Italian Wine Brands 1H24 Results Analysis
Excellent and ambitious management in a highly fragmented industry
Analysis of the 1H24 results of Italian Wine Brands, a company specialized in the distribution of premium wines in 90 countries. It went public in 2015, becoming the first public winery in Italy and through these years it has become the largest private one in Italy. It has a market cap of roughly €200MM and a net debt of €93MM.
You can find the investment thesis and financial model of this company, which we have followed since March 2021 (Enoitalia M&A), on our website
Outstanding results for Italian Wine Brands, despite the decline in sales (in line with Italian wine exports), with EBITDA increasing by 27.1% (improving the margin from 8.7% to 11.4%) and net profit growing by 98% to €9.1M.
H1 Revenue Decline: Group revenues decreased by -5.3% YoY to €191.2M (vs €201.6M estimated), despite a +15.7% sales growth in Italy.
EBITDA Surge: Adjusted EBITDA increased +27.1% to €21.9M (11.3% margin vs 8.7% in H1 2023), exceeding initial estimates.
Net Profit Growth: Net profit nearly doubled (+97.7% YoY) to €9.1M, aided by strong margins and lower borrowing costs.
Debt Reduction: Tremendous cash generation, reducing net debt 30% YoY to €108.1M (4.9x adj. EBITDA vs 8.9x in H1 2023).
Growth: IWB have multiplied EBITDA by 2.5 in 5 years, and they are going to be very close to €50MM in 2024 (EV €300MM).
Higher Margin: strong progression in margins driven by an optimised product mix and a significant reduction in the incidence of raw material consumption - Premium brand (around 20% of total sales) volumes rose by +9.6% in 1H24.
