Italian Wine Brands, revenues on a rise in 2022; profit falls

(Alliance News) - The board of directors of Italian Wine Brands Spa on Thursday reviewed and approved the draft financial statements as of December 31, 2022 reporting a net profit of EUR14.2 million down from EUR18.2 million in 2021.

Revenues amounted to EUR439.5 million up from EUR431.4 million in 2021. The sales growth momentum is driven by M&A transactions completed by the group during the year, Enovation Brands Inc. and Blackbeard. In particular, "with the acquisition of Enovation, IWB intended to fully incorporate its direct presence in supermarkets and the ho.re.ca. channel in the U.S. and Canadian markets, the most important for Italian wine. Instead, with the acquisition of Barbanera, the Group has increased its offer of premium wines - with particular reference to the ho.re.ca. channel, which until now had been less penetrated - and achieved a direct presidium in Tuscany with its own winery," the company explains in a note.

Restated Ebitda for 2022 is EUR37.2 million from EUR41.8 million in 2021. Raw material consumption as a percentage of sales increased to 67.6 percent from 67.0 percent in 2021 due to inflationary pressures on the costs of dry materials--glass, packaging, labels, capsules--occurred several times during 2022 and only partly reflected, progressively, in sales prices.

Costs for services show an increase in the incidence on sales revenue to 17.9% from 17.6% due solely to increased costs for utilities such as electricity and gas.

Personnel costs show a very slight increase from the previous year, to 5.6 percent from 5.0 percent, due to the greater portion of in-house production carried out by the group and the addition of new resources particularly in the sales area and the direct sales force.

As of December 31, 2022, the group had net financial debt of EUR129.5 million, up from net financial debt of EUR108.0 million as of December 31, 2021.

Italian Wine Brands' stock on Thursday closed down 0.9 percent at EUR22.10 per share.

By Chiara Bruschi, Alliance News reporter

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