM
Viva eCom is continuing to face challenges with the weak market sentiment in Europe, especially in Germany. We saw brighter signs during the year, but the turnaround has been slow to materialise. Despite a relatively good Black Week, this year close in time to Christmas trading, sales were dragged down by weaker Christmas trading and declined by 2.2 percent in the quarter. Overall, net sales decreased by 6.1 percent for the full year, while organic growth decreased to 4.2 percent. In light of the significantly weak market in Europe, we see that we continue to have a good market position. The adjusted EBITA margin fell to 8.5 (9.9) percent, lower OPEX partly offsetting a lower gross margin.

ADVANCES IN SUSTAINABILITY
We are continuing to work systematically on sustainability throughout the company and expanded our sustainability team during the year. As for many other companies, new sustainability reporting requirements are on the way, and we are in the process of preparing both the input data and the ESRS report for the 2025 financial year. At the same time, it is important to Viva Wine Group that we do not just regard it as a compliance matter. For us, sustainability is a key element of our entire business, where we work alongside the Nordic monopolies to attain our common goals.

CONTINUOUS IMPROVEMENTS
In 2024, we started work to further strengthen our internal governance processes and professionalise the entire organisation, partly through the newly created positions of Head of Legal and Deputy CEO.
The Nordics business has grown strongly in recent years, which has necessitated support in various areas to safeguard future growth. This long-term work will continue in 2025, which will have some impact on total OPEX.

GOOD PROSPECTS FOR 2025
Although a year ago I felt confident about 2024, there were challenges such as increased alcohol taxes and market sentiment in both the Nordics and Europe that remained weak. As we end the year with a clear improvement in profitability and record high organic growth, with almost one in every four glasses of wine consumed in the Nordics containing our products, I feel incredibly proud of how strong our business model is and of the superb efforts made by our employees. Developments in Europe will continue to pose a challenge, but in spite of everything there are signs of improvement in the longer term.

We have good momentum in the Group and are continuing to develop in the right direction. I look forward to 2025 with great confidence.

Emil Sallnäs, CEO Viva Wine Group
Stockholm, February 2025

Please see the full report in the attached pdf.

Publication and presentation
Viva Wine Group's interim report for Q4 2024 will be published at 8.00 am on 20 February 2025. 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/52069. 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