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Spirits sales tumble for Anora in 2024
Overall net sales for Anora Group fell by 4.7% in 2024, as its spirits segment dropped by 4.2%.
The Helsinki-based spirits company includes Finnish vodka Koskenkorva and Swedish aquavit OP Anderson in its portfolio.
Net sales in 2024 for the group dropped to €692 million (US$718.5m) in 2024, in comparison with €726.5 (US$754.4m) in 2023.
Earnings before interest, tax, depreciation and amortisation (EBITDA) were worth €68.9m (US$71.4m) last year, which in contrast was up on the 2023 figure of €68.2m (US$70.7m) by 1%.
Looking separately at how spirits did for the year, net sales in this segment reached €227m (US$235.6m), marking a 4.2% decline on 2023’s €237m (US$246m) total.
Spirits’ comparable EBITDA was also down by 5.7% following a decline from €40.3m (US$41.8m) in 2023 to €38m (US$39m) in 2024.
Net sales for spirits were in decline across all markets Anora reaches – counting Norway, the Baltic countries, Denmark, and Germany, plus global duty free and travel retail sales – with the exception of Sweden.
The EBITDA decline in 2024 was attributed to ‘lower volumes, declining monopoly markets and higher operating expenses due to targeted increase in [advertising and promotional] spend’.
Assessing the performance, CEO Jacek Pastuszka, who will retire from the role once a replacement has been found, said: “During the period, we progressed well on the mid-term agenda established in late 2023, without losing sight of our long-term ambitions and aspirations.
“We continued to improve the marginality of our beverage business and strengthen the balance sheet by increasing the share of margin accretive businesses as well as focusing on pricing and revenue management, stable operating expenses and net working capital reduction.
“As a result, all our segments improved their gross margins both in the fourth quarter and during the full year in 2024.”
If spirit sales were slow, wine for the company showed encouraging signs. While wine’s net sales were down by 3.4%, the segment was up by 5.6% in gross profit. Additionally in Q4, gross profit for the wine division was up 2.1%.
Q4 performance
Looking at how Anora closed out the year, the company fared better in the final months of 2024, but still suffered an overall decline. Its net sales were at €205.3m, down by 2.8% after amassing €211.2m (US$218.9m) in the same period in 2023.
EBITDA for Q4, meanwhile, was up by 6.7%, after going from €27.1m (US$28m) in 2023 to €28.9m (US$29.9m) in 2024.
For spirits, the results were difficult reading again for the group – going from €72.5m (US$75.2m) in Q4 2023 to €68.9m (US$71.4) in the same period last year, amounting to a 4.9% decrease.
Sales in Finland were down by 11%. Finland is viewed as a ‘declining market’ by the group because of the change in Finnish alcohol legislation where less people are visiting Alko (the country’s alcoholic beverage retailing monopoly), and are opting for grocery stores instead.
Norway was also a weak spot, with decreased net sales of 11.7%. This was reasoned for challenges in Cognac and brandy due to a ‘partner loss’, and in lower volumes for gin.
Sweden showed promise, however, with a net sales increase of 1.4%.
Beyond the results, Anora cited new product launches as a highlight for the period, including 14 different SKUs of aquavit, a winter apple flavour of Koskenkorva and a 2025 edition of the vodka’s brand’s annual Jaloviina premium expression.
Addressing the fourth quarter, CEO Pastuszka said: “Net sales in the fourth quarter declined by 2.8% to €205.3m, primarily due to lower volumes in the spirits segment.
“In the wine segment, Anora regained its overall market leadership in Finland including grocery, due to the successful introduction of up to 8% ABV wines in grocery stores.
“In the spirits segment, Sweden delivered net sales growth, while net sales declined in all other Nordic countries.”
2025 outlook
For the year ahead, the company said it expects volume sales in key markets to be ‘relatively flat’ compared with 2024, and for value, markets are predicted to ‘grow slightly’.
Anora expects its comparable EBITDA to be between €70-75 million.
Pastuszka added: “I would like to thank our customers, partners, shareholders and employees for their contribution during our journey so far. While I have communicated to the board of directors of Anora my wish to retire once the new CEO is nominated, we are sustaining our focus on improving the marginality of our beverage business through active mix and revenue management.
“We also aim to further strengthen our cash position and balance sheet by reducing working capital and improving inventory turnover. We seek to restore organic net sales growth in the wine and spirits segments by concentrating our efforts on the largest brands and partnerships.
“I am convinced that these actions and the progress achieved so far will allow us to get back on track in executing Anora’s ambitious transformation strategy and deliver on our long-term financial targets.”
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