Financial Results of Novabev Group for 2024

Novabev Group (MOEX: BELU), the leading alcohol company in Russia, announces the IFRS consolidated financial results for 2024.

Revenue for the period increased by 16% to RUB 135.5 billion. Gross profit grew by 12% to RUB 48.4 billion, EBITDA remained almost unchanged at RUB 18.7 billion, net income decreased to RUB 4.6 billion, while excluding one-off non-operating expenses it amounted to RUB 5.9 billion¹.

¹ Net income excludes IFRS 16 changes and the impact of income tax rate changes, which are non-cash.
² Adjusted EBITDA excludes the impact of lease payments. Net financial debt is calculated excluding lease payments.

According to the results of 2024, Novabev Group is the leader in the production of spirits, the No. 1 supplier in terms of sales in all channels, including federal key accounts, as well as the main importer of Wine and Spirits in Russia demonstrated a 16% net revenue growth to an all-time high of RUB 135.5 billion, which confirms the correctness of the chosen development vector. Revenue growth was driven by the expansion of WineLab — the number of stores increased by 23% to 2,041, total sales grew by 27.5%, traffic by 11.2%, average ticket by 14.6%, like-for-like sales by 11% and click & collect online sales by 39% — as well as the focus on premium brands in the Novabev Group’s portfolio, which together enabled a strong 12% increase in gross profit to RUB 48.4 billion. In Russia, the fastest growing brands are Beluga (+9%), Orthodox (+30%), Belaya Sova (+36%), Arkhangelskaya (+6.5%) vodkas, Devil’s Island rum (+17.5%) and Tête de Cheval (+73%) and Golubitskoe Estate (+40%) wines, the main driver in spirits was Torres Brandy (+13%) and in wines Cono Sur (+47%).

EBITDA remained almost the same at RUB 18.7 billion. This is mainly due to the accelerated pace of new WineLab store openings in the second half of 2024, which will have a positive impact on this financial indicator when they reach maturity in 2025.

The EBITDA margin declined to 13.8%. The main pressure came from rising inflation of costs in all segments, a high proportion of new WineLab stores that have not yet reached operational efficiency and continued labor market tensions.

In response to the ongoing turbulence in the debt markets, the group has achieved a record low Net financial debt to EBITDA IAS 17 ratio, excluding the lease liabilities, of 0.9x at the end of 2024. At the same time, the group’s net debt to EBITDA ratio, including lease liabilities, remained at a comfortable level of 1.9x. In parallel, the company actively invested in the accelerated opening of new stores and the development of the IT infrastructure, which resulted in a significant increase in lease liabilities. Nevertheless, at the end of 2024 the company’s cash position, including deposits, amounted to 22.5 billion rubles. This is a record for the Novabev Group and provides the necessary comfort in conditions of financial instability.

The year was marked by a tight monetary policy of the Central Bank of the Russian Federation and high borrowing costs. As a result, the group’s interest payments increased by 77% and net income decreased by 43% to 4.6 billion rubles.

Because of the significant impact on net income of the changes related to the accounting of IFRS 16 lease obligations (RUB 0.97 billion) and income tax rates charged on the provisions (RUB 0.39 billion), which are of non-cash nature, the group reports an adjusted net income of RUB 5.9 billion for a better understanding of the actual results.

Due to efficient operations and focus on optimization of working capital in 2024, Novabev Group demonstrated significant growth of free cash flow, which exceeded RUB 18 billion (+141% compared to 2023) with active investments in opening new stores. The record free cash flow was positively impacted by new supply chains, work on store assortment and the introduction of new technologies in inventory management.

Increased production capacity, improved operational efficiency, a focus on product quality and labor safety confirm Novabev Group’s commitment to long-term sustainable growth. The expansion of WineLab, successes in e-commerce and the WINCLUB loyalty system, together with an increased focus on customer service levels, underline the group’s commitment to customer focus and innovation. In 2025, the Novabev Group continues to seek new points of growth, remaining the flagship of the country’s alcoholic beverage industry.

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