Equity research Viva Wine Group, Q1 2025: First impression

Today, Viva Wine Group published its interim report for Q1 2025. Below is a compilation of our first impressions of the outcome, including deviations from our estimates. The company will host a webcast with a telephone conference today at 11:00 a.m.

Today, Viva Wine Group published its interim report for Q1 2025. Below is a compilation of our first impressions of the outcome, including deviations from our estimates. The company will host a webcast with a telephone conference today at 11:00 a.m.

Viva Wine Group’s sales figures were slightly below our expectations. Revenue contracted somewhat for both segments, affected by calendar headwinds. There is currently some uncertainty about how much of the decline can be explained by subdued customer sentiment and how much is due to calendar effects. Easter sales will be realized in Q2. Viva says the European e-commerce market remained subdued due to weak consumer sentiment, but signs of recovery appeared in March.

Today, Viva Wine Group also announced the acquisition of 89% of Delta Wines Holding 2 B.V. (Delta Wines), the leading wine distributor in the Netherlands. Delta Wines also operates in several other markets, including Poland, the Czech Republic, Belgium, Finland, and Norway.

In 2024, Delta Wines reported net revenue of EUR 168 million, with an adjusted EBITDA margin of 6.8%. The purchase price of approximately EUR 57 million, financed through a new long-term loan facility, and corresponding to an EV/EBITDA multiple of 5.9x. The transaction is expected to be completed in May 2025.  As stated in the press release: “Combined, Viva Wine Group and Delta Wines generate annual net revenue exceeding SEK 6 billion, with a combined EBITDA margin of approximately 8.4%.” Synergies are expected to be realised over time.

Beyond the financials, this is a strategically important move that strengthens the company’s position both within and outside the Nordic region.

We anticipate the acquisition of Delta Wines to generate a net positive effect on the share price.

• In Q1 2025, Viva Wine Group reported net sales of SEK 895m, corresponding to a 2% decline. Our forecast for the quarter was SEK 916m.
• The Nordic segment decreased net sales organically slightly by 1% on an underlying monopoly market with a markedly negative volume decline of 10%, compared to our expectation of +1%. Sweden was the main deviation from our forecast.
• Sales for the Viva eCom segment were flat by 3%, just slightly below our expectation.
• Gross profit calculated on net sales increased by 10 % to SEK 190m. Our forecast was SEK 199m. The gross margin improved by 1.9 percentage points to 21.2% due to price adjustments in 2024.
• Adjusted EBITA fell by 12% to SEK 50m, corresponding to a margin of 5.5%. Our forecast was SEK 69m, equivalent to a margin of 7.5%. The main deviation from our forecast is higher OPEX than anticipated, related to investments, e.g., organization and marketing.

We intend to provide an updated analysis of Viva Wine Group shortly. Read the last research update report here.

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