Analyst presentation 2018/19 Year ended 31 March 2019
Disclaimer DISCLAIMER THIS PRESENTATION may contain forward looking statements. These statements are based on current expectations, estimat es and projections of Lucas Bols’ management and information currently available to the company. Lucas Bols cautions that such statements contain elements of risk and uncertainties that are difficult to predict and that could cause actual performance and position to differ materially from these statements. Lucas Bols disclaims any obligation to update or revise any statements made in this presentation to reflect subsequent events or circumstances, except as required by law. Certain figures in this presentation, including financial data, have been rounded. Accordingly, figures shown for the same category presented in different tables may vary slightly and figures shown as totals in certain tables may not be an exact arithmetic aggregation of the figures which precede them. 2
FY 2018/19 1. Lucas Bols at a glance 2. Operational highlights 3. Financials 4. Outlook 3
Lucas Bols at a glance 13.4% 18.5% 46.7% 20.0% 22.7% 19.9% Revenue EBIT* €m €m 4
Global brands delivering on strategic target with revenue growth of 3.5% 13.4% 18.5% 46.7% 20.0% 22.7% 19.9% Revenue EBIT* €m €m 5
More than half of the revenue from outside of Western Europe Global revenue split reflects strong growth in the US 6
Highlights FY 2018/19 - Route to market strengthened, credit facility improved and Avandis integration completed Revenue of € 92.5 million, an increase of 1.2% compared to last year (H2: +2.9%) Revenue The global brands reported revenue growth of 3.5%, mainly driven by strong growth in the US, the UK and Brand China, while the decline in revenue of the regional brands moderated to 5.9% due to improved trends in performance the second half of the year (H2: global brands +4.2%, regional brands -0.9%) North America showed strong double-digit growth, driven by 20% revenue growth in the US, while Western Regional Europe saw revenue decline by 3.9%. Asia-Pacific was in line with last year while Emerging Markets performance returned to growth on the back of a good performance in the second half year The overall gross margin was 59.2% (down 160 bps) as a result of geographic mix with higher shipments Gross margin to lower margin markets and the introduction of Nuvo Normalised EBIT amounted to € 20.8 million, a decrease of 7.6% as a result of the lower gross margin. EBIT Currencies had a € 1.1 million negative impact on EBIT Normalised net profit came in at € 12.9 million; reported net profit amounted to € 16.6 million Net Profit Proposed final dividend of € 0.25 per share, putting total full - year dividend at € 0.60 per share, equal to last Dividend year *The numbers presented on this slide are pre-IFRS and the comparisons are on an organic basis, i.e. at constant currencies and excluding one off items 7
FY 2018/19 1. Lucas Bols at a glance 2. Operational highlights 3. Financials 4. Outlook 8
Clear strategy to capture the growth in the global cocktail market Mission Lucas Bols We create great cocktail experiences around the world . Strategic framework Lucas Bols Leverage Lead the Build the Accelerate global operational development of brand equity brand growth excellence the cocktail market • To strengthen and grow our global brands in the international cocktail market, aiming for an average annual revenue growth of 3-4% • To maintain the competitiveness of our regional brands in regional and local markets 9
Strengthening our route to market by substantial number of new and renewed contracts with existing and new partners An important number of contract renewals, including in: • China, South Korea, Hong Kong and Europe Travel Retail with the Edrington Group • Japan with Asahi • Australia and New Zealand with Beam Suntory • Also in the UK, Ireland, Switzerland and Portugal contracts were renewed • In Scandinavia and Germany the brands were consolidated with one distributor Contracts with new distributors include: • In Spain the portfolio was combined with one new distributor, focused on the on-trade • In Canada contracts were signed with two new distributors 10
Leading the development of the cocktail market Educating and inspiring the bartender community with the Bols Bartending Academy • Bols engages with the international bartender community to create new drinks and experiences for their customers with its wide variety of products and flavours. • The Bols Bartending Academy in Amsterdam and On Tour is important in educating and inspiring bartenders. It strengthens the role of Lucas Bols as a leading authority on cocktails. • Bols Business Class events were held in various locations in 2018/19. In Poland the event was live-streamed globally, reaching bar owners and bartenders on a much broader scale. The 10 th addition of Bols around the World, this year bar teams will compete to become the • world’s Best Bar team with a big finale in Amsterdam in June 2019. Create innovative drink strategies and act on upcoming trends around the world • Lower alcohol trend: we have created a range of low-alcohol cocktails based on the Bols Liqueurs range, like the Bols Waterlemon and the Bols Cucumber Tonic. Also Passoã has a great tasting low alcohol alternative with Passoã Fresh. • Less sweet trend: introduction of the Bols Pink Fizz, made with Bols Pink Grapefruit liqueur. • The Negroni trend: our own signature cocktail, the Bols Red Light Negroni made with Bols Genever, the Original Spirit of Amsterdam. 11
Building the Bols brand further by inspiring bartender & bar owner events and signature drink strategies The Bols brand with its distinct focus on the bartending community is clearly one of the leading brands in the global cocktail market. Key focus on a number of drink strategies like Bols Low Alcohol Cocktails, Bols Sprizz and our Add flavor to your margarita program. Revenue of the Bols Liqueurs range showed a mixed performance • Continued growth in the US and accelerated growth in China and South Korea • A decline in markets such as Japan and Germany The focus for Bols Genever remains on key US cities • Activation and expansion of the signature cocktail, the Red Light Negroni Bols Vodka • Showing continued growth in the Netherlands; fierce price competition is still negatively impacting the brand in Canada 12
On-trend activations and social media programs drive awareness and growth of Italian Liqueurs and Damrak Gin Italian Liqueurs returned to growth, driven by both Galliano and Vaccari The Galliano range including Ristretto and L’Aperitivo, is fully on -trend • Successful social media campaign in combination with expansion of distribution for Galliano L’Aperitivo and Ristretto in the US • The popularity of the Galliano Hot Shot is clearly growing in Scandinavia Vaccari showed growth based on the successful expansion of distribution to new markets • The new label design, better reflecting Vaccari’s authenticity, was successfully rolled out Damrak Gin showed double-digit growth in both the Netherlands and the US • The ongoing Global Gin Tonic trend supports growth of Damrak Gin, distilled in the heart of Amsterdam and with it’s preferred citrus forward flavor profile • The social media campaign ‘Ride like an Amsterdammer’ reached over 150,000 consumers in the US • Damrak Gin was launched in South Korea and was also listed at the Formula 1 Singapore Grand Prix 13
Passoã and Nuvo contributed to the accelerated growth in the US Passoã performed well, with mid-single-digit revenue growth mainly driven by growth in the UK, the US and the Netherlands • Driven by distribution expansion to 45 states in the US and growth in the UK and the Netherlands • Menu listings at a growing number of on-trade national and regional chains and first retail listings in the US • Puerto Rico recovered and also contributed to growth • Global distribution was expanded to over 50 countries • The Passoã packaging was renewed with an upgraded design showcasing the natural passion fruit that forms the base of the liqueur • Accelerating growth with the signature cocktail, the Passoã Pornstar Martini and tapping into the trend of low alcohol cocktails with Passoã Fresh Nuvo is successfully launched in the US • The brand had to be rebuilt from scratch from production to distribution • Initial focus on 10 states, targeting the Latin community • A full-blown social media campaign, featuring a number of Latin artists, resulted in over 300 million views • First cases shipped to South America 14
Regional brands: Henkes in Africa back on track Important brand activations Dutch genever portfolio Henkes • Temporary import restrictions into Togo and Benin impacted Henkes revenue in the first half. After the restrictions were lifted in the second half the Henkes business normalised again Dutch genever portfolio • Revenue Dutch domestic genever/vieux portfolio was down in the first half year as a result of the declining market, although with focused support and activations the trend improved in the second half of the year • Two important brand activations in the second half of the year, targeting new consumer groups to gradually compensate for the decline in the traditional young genever and vieux segment: • The relaunch of the Dutch Bols genevers with ‘BOLS komt met een biertje’ • A restyling of the Bokma packaging and launch of Bokma 5-year-old Bourbon Cask 15
Recommend
More recommend
