Viva Wine Group AB (VIVA) Earnings Call Transcript & Summary

Welcome to Viva Wine Group Earnings Call for Q2 2026. [Operator Instructions] Now I will hand the conference over to CEO, Emil Sallnäs; and CFO and Deputy CEO, Linn Gäfvert. Please go ahead.

Good morning, everyone, and welcome to our Q2 2026 presentation. My name is Emil Sallnäs, and I will together with our CFO and Deputy CEO, Linn Gäfvert presents today. This is today's agenda. And before we move on to the quarterly update and financials, I will hand over to Linn.

Thank you, Emil. I would like to start with an update about the ongoing bid process. On the 29th of June, Riesling Ventures announced a public takeover offer to the shareholders of Viva Wine Group. In connection with this, the independent bid committee of Viva Wine Group announced that they recommend the offer. The acceptance period is currently ongoing and is ending on the 28th of August. In this call, we will only focus on the quarterly results and no questions will be answered regarding the bid or the process.

So now let's move on to the Q2 update and our performance summary. Looking at Q2, we reported an increase in net sales of 21%. This growth was driven by our latest acquisitions, Delta Wines and Alpha Brands. Organic growth was minus 3.7% in the quarter, with sales negatively impacted by the timing of Easter and by geopolitical uncertainty, which weakened the consumer sentiment in our markets. Adjusted EBITDA increased year-on-year, mainly due to the latest acquisitions with an EBITDA margin of 6.7%. In the quarter, we continued to deliver strong operating cash flow. Now let's look in more detail on the financial performance. I will hand over back to Linn.

So looking at net sales. The growth in net sales of 21% is mainly driven by the acquisition of Delta Wines and Alpha Brands. As Emil mentioned, the organic growth of minus 3.7% was affected by the timing of Easter and by a weak consumer sentiment. In our B2B segment, we continue to be the clear #1 in the Nordics, and both Delta Wines and Alpha Brands performed well. B2C was affected by low consumer sentiment. Adjusted EBITDA increased versus last year, mainly as a result of the latest acquisitions. Higher net sales and improved gross margin percent is partly offset by higher OpEx. The adjusted EBITDA margin reached 6.7% in the quarter. The cash flow from operating activities was strong and in line with our operating performance. Working capital increased in Q2, driven by seasonal effects according to plan. Dividends is paid in 2 installments. The first one was paid during Q2 and the next is scheduled for November pending the outcome of the bid process. The positive effect from financing activities mainly reflects changes in our financing structure during the quarter, the use of bank overdrafts and repayments of term loans according to plan. Our net working capital to net sales continued to develop well and reached 9.0% in the quarter, very strong. We ended the quarter with a net debt-to-EBITDA ratio of 2.6. So now over to performance by segments. Total net sales in our B2B segment increased with 25% in the quarter, and the increase versus last year is mainly driven by the acquisition of Delta Wines and Alpha Brands. Our market share in the Nordic monopoly markets remained stable at a high level compared to the same quarter previous year. This confirms our position as the market leader in wine. The organic growth of minus 4% was affected by the timing of Easter and the low consumer sentiment. The gross margin in B2B was stronger than in the same quarter previous year despite increased freight costs and the consolidation of Delta Wines, the gross margin was supported by positive currency effects, price adjustments and product mix. The adjusted EBITA margin reached 7.6% in the quarter. The underlying business strengthened its EBITDA margin compared to last year. In the B2C segment, net sales decreased and organic growth was negative with 1.3% due to low consumer sentiment. We continue to build on our customer base and the total number of active customers increased year-on-year. Numbers of orders also increased and was driven by both new and existing customers. Adjusted EBITDA decreased versus last year, primarily driven by increased investments in marketing to attract new customers. The adjusted EBITA margin of 3.7% was therefore down from last year.

Before the Q&A session, I will hand the -- sorry.

Before the Q&A session, I will hand over to Emil for his final remarks and summary of this quarter.

To summarize, the quarter's growth was driven by acquisitions, Delta Wines and Alpha Brands both continue to perform well. We once again confirmed our position as market leaders in wine in the Nordic monopoly markets as our market share remains stable at a high level. I'm also happy to say that in June, the first month in which Delta Wines was fully integrated, the company contributed positively to organic growth. In the B2C segment, the lower consumer sentiment affected the whole market, but our estimation is that we continue to outperform the market. We have a strong position to build on, even with an uncertain world around us, I'm generally optimistic about where we are headed. We're executing on our strategy with discipline. We have a business model that's proven itself over time, and we keep optimizing how we operate. Together, these are the key factors that will keep driving our growth and our results. And with that, it's now time for the Q&A session.

[Operator Instructions] The next question comes from Niklas Elmhammer from Carlsquare.

I have a question regarding organic growth in the Nordics. Do you have an estimate of the market growth during Q2?

For the market. For the quarter, the market is down with approximately 4% for the market in the Nordics.