Q NET SALES 7 NOVEMBER 2017

Transcription

1 Q NET SALES 7 NOVEMBER 2017

2 KEY MESSAGES Q Overall sales growth of +7.5% comprises two dishnct realihes: Branded Business net sales contrac<on of -4.9% Other Businesses increase of 25.3% 2. ExecuHng on achon plans to address the three key operahng challenges Fruits and Wine, in France Krupnik Clear, in Poland Sobieski, in the United-States 3. Early signs of gains driven by our reconfigured routes to market are in evidence 4. MBWS reconfirms its Mainstream business model, and reiterates the objechves of its strategic plan to

3 +7.5% NET SALES GROWTH DRIVEN BY OTHER BUSINESSES Q Q3 YTD 2017 CONSOLIDATED NET SALES 111.4m +7.5% 323.9m +5.1% Branded Business Other Businesses 57.9m 53.5m -4.9% +25.3% 180.1m 143.8m -2.3% +16.1% 1. Branded business sales decrease due primarily to: Fruits and Wine, in France Krupnik Clear, in the tradi<onal trade channel in Poland Sobieski in the US 2. Other Businesses growth driven by: Sobieski Trade: expanding tradi<onal trade client list and product por\olio Private Label: growth in third party bo`ling ac<vi<es 3

4 Q BRANDED BUSINESS NET SALES BY CLUSTER Net sales In m Q Net Sales Branded Business WEMEA CEE Americas Asia Pacific Forex Impact Q Net Sales Branded Business Branded Business net sales decreased by 3m to 57.9m in Q3 2017, a -4.9% * decrease as follows: - 2.5m in WEMEA due to a volume sales decline of -11.5% for Fruits and Wine in France, and on-going sales weakness in Spain - 1.1m in the Americas due to lower than expected shipments in the US during the quarter, slightly offset by a slight return to top-line growth in Brazil An increase of 0.6m in Central and Eastern Europe, driven by double digit growth in Lithuania and Bulgaria, and par<ally offset by a sales decrease in Poland (clear Krupnik in the tradi<onal trade channel) 0.1m growth in Asia-Pacific as investment con<nues to drive the ramp up in China * At constant currency basis 4

5 WEMA CLUSTER Q NET SALES Change in sales growth vs. YAGO, ex. forex impact WEMEA France Rest of cluster France William Peel Sobieski Fruits and Wine Q % -6.1% -13.4% Volumes vs Q3 YTD % -3.1% -6.9% Market share Market MBWS MBWS Change -1.8% +2.9% -9.3% +0.3% +10.0% -6.9% Source : Nielsen YTD P9 2017, IRI YTD P for Fruits and Wine 24.8% 15.4% 30.0% +0.5 pt +1.0 pt +0.8 pt FRANCE Fruits and Wine: volume sales contracted -6.9% YTD (and -11.8% in Q3; source: IRI P9 2017) due to unseasonable weather in the summer months; the brand nevertheless con<nued to out-perform its category William Peel: +0.3% YTD volume growth (Nielsen P9 YTD 2017) and ongoing market share of +0.5 point in a declining category Sobieski volume +10.0% YTD (Nielsen P9 YTD 2017) and a one-point market share gain, driven by commercial excellence and a compelling brand proposi<on Pillar brands are expanding their presence in the on-trade segment, led by Marie Brizard REST OF CLUSTER Sales decrease in Spain as business reorganiza<on con<nues 5

6 CLUSTER WEMA ACTION PLAN FRANCE Senior Management strengthened Fruits and Wine strategy under review Focused on accelerahon of commercial excellence, driving growth in revenue generahon and profitability via: 1) category management 2) greater visibility in stores 3) more efficient promo<onal ac<vity 4) innova<on and third-party por\olio distribu<on SPAIN DistribuHon contracts, pricing structure, and promohonal strategy under review Marie Brizard: leveraging innovahon to expand the brand s targeted consumer base 6

7 CEE CLUSTER Q NET SALES Change in sales growth vs. YAGO, ex. forex impact Q Q3 YTD 2017 CEE Poland Rest of cluster +2.6% -2.6% +12.4% +2.8% -2.7% +13.8% Lithuania and Bulgaria drove the cluster s growth POLAND Krupnik Clear: sales decrease due largely to performance in the tradi<onal trade channel Poland Krupnik Clear Flavored Krupnik Total Krupnik Source : Nielsen YTD P Volumes vs Market share Market MBWS MBWS Change -0.8% -5.4% 14.9% -0.7 pt +8.6% +19.8% 4.9% +0.5 pt +1.4% -3.4% 12.5% -0.6 pt Flavored Krupnik con<nued to expand at more than two <mes the sub-category s growth rate, currently accoun<ng for 8.5% of brand volume; growth a`ributable primarily to the tradi<onal trade channel William Peel double-digit growth 7

8 CEE CLUSTER ACTION PLAN POLAND Ongoing execuhon of distribuhon agreements and push strategies to ensure beier visibility of Krupnik in the tradihonal trade channel ( perfect store program) Defense of clear Krupnik s market share via pricing effechveness Development of flavored Krupnik to reach 20% of brand volume sales AcceleraHon of the distribuhon of William Peel and the rest of the Marie Brizard pillar brands 8

9 AMERICAS AND ASIA-PACIFIC CLUSTERS Q NET SALES Change in sales growth vs. YAGO, ex. forex impact AMERICAS -19.0% -14.3% ASIA-PACIFIC Q Q3 YTD % +24.7% AMERICAS Shipments decreased in Q3 2017, a consequence of ongoing destocking Deple<ons improved during the months of July and August Results nega<vely impacted by hurricanes and extreme weather in September Distribu<on agreements with Southern Glazers Wine & Spirits (SGWS) and Empire Merchants are beginning to deliver distribu<on gains Marie Brizard and Cognac Gau<er growing dynamically in the US MBWS-Brazil posted slight net sales growth in Q ASIA-PACIFIC Con<nued investment driving the ramp up of MBWS business in China 9

10 AMERICAS CLUSTER ACTION PLAN UNITED STATES ExecuHon of the distribuhon agreements with Southern Glazers Wine & Spirits (SGWS) and Empire Merchants, along with greater promohonal efficiency Planned re-launch of Sobieski with new brand packaging AcceleraHon of the distribuhon of Marie Brizard, building on the brand s success and best prachces in the on-trade channel in Great Britain 10

11 PILLAR BRANDS William Peel Sobieski Krupnik Cognac GauHer Marie Brizard Fruits and Wine Q Q3 YTD 2017 Volume Net sales Volume Net sales -0.8% -7.7% -15.9% % +8.1% -20.7% -0.9% -13.6% -3.5% % +4.6% -21.1% +3.0% -4.7% -15.3% +81.8% +6.7% -7.8% +1.3% -6.6% -3.5% +93.2% +7.1% -10.2% Total Pillar Brands -9.1% -3.4% -6.2% -0.7% During Q3 2017, MBWS pillar brand net sales contracted -3.4% Sobieski in the US caused a significant part of the sales decrease, followed by Fruits and Wine in France, and clear Krupnik in Poland Cognac Gau<er and Marie Brizard sales growth par<ally offset the decline William Peel has grown volume sales by +3.0% year-to-date 11

12 OTHER BUSINESSES Change in sales growth vs. YAGO, ex. forex impact OTHER BUSINESSES +25.3% +16.1% Sobieski Trade Private Label Q % +19.7% Q3 YTD % +10.6% Strong growth in Sobieski trade sales due to expanding client list and broader por\olio of products Private Label growth driven by growth in third party bo`ling ac<vity 12

13 CONCLUSION 1. Overall sales growth of +7.5% comprises two dishnct realihes: Branded Business net sales contrac<on of -4.9% Other Businesses increase of 25.3% 2. ExecuHng on achon plans to address the three key operahng challenges Fruits and Wine, in France Krupnik Clear, in Poland Sobieski, in the United-States 3. Early signs of gains driven by our reconfigured routes to market are in evidence 4. MBWS reconfirms its Mainstream business model, and reiterates the objechves of its strategic plan to

14 APPENDICES 14

15 Q SALES GROWTH BY CLUSTER Q Restated* Organic Growth Currency impact Q Organic growth (excl. Currency impact) Organic growth (incl. Currency impact) WEMEA % -7.5% France % -6.1% Rest of WEMEA % -13.4% CEE % 3.9% Poland % -0.7% Rest of CEE % 12.4% Americas % -23.8% Asia Pacific % 10.3% Sub-Total Branded Business % -4.9% Other Businesses: Sobieski Trade % 33.9% Private Label % 19.7% Sub-Total Other Businesses % 26.5% TOTAL MBWS % 8.0% *Q net sales restated for comparability to Q Restated figures reflect the end of the Mateus and Ferreira contracts in WEMEA, the reclassificapon of Pulco in Spain to Private Label acpvity, and the sale of the Augustowianka water brand in Poland (Sobieski Trade). 15

16 Q3 YTD 2017 SALES GROWTH BY CLUSTER Q3 YTD 2016 Restated* Organic Growth Currency impact Q3 YTD 2017 Organic growth (excl. Currency impact) Organic growth (incl. Currency impact) WEMEA % -3.8% France % -3.1% Rest of WEMEA % -6.9% CEE % 4.2% Poland % -0.6% Rest of CEE % 13.8% Americas % -12.7% Asia Pacific % 24.7% Sub-Total Branded Business % -1.6% Other Businesses: Sobieski Trade % 24.3% Private Label % 10.6% Sub-Total Other Businesses % 17.5% TOTAL MBWS % 6.0% * Q3 YTD 2016 net sales restated for comparability to Q3 YTD Restated figures reflect the end of the Mateus and Ferreira contracts in WEMEA, the reclassificapon of Pulco in Spain to Private Label acpvity, and the sale of the Augustowianka water brand in Poland (Sobieski Trade). 16