- Strong cash generation led to further net debt reduction
Highlights full-year 2020/21
Revenue was negatively impacted by COVID-19, mainly as a result of on-trade closures, travel restrictions and destocking by distributors, and came in at € 57.3 million (down 32% year-on-year)
Depletions (sales by distributors) were down 16%, which should be seen in the context of the fact that over half of Lucas Bols’ business is normally conducted in the on-trade
Important markets like the UK, the US, France, Australia and China showed growth in depletions for the 2020/21 financial year despite the pandemic, while Emerging Markets returned to growth in March 2021
Retail-oriented brands such as Passoã, Galliano, Pisang Ambon and Nuvo performed strongly on the back of depletion growth in their core markets
The gross margin of 52.5% (down 420 bps vs. last year) reflects a different sales channel mix and lower production cost absorption
Strong cost saving measures led to an € 8.9 million (or 31%) reduction in total A&P and overhead expenses while investments were further optimised between brands and markets
Operating profit (excl. one-off items) amounted to € 8.6 million (-51.3%) while net profit (excl. one-off items) came in at € 3.3 million
After one-off items, including an impairment (€ 8.9 million) and a non-cash tax expense (€ 3.9 million), reported net loss was € 8.6 million
A strict focus on cash management resulted in a solid free operating cash flow of € 11.4 million (2019/20: € 15.8 million), enabling Lucas Bols to reduce its net debt by € 6.9 million to € 92.4 million
The Passoã acquisition was completed in December 2020. The payment of the purchase price (€ 71.3 million) did not affect the net debt position
A two-year extension of the temporary amendments to the financing arrangements was agreed with the banks in April 2021, facilitating the further execution of our growth strategy
In light of the impact of pandemic the Management Board decided not to propose a dividend for the 2020/21 financial year and to waive its entitlement to variable remuneration
Huub van Doorne, CEO of Lucas Bols: “The 2020/21 financial year was one of the most challenging years in the history of Lucas Bols. The implementation of lockdown measures around the world coincided more or less with the start of our fiscal year, and our on-trade exposure amplified the impact on our business. Significant destocking by distributors also negatively impacted revenue, leading to an overall drop in revenue of 32% for the year. We swiftly adapted to the highly uncertain and unpredictable circumstances by taking decisive mitigating actions. Strict cash and working capital management enabled us to further reduce net debt.
Alongside the measures taken to navigate this crisis we managed to stay innovative and even launched exciting new products, right on trend. Lucas Bols was able to grow a number of its key brands and continued to be cash-generative, even in an unprecedented year like this. The flexibility and unwavering commitment of the Lucas Bols team and our partners made this happen, and I am proud of that.
The vaccination programmes that are currently being rolled out globally provide comfort that the on-trade will gradually reopen in most key markets. We will increase our investments behind the brands on a market-by-market basis, with an unabated drive to bring great cocktails around the world and an accelerated focus on in-home cocktail consumption. The two-year extension of the amendments to the financing arrangements further facilitates this.
Although trends are clearly improving, the pandemic is not over yet. We therefore continue to pursue enhanced cost and cash control, part of the impact of which is structural. We have used the past financial year to further strengthen the foundation of Lucas Bols and I am confident that the unique profile and resilience of our brands will bring us back to profitable growth.”
Lucas Bols convenes Annual General Meeting
Lucas Bols N.V. (“Lucas Bols”), a leading global cocktail and spirits player, has published the convocation for the Annual General Meeting of Shareholders (AGM), including the agenda and the accompanying explanatory notes, and the annual report 2020/21, on its website www.lucasbols.com today.
The Annual General Meeting of Shareholders will be held on 8 July 2021 at 14:00 CET. Due to the COVID-19 pandemic and the ongoing safety measures imposed by the Dutch government, and in line with the Temporary Act COVID-19 Justice and Safety (the “Emergency-Act”), the AGM will only be electronically accessible for shareholders via a live audio-webcast.
On the Company’s website you will find further information with regard to registration and instructions about how to submit votes or questions prior to the AGM.
