January - March 2025
- Net sales decreased by 1.0% to SEK 895 (904) million. The quarter is affected by negative calendar effects due to Easter occurring in the second quarter of the year.
- EBITA, adjusted, decreased to SEK 50 (57) million. EBITA margin, adjusted, was 5.5% (6.3).
- Cash flow from operating activities totalled SEK 0 (96) million.
- Operating profit decreased to SEK 30 (33) million. Operating margin was 3.4% (3.6).
- Market share by volume increased in all our Nordic markets. Share increased to 28.6% (28.1) in Sweden, 22.1% (21.1) in Finland and 7.1% (6.8) in Norway.
- Earnings per share was SEK 0.24 (0.44).
Emil Sallnäs, CEO comments:
CONTINUED PROGRESS DESPITE A CHALLENGING ENVIRONMENT
The market had a dizzying start to the year - but Viva Wine Group is standing firm. After the first quarter, I am pleased to note that gross margin strengthened throughout the business, we are continuing to gain market share in the Nordics and our marketing efforts in Europe are beginning to bear fruit.
Uncertainty in the global environment is continuing, and this is reflected in the market. Interest rate concerns, low growth and international trade tensions are affecting many consumers and businesses. Against this backdrop, it is pleasing to note that our business model is continuing to work according to plan. Despite challenging external conditions, we started 2025 with a relatively stable first quarter. Our exposure to the United States is limited, and the various tariffs that have been re-introduced by the United States and the EU do not significantly affect our business.
Our net sales in the quarter totalled SEK 895 (904) million, adjusted EBITA was SEK 50 (57) million and adjusted EBITA margin was 5.5 (6.3) percent. The decrease compared to the same quarter of 2024 was expected as Easter this year falls in April, meaning that Easter sales will not be visible until the second quarter. Total monopoly sales in the Nordics decreased in volume, compared to the same quarter of 2024. There is currently some uncertainty as to how much of the decline can be explained by subdued customer sentiment, and how much is due to the calendar effects. The gross margin in our Nordic operations increased during the quarter to 21.2 (19.1) percent, driven by balanced price adjustments. We are closely monitoring how consumer behaviour, and therefore wine sales in our markets, are affected by broader global development going forward.
MARKET SHARE AND GROSS MARGIN ARE CONTINUING TO RISE IN THE NORDICS
Our position in the Nordic monopoly market is continuing to strengthen as we gain market share - our market share is now 28.6 percent in Sweden, 22.1 percent in Finland and in 7.1 percent in Norway in volume terms. Our success is largely due to the fact that we are quick to adapt our business and our range to prevailing trends. In our Finnish business, we launched the market's first voice-guided AI service for wine and food recommendations in the first quarter. During the quarter, we welcomed the German producer Reh Kendermann into our Swedish portfolio. They are known for the Black Tower brand and hold a strong position in white wines and rosé, two product segments where we are seeing a clear increase in demand.
MORE NEW CUSTOMERS AND INCREASING GROSS MARGIN IN ECOM
Our European e-commerce gross margin improved in the first quarter to 40.3 (39.8) percent, as a result of a positive product mix shift. However, the market as a whole remained subdued during the quarter, largely due to continued low consumer sentiment. Viva eCom's total sales therefore ended up at the same level as in the same quarter of 2024. In March, there were signs of a recovery in sentiment. This quarter is stable with positive organic growth, underscoring our expectation that the market will continue to stabilise. We continue to evaluate various customer acquisition channels within Viva eCom. During the quarter, we have seen positive results, with a slight increase in our customer base compared to the previous quarter. At the same time, we are continuing to strengthen relationships with our existing customers through our loyalty programme, which also contributes to increased value over time.
OMNIBUS IS CHANGING THE CONDITIONS FOR CSRD
Our work on aligning with the EU Corporate Sustainability Reporting Directive (CSRD) is progressing according to plan. Going forward, however, the 'Omnibus proposal' will change the conditions for reporting, although it is not yet clear how. We are continuing to work on our sustainability initiatives with CSRD as an external framework. The focus is on identifying what creates most value for us and for our stakeholders. Several areas are already well under control, while we are developing others step by step. We will continue to assess our activities carefully along the way.
INVESTING FOR THE FUTURE
Viva Wine Group's business model is largely based on long-term work on product development, well-balanced price adjustments and a range attuned to consumer preferences. Moreover, the ability to launch products widely across several markets provides important synergies and is a crucial success factor. Our business has developed positively in recent years, and to embark on the next phase of our growth journey we are now investing in developing our organisation, operational excellence and marketing, both in the Nordics and in eCOM. The focus on marketing aims both to drive sales in the short term and to build strong brands in the long term. These investments signify some increase in cost base in the short term but are important building blocks in being able to strengthen our position going forward.
I see the first quarter of 2025 as further confirmation that our priorities are the right ones, and that we are well placed for the rest of the year.
Emil Sallnäs, CEO Viva Wine Group
Stockholm, May 2025
Please see the full report in the attached pdf.
Publication and presentation
Viva Wine Group's interim report for Q1 2025 will be published at 8.00 am on 15 May 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/52342. 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
Viva Wine Group is the leading wine group in the Nordic monopoly markets, with a strong position in the European e-commerce market for wine. The Group consists of a collection of entrepreneurial companies with head office in Stockholm, developed through organic growth and strategic acquisitions. Viva Wine Group develops, markets, and sells both wholly owned and partner brands and offers affordable quality wines from all over the world to consumers in locations such as the Nordic countries, Germany, Switzerland, Austria, the Czech Republic, France, and the Netherlands. Sustainability is one of our foremost driving forces and we are a leader within certified ethical and organic wine. www.vivagroup.se/en
This information is information that Viva Wine Group is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-05-15 08:00 CEST.
