FY sales worse than warned for Lucas Bols
- Full-year net profits hit EUR11.7m (US$13.3m)
- Sales in 12 months to end of March slip by 6.5% to EUR72.6m
- Operating profits fall by 16% to EUR16.7m
Lucas Bols has completed its first full-year since launching an IPO in early-2015
Lucas Bols has seen its full-year sales fall more than expected, although the bottom line fared well against the year-prior's one-offs affected performance.
Sales in the 12 months to the end of March fell by 6.5% year-on-year, the company said earlier today. In late-March, the spirits and liqueurs producer, which owns the Bols and Galliano liqueur brands, forecast a 4% to 6% decline in full-year sales, with stock reductions in the US, Australia and South East Asia having hampered performance in the first half.
Net profits hit EUR11.7m in Lucas Bols first set of full-year results since the completion of its IPO. In the year-prior, net profits were weighed down by IPO-related finance costs, coming in at EUR0.2m.
Operating profits were down due to the declining sales coupled with increased marketing spend in the US and Russia.
"In the past year, we took several steps to support the medium-term growth of our brands," said CEO Huub van Doorne. "We introduced a number of new flavours and range extensions and optimised our route to market by signing important new distribution agreements and renewing several others.
"The past year has seen one-off stock reductions in a number of regions," van Doorne added. "Although this has impacted the company's results in the short term, we do see an improvement in the underlying in-market performance of these regions."
Looking forward, the company said it expects its Asia-Pacific performance to recover, with Western Europe set to "remain challenging". The US and emerging markets offer healthy growth prospects, Lucas Bols concluded.
To access the company's official results statement, click here.
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