BELVÉDÈRE Press release Beaucaire, 16 December 2014

Transcription

1 BELVÉDÈRE Press release Beaucaire, 16 December 2014 NEW STRATEGIC PLAN: Back in the Game 2018 (BiG 2018) 1 unique psitining: a challenger at the heart f the wines and spirits market 2 targets fr 2018: EBITDA margin f 12%-15% & cre business grwth f 25%-35% 3 peratinal areas: Ratinalizatin, Optimizatin, Grwth 4 strategic pillars: vdka, William Peel, Marie Brizard, Fruits & Wine 5 key markets: France, Pland/Baltic states, United States, Spain, Brazil Belvédère SA (Eurnext Paris: BVD) tday annunces its new strategic plan fr Jean-Nël Reynaud, CEO f Belvédère, cmments: We are very pleased t be able t present this new strategic plan t ur emplyees, ur sharehlders and all ur partners. This strategic plan will see Belvédère increase its agility and establish itself as a challenger at the heart f the wines and spirits market. I wuld like t thank all the Belvédère teams wh have accmplished utstanding wrk and enabled us t present this new strategic plan befre the end f 2014, as prmised. We will start the 2015 financial year with clear bjectives and a detailed radmap. A new chapter is beginning, and we are enthusiastic and eager t wrk twards Belvédère s success. I. Belvédère: a nrmalised grup ready t deply an ambitius strategy After devting 2014 t peratinal resumptin, Belvédère is beginning a new chapter in its histry with: a) Renewed gvernance: Belvédère nw has a management team built arund Jean-Nël Reynaud, rganised t supprt an integrated and calibrated rganisatin t successfully implement this new strategic plan. Furthermre, the Bard f Directrs presided ver by Benît Hérault mainly cnsists f independent Bard members with cmplementary experience, capable f supprting Belvédère s develpment, alngside representatives f Diana Hlding, its leading sharehlder. b) Sund financial situatin: Belvédère is a debt-free grup that recrded psitive Operating Prfit frm Cntinuing Operatins in 2013, i.e. befre it put in place the first best practice initiatives decided in c) Strng brands with slid multireginal anchring Belvédère is psitined as the main challenger at the heart f the wines and spirits market whse ambitius develpment is based n fur key pillars: vdka (#3 in France, #3 in Pland and #7 glbally), essentially with Sbieski and Krupnik William Peel n the sctch Whisky market (#1 in France and #9 glbally) Marie Brizard n the liqueur market, with acknwledged knw-hw since 1755 Fruits & Wine n the fruit flavured wine market (#1 in France) 1

2 II. A unique psitining t make the mst f market evlutins The spirits market is ne whse average annual grwth is estimated t reach 6% 1 between 2014 and Psitined n the value and standard segments, which are bth the largest segments and thse that cntribute the mst t ttal market grwth in France, Pland and the United States, Belvédère has a unique psitining and a brand prtfli that has a strng fit with current cnsumer trends: ccktails, wmen, value fr mney, sphisticated flavurs Backed by these assets, Belvédère intends t accentuate its multireginal strategy and wants t deliver value by prviding its custmers and cnsumers with trustwrthy, bld and flavurful brands. III. BiG 2018: 3 peratinal areas t becme a challenger at the heart f the market a) Ratinalizatin f nn-strategic and/r lss-making assets Over the scpe f its strategic plan, Belvédère wants t sell ff nn-strategic and peratinal lss-making assets. These are essentially whlesale and retail activities in Pland, superfluus prductin equipment in Pland and real-estate assets in Pland and France. These divestments shuld have three main effects: a decrease in sales f 120 millin, an increase in EBITDA f arund 10 millin and an expected value f ver 20 millin. b) Optimizatin f cre activities via five pririty levers Belvédère has identified five key prjects t enable it t ptimize its peratins: Upgrade the industrial ftprint: Insurce distillatin and rectificatin capacities fr vdka prductin, Secure and upgrade Fruits & Wine prductin, Review the industrial ftprint fr liqueur prductin, Recnfigure the lgistics netwrk. Reduce direct purchasing csts: Optimize purchasing csts via savings f scale assciated with the grup s integratin, Secure surcing fr William Peel. Strengthen the rute t market: Recnfigure the rute-t-market in the United States fcussing n 9 pririty states, Rerganise exprt activities via a decentralised rganisatin, clse t the markets. Streamline the business: Ratinalise the number f stck-keeping units (SKUs), ntably fr vdka and Marie Brizard liqueurs, Value engineering. 1 Surce: Eurmnitr, IWSR, Accenture Research 2

3 Develp cre capabilities: Ensure cmmercial excellence by strengthening categry and revenue grwth management, Undertake industrial and sales planning by imprving prcesses and the rganisatin These five levers shuld help generate an additinal 20 t 30 millin in EBITDA a year frm c) Grwth in business The deplyment f Belvédère s grwth strategy will be underpinned by: Fur strategic pillars Vdka On the vdka market, Belvédère has a differentiated and cmplementary ffer cmbining lcal and glbal brands, predminantly n the Standard and Premium segments. Fr this pillar, Belvédère s strategy is essentially based n the Sbieski brand, fr which the grup is anticipating annual average grwth f arund 14% by vlume between 2014 and 2018 thrugh a renewed and sustained activatin, an acceleratin in advertising and prmtinal investments and the implementatin f a mre efficient rute t market. William Peel William Peel is currently the leading sctch whisky brand n the French market, which is the wrld s largest sctch whisky market. William Peel will sn be marketed in Pland, Brazil and Lithuania, where there is cnsiderable ptential. Belvédère intends t recrd annual average grwth f 4% by vlume fr William Peel between 2014 and This grwth will mainly result frm the increase in advertising and prmtinal investments, upscaling thrugh innvatin and the brand s deplyment in Pland. Marie Brizard Marie Brizard liqueurs are a strng fit with current cnsumer trends. Belvédère believes that it can achieve average annual grwth f 7% by vlume between 2014 and 2018, essentially thrugh the rejuvenatin f the brand s image, the intensificatin f sales relatins with bth the n- and ff-trade segments, advertising and prmtinal investments and an imprvement in the rute t market. Fruits & Wine Fruits & Wine is the French leader in the fruit flavured wine market and will benefit frm wine s current glbal ppularity. Belvédère is expecting annual average grwth f arund 12% by vlume between 2014 and 2018 by pursuing its mmentum, expanding in the grup s key markets and increasing its advertising and prmtinal investments. 3

4 Five key markets fr develpment France: strengthen the #3 psitin by keeping grwth mmentum In France, the Value and Standard segments accunted fr 86% f the market by value in 2013 and 78% f this market s grwth since Belvédère has an excellent psitining enabling it t set a target f strengthening its leadership psitin n the William Peel and Fruits & Wine markets and enabling Sbieski t take 2 nd place n the vdka market. Belvédère is thus anticipating annual average grwth f arund 2% by vlume in France between 2014 and 2018, achieving 2018 sales f ver 200 millin. Pland: mve frm vdka specialist t a glbal wines and spirits player On a market expected t grw by 12% between 2014 and 2018 and n which the Value and Standard segments accunted fr 95% f the ttal market by value in 2013 and almst 88% f its grwth since , Belvédère wants t becme a glbal wines and spirits player. T achieve this, the grup intends t becme #2 again n the vdka market and t intrduce Fruits & Wine and William Peel. Indeed, sctch whisky shuld accunt fr 50% f the frecasted grwth f the Plish spirits market by while William Peel has the perfect psitining t permanently establish itself n this market. In Lithuania, Belvédère is aiming t becme the leader n the vdka market. In Pland, Belvédère is anticipating annual average grwth by vlume f arund 8% between 2014 and 2018, achieving 2018 sales f ver 80 millin, after the divestment f nn-strategic Plish assets. United States: prfitable and sustainable turnarund Fr Belvédère, the American wines and spirits market s ptential mainly centres n vdka, but als n Marie Brizard liqueurs and Fruits & Wine. On a vdka market frecasted t grw by 11.5% between nw and 2018 and whse Standard segment accunted fr 61% f the market grwth by value in recent years 1, Belvédère believes that it shuld be able t becme ne f the Tp 3 imprted vdkas n this segment. In the United States, Belvédère is anticipating annual average grwth by vlume f arund 22% between 2014 and 2018, with 2018 sales exceeding 50 millin. Spain: disrupt and innvate The Spanish market being characterised by its appetite fr innvative prducts, Belvédère is cnsidering launching new prducts and strengthening its sales relatins with the ff-trade segment. Furthermre, the grup believes that Fruits & Wine has substantial grwth ptential in this cuntry. Subsequently, Belvédère anticipates annual average grwth by vlume f arund 7% between 2014 and 2018, with 2018 sales f ver 20 millin. Brazil: accelerate grwth On a market that shuld grw by 13% by value between nw and , vdka and sctch whisky shuld accunt fr 90% f this grwth and allw Belvédère t recrd annual average grwth by vlume f arund 8% between 2014 and 2018, achieving 2018 sales f ver 8 millin. This grwth strategy shuld help generate between 20 millin and 30 millin in additinal EBITDA per year frm

5 IV. Financial targets In rder t cmply with industry best practices, in its press releases Belvédère will hencefrth indicate excise duties based n vlumes sld rather than vlumes prduced. Thus, based n 2014 estimates fr net sales f arund 455 millin and slightly psitive EBITDA, the key areas f Belvédère s strategy that are ratinalizatin, ptimizatin and grwth shuld enable the Grup t recrd the fllwing figures in 2018: Sales f between 420 millin and 460 millin, i.e. grwth f 25% - 35% fr cre activities EBITDA margin f between 12% and 15%, i.e. EBITDA f between 50 millin and 70 millin Revenue frm the divestment f nn-strategic activities f ver 20 millin Self-financed CAPEX between 50 millin and 60 millin between 2015 and 2018 A detailed presentatin f this strategic plan is available n the Belvédère s website ( > Menu in English > Last presentatins Abut Belvédère Belvédère is a grup f wines and spirits cmpanies in Eurpe and the United States with a strng lcal presence. The grup develps a prtfli f premium spirits brands ntably including Sbieski, William Peel and Marie Brizard. Belvedere is listed n Cmpartment B f Eurnext Paris (FR BVD) and is included in the EnterNext PEA-PME 150 index. Cntact: Image Sept Simn Zaks szaks@image7.fr Tel: +33 (0)