Globus Wine A/S

Revenue increased by DKK 86.8 million to DKK 813.2 million against DKK 726.4 million last year. Cash flows from operating activities were positive by DKK 103.5 million. Profit before tax decreased by DKK 50.9 million to DKK -9.3 million against DKK 41.7 million last year. Profit after tax decreased by 39.9 million to DKK -7.0 million from DKK 32.9 million last year. Equity of DKK 49.4 million as per 31. December 2022 is DKK 20.1 million lower than last year. Management considers the top line result of the Company overall satisfactory, however unsatisfactory when considering the bottom-line as the expectations were not met.
Letter from the Board of Directors
Globus Wine A/S was acquired by Anora Group Plc in July 2022. Since the acquisition, Globus Wine and Anora have worked together to identify synergies and create a plan for how the unique competencies of Globus Wine can be integrated and exploited in Anora. In March 2023, it was announced that Anora will establish a Wine Excellence Center, with centralized production of all wine for the Anora Group. This will be placed at the current Globus Wine facilities in Køge. Preliminary project work has been initiated to scope this move.
The 2022 financial bottom-line result
The unsatisfactory bottom-line result of 2022, was mainly driven by the following 3 factors:

1) An adjustment of the inventories at year-end of DKK 50 million was made, which is due to registration errors in the logistics module of the ERP system, whereby the costs of goods sold was recognized at a too low value in the finance module of the ERP system.

2) Driven by the top line growth and the future continued growth derived from the Anora acquisition, Globus Wine invested heavily in people, and added capacities to fuel this growth.

3) In spring 2022, a lock-down in the US Port workers was expected. This increased the risk of Globus Wine not being able to import bulk wine to fuel the operation. Due to this it was decided to purchase a significant amount of additional bulk containers to counter the risk and get it shipped immediately. Ultimately this led to the congestion of the value chain, as everything arrived at once.
Our top line strategy is working
We continue to see growth in all key segments, and a strengthening of our customer relations. In terms of sourcing, we continue to add new markets, producers and knowledge, to further strengthen our leading service platform and value proposition to customers. In marketing, our continued strengthening of market insight and local market understanding provide a strong position to help our Retailer customers build value with new concepts and products in the wine category. We have invested significant effort and costs to deliver on our customer promises.
Going forward
We will in 2023 continue and intensify the strategic focus on building brands and realize organic growth in the Northern European markets while expanding our filler services towards selected strategic partners. We expect to continue seeing a significant efficiency increase in production due to the continued collaboration with Mantec and a return to healthy profit margin levels as we continue to serve and grow with our customers, with a joint ambition of further adding value and innovation to the wine category. The benefit of being under the Anora umbrella will materialize and lead to increased volume going through our operation. Another positive impact will be the positive economy of scale impact on purchasing.