Sharpened brand, market and cocktail focus to capture growth momentum
Highlights first half-year 2021/22
Revenue came in at € 45.6 million, nearly on par with pre-COVID-19 H1 2019/20, and a strong year-on-year growth of 70%, mainly as a result of the continued reopening of the on-trade, positive brand momentum across key markets and a favourable comparison base
Excellent performance in the US: revenue tripled vs. the same period last year and showed an accelerated growth of 59% vs. H1 2019/20 (pre-COVID-19)
Strong recovery was reported in most markets, except for Japan and Southeast Asia, and in Travel Retail, where restrictive measures continued to negatively impact performance
Depletions (sales by distributors) were up 33% compared to H1 2020/21 (+6% vs. H1 2019/20), reflecting a strong in-market performance of our Global Cocktail Brands: Bols Cocktails, Passoã and Galliano
The gross margin was 56.6%, in line with last year
Operating profit more than doubled to € 11.5 million (€ 5.3 million in H1 2020/21), while net profit came in at € 7.7 million (€ 1.9 million in H1 2020/21). Targeted structural overhead cost savings were achieved
Continued focus on cash management resulted in a strong free operating cash flow of € 11.4 million, enabling an important net debt reduction of € 8.9 million to € 83.5 million as at 30 September 2021
Management implemented a sharpened brand, market and cocktail-focused operating model, and consequently increased the revenue growth target for the Global Cocktail Brands to 4-5% per annum
The company launched Bols Ready-to-enjoy Cocktails in the US and the Netherlands in October to leverage the in-home cocktail consumption trend. The signature Bols cocktails come in innovative Bols Cocktail Tubes and multi-serve bottles
With the start of Maxxium BeLux in October, Lucas Bols now controls the distribution of around 40% of its global revenue
Huub van Doorne, CEO of Lucas Bols: “Although we continue to operate in an uncertain environment we are pleased to see that the underlying in-market performance is back to – and in a number of key markets even ahead of – pre-COVID-19 levels. The revenue growth of 70% versus last year underpins the strong rebound. As the on-trade gradually reopened and our enhanced retail performance was sustained, our brands experienced strong consumer demand, as demonstrated by robust depletion trends. The growing popularity of cocktails and mixology, including the accelerating trend of in-home cocktail consumption, are right at the heart of our Global Cocktail Brands proposition.
The Passoã brand is delivering beyond expectations in many key markets: its performance has been spectacular. Substantial growth is also noted for Bols Cocktails and Galliano. The US market is performing exceptionally well across these brands: a true testament to the strength of our distribution platform there.
To fully capture the growth momentum, we increased our strategic focus on our Global Cocktail Brands: Bols Cocktails, Passoã and Galliano. In addition, we further tailored our market approach to the maturity of the cocktail culture in each respective market. This ensures optimal in-market execution of our growth strategy.
We intensified our direct-to-consumer focus along with bartender engagement. The company’s online presence and retail proposition are key elements of that focus. I am very proud of the recent launch of our Bols Ready-to-enjoy Cocktails: a new proposition that will inspire consumers by bringing home the magic of cocktails.
Our innovative Bols Cocktail Tubes enable us to tap into the rapidly-growing category of ready-to-serve cocktails in a unique way.
We have also learned lessons from the COVID-19 pandemic. Our disciplined focus on costs and cash remains in place, resulting in high cash generation and a substantial reduction in net debt.
We are confident that our leading brands on the international cocktail market will capture the momentum to drive long-term sustainable growth.”
211118 Lucas Bols press release - Half-year results 2021-22.pdf
211118 Lucas Bols persbericht - halfjaarcijfers 2021-22.pdf
Op de resultaten van Lucas Bols wordt te Amsterdam op gedronken EUR 11,48 +1,34 vol. 108.486