Marie Brizard Wine and Spirits is stepping up moves to save costs after its profits more than halved in the first half of 2025.
In its first-half results, the group saw net profit decrease 60% year-on-year to €2.6m ($3m). EBITDA was down over 30%, at €5.9m.
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The business said the drop in net profit was driven by “the decline in operating profit and financial income, which, although still positive, followed the overall decrease in interest rates over the period on the group’s cash investments”.
In July, the business revealed its revenues had dropped 8.5% to €86.6m and sank 13.7% in the second quarter.
In a statement on its first-half earnings yesterday (25 September), Marie Brizard CEO Fahd Khadraoui said the declines in the first half came “amid sluggish market conditions”.
He noted that the dip was “mainly due to the lack of price agreements for our William Peel Scotch brand with some customers in France, as well as stock adjustments imposed by some distributors, mainly in the United States”.
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By GlobalDataThe chief executive said the group has rolled out a “cost control programme” in its second half of the year “to safeguard our profitability and mitigate the impact of ongoing trade tensions”.
Khadraoui added: “I remain confident in our people’s ability to face these headwinds and reach the necessary agreements with our customers to ensure a sustainable and balanced business recovery.”
The group’s international business saw EBITDA increase by €0.6m in the first half to €4.7m, but profitability in its US market “plummeted” due to “the sharp decline in sales”. Profitability in its Spanish and Lithuanian subsidiaries however helped to “more than offset” this, it said.
Mari Brizard’s domestic sales also saw EBITDA drop nearly 50% to €3.7m in the first half of 2025, due to a dip in sales and hike in the cost price of matured spirits.
In its outlook, the business said 2025 would “be a year of transition”.
In response to the inflation of price of matured spirits, such as Scotch and Cognac, Marie Brizard has decided to try to up prices.
The company has also implemented “measures to protect profitability” by focusing “on reducing certain expenses”, as well as “accelerating productivity projects”, plus “implementing appropriate commercial initiatives with positive short-term effects”.
Khadraoui said that its price adjustments related to inflation in matured spirits costs “cannot be avoided”.
“Meanwhile, we are maintaining constructive dialogue with those reluctant to accept the adjustments in order to achieve balanced commercial terms favourable to all parties,” he added.
According to the company’s statement, its export markets remain stable with some European markets struggling. Marie Brizard said that it returned to growth in the second quarter in Canada, with strong growth in Poland, but a continued decline in shipments to the Asia Pacific region.”
