Today, Viva Wine Group published its interim report for Q2, 2024. 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 exceeded our expectations, as did the gross margin and adjusted EBITA margin. However, EPS slightly underperformed our projections, in part due to negative effects from impairment of shares in other holdings of negative SEK 16m. The Nordics segment continues to stand out, with market share growth both year-on-year and sequentially. It also surpassed our expectations for gross margin and OPEX. Meanwhile, the eCom segment posted marginally positive growth, reinforcing the likelihood of a turnaround to positive year-on-year growth in the second half of 2024.

The initial market reaction to the report is expected to be positive.

• In Q2 2024, Viva Wine Group reported net sales of SEK 1,114m, corresponding to a 6.4% growth. Reported organic growth was 6.6.%. Our forecast for the quarter was SEK 1,073m.
• The Nordic segment increased net sales organically by an impressive 8.0% on an underlying market with negative volume growth of 6.6. The Growth of 8.0% exeeded our expectation of 5%. The Nordics segment benefited from logistics problems affecting competitors.
• Organic growth for the Viva eCom segment was 0.1% – an indication of a trend shift. Our expectation was negative 8%.
• Gross profit calculated on net sales decreased by 11% in Q2 2024, year-over-year, to SEK 227m. Our forecast was SEK 211m. The gross margin improved by 0.8 percentage points to 20.4%. Our forecast was 19.7%.
• Year-over-year, adjusted EBITA improved by an impressive 37.9% to SEK 107m, corresponding to a margin of 9.6%. Our forecast was SEK 86m, equivalent to a margin of 8.0%. The difference is in large due to solid performance in the Nordics with higher-than-expected gross margin and somewhat lower OPEX.
• Earnings per share amounted to SEK 0.38, corresponding to a negative growth of minus 17%. We forecasted earnings per share of SEK 0.39.

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

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