analyst presentation annual results 2017/18 7 june 2018 lucas bols analys… · 19.9% 20.0% 13.4%...
TRANSCRIPT
Analyst presentation annual results 2017/18
7 June 2018
Disclaimer
DISCLAIMER THIS PRESENTATION may contain forward looking statements. These statements are based on current expectations, estimates and projections of Lucas Bols’ management and
information currently available to the company. Lucas Bols cautions that such statements contain elements of risk and uncertainties that are difficult to predict and that could cause actual
performance and position to differ materially from these statements. Lucas Bols disclaims any obligation to update or revise any statements made in this presentation to reflect subsequent events or
circumstances, except as required by law.
Certain figures in this presentation, including financial data, have been rounded. Accordingly, figures shown for the same category presented in different tables may vary slightly and figures shown
as totals in certain tables may not be an exact arithmetic aggregation of the figures which precede them.
2
FY 2017/18
1. Lucas Bols at a glance
2. Highlights
3. Operational highlights
4. Financials
5. Outlook
3
Lucas Bols at a glance: Revenue +15%, EBIT +30%
4
18.5%
22.7%
EBIT*
€m
Revenue
€m
19.9%
20.0%
13.4%
46.7%
Strong offering of global brands and regional brands
Regional brands
Liqueurs
Value brands
Dutch Jenever portfolio70,2%
Regional brands
€ 10.2 mln.
Global brands
€ 46.9 mln.
29,8%76%
24%
5
Revenue split 2017/18Global brands
Italian LiqueursWhite Spirits
Passoã
Bols Liqueurs range
Gross Profit split 2017/18
Regional brands
€ 22.3 mln.
Global brands
€ 69.9 mln.
82%
18%
Sold in more than 110 countries around the world
6
Group revenue per geographical segment based on FY 2017/18
Lucas Bols’ mission & strategic framework
7
Mission Lucas Bols
We create great cocktail experiences around the world.
Strategic framework Lucas Bols
• To strengthen and grow our global brands in the international cocktail market
• To maintain the competitiveness of our regional brands in regional and local markets
Build the
brand equity
Lead the
development of
the cocktail market
Accelerate global
brand growth
Leverage
operational
excellence
FY 2017/18
1. Lucas Bols at a glance
2. Highlights
3. Operational highlights
4. Financials
5. Outlook
8
Highlights FY 2017/18
9
Revenue
Gross margin
Net Profit
Dividend
Regional
performance
EBIT
Gross profit increased 18.0% and gross margin was up 190 bps to 62.0%, attributable both to Passoã and
to margin growth of the global brands
Normalised net profit increased 20.1% to € 14.7 million compared to normalised net profit of € 12.3 million
in 2016/17. Reported net profit of € 20.4 million, includes a one-off tax benefit of € 5.6 million in 2017/18
Proposed final dividend of € 0.25 per share, putting total full-year dividend at € 0.60 per share, up 5.3%
compared to 2016/17
EBIT increased 29.6% to € 23.6 million at an EBIT margin of 25.6%
Western Europe reported 27.8% growth in revenue, mainly on the back of Passoã and North America
showed growth of 3.1%. Emerging Markets reported revenue was up 5.1% and Asia-Pacific returned to
growth with a 1.3% rise in revenue.
The US market showed strong organic revenue growth of 11.5%
Revenue of € 92.2 million, an increase of 14.5% compared to last year, driven by the full year consolidation
of Passoã (+1.8% organically)
Brand
performance
Global brands reported 21.0% higher revenue, with organic growth of 3.3%, while the regional brands’
reported revenue was down 1.8%
FY 2017/18
1. Lucas Bols at a glance
2. Highlights
3. Operational highlights
4. Financials
5. Outlook
10
Operational highlights FY 2017/18
11
Bols Liqueurs: low single digit revenue growth
• Two new flavours developed and introduced, Cucumber and Ginger
• Good performance in retail markets Germany and UK
• Retail position US significantly strengthened by two large retail chain listings in the last quarter
• Introduction of three new flavours in the US in March 2018
• New low alcohol drink strategy with ‘Low Bols’ concept launched
Bols Genever and Damrak Gin: double digit revenue growth
• Bols Genever new brand identity and drink strategy finalized
• Damrak Gin recorded strong growth in the US and the Netherlands
• Bols Vodka is still experiencing pressure in Canada due to fierce price
competition, while in its main markets such as Argentina and the Netherlands
the brand continues to perform well
12
Operational highlights FY 2017/18 - continued
Italian Liqueurs performed in line with last year
• Further roll-out of the Galliano range in the US
• New range extensions of Galliano in various new markets
• Revival of the Galliano Hot Shot in Sweden supported by events and
brand activations
• New brand identity Vaccari well received in key markets
The Passoã brand performed well, in line with expectations
• First full year of inclusion in the global brands portfolio of Lucas Bols
• Strong growth in the UK on the back of the Porn Star Martini cocktail
• Also strong performance in the Netherlands and Switzerland
• Expansion to 35 states in the US
Bols Genever
Bols Genever 100% Malt Spirit – launched in September 2017 in various
markets, including the US
New brand identity and drink strategy takes Bols Genever to the next
level as the original spirit of Amsterdam
13
Red Light Negroni – signature drink Bols Genever
Ambassadors promoting Bols Genever in key cities around the world
Bols Genever Barrel Aged introduced in the Netherlands
Double digit revenue growth driven by the US and the Netherlands
Passoã is clearly delivering on its promise
Passoã is successfully integrated into the Lucas Bols organisation
The commercial organisation has taken over all distribution contracts, and new
agreements with distribution partners were signed
Lucas Bols USA took over the distribution of Passoã from Rémy Cointreau and
expanded the distribution from 15 states to 35 states at the end of March 2018
Strong new visual identity and campaign were developed and implemented
New ‘fresh’ campaign activated in retail markets, including France and Belgium
Porn Star Martini cocktail a continued success in the UK, also launched in other
markets such as the US and the Netherlands
Passoã was launched in a number of African countries and in Eastern Europe in
H2 2017/18, further expansion is planned for 2018/19
14
Lucas Bols USA
Nuvo was reintroduced in the US in the spring of 2018 by our own organisation.
Strong organic revenue growth of 11.5%
Damrak gin - official gin of Delta Sky clubs as of 1 July 2017
Significantly strengthened the retail position of Bols Liqueurs with new listings in two
large retail chains
Bols Liqueurs Range – three new flavours added; Pineapple Chipotle, Mango and
Ginger
15
Awards in the USA
16
Wine & Spirits Wholesalers of America (WSWA)
2018 Best Liqueur of show & Double gold
Wine & Spirits Wholesalers of America (WSWA)
2018 Best Genever of show & Double gold
Nuvo
17
In December 2017 Lucas Bols signed an agreement regarding a strategic
partnership for the sparkling liqueur brand Nuvo
Created in 2007, Nuvo is made of vodka, sparkling wine and a blend of fruit
nectars. The brand is primarily consumed by women and is mostly sold in the
retail
The transaction fits within our asset-light business model as it strengthens the
company’s existing distribution platform with limited additional overheads
required
In the spring of 2018 Nuvo is reintroduced in the US in 10 selected states by
Lucas Bols USA
Nuvo will be supported by strong retail activation programs
Regional brands
18
Lucas Bols maintained its strong market-leading position in the Dutch genever and vieux segment
In Western Africa distribution of Henkes Gin and Henkes Whisky was expanded
The distribution network in Southern Africa was further strengthened resulting in good growth on the back of a solid performance by
Bols Brandy
Positive developments offset by significantly lower sales of concentrates in the Southern part of Africa due to a regulatory change
and a weaker performance of our regional liqueurs
Kontiki Sour Spiritz was introduced in the Netherlands in January 2018
FY 2017/18
1. Lucas Bols at a glance
2. Highlights
3. Operational highlights
4. Financials
5. Outlook
19
Strong revenue and EBIT growth
Highlights
Revenue increase of 14.5% compared to last year (+1.8% organically) driven by
Passoã
Gross margin was up 190bps attributable to Passoã and margin growth of the
global brands
A&P as a percentage of revenue amounted to 16.6%, as we continue to invest in
global brands that show strong growth potential in various strategic markets
EBIT increased 29.6% to € 23.6 million with the EBIT margin coming in at 25.6%
Income taxes included one-off tax benefits in both years, € 5.6 million in 2017/18
and € 3.2 million in 2016/17
Normalised net profit increased 20.1% to € 14.7 million (EPS of € 1.18) compared
to normalised net profit of € 12.3 million in 2016/17 (EPS of € 0.98)
20
* at constant currencies, excluding one-off items and the first eight months of Passoã in 2017/18
Reported (in €million) FY 2017/18 FY 2016/17Reported
growth
Organic
growth*
Revenue 92.2 80.5 14.5% 1.8%
Cost of sales -35.1 -32.1 9.3% 0.0%
GROSS PROFIT 57.1 48.4 18.0% 3.1%
Gross margin % 62.0% 60.1% ## 200.1%
D&A expenses -34.5 -32.4 6.5%
OPERATING PROFIT 22.6 16.0 41.3% 43.1%
Operating margin % 24.5% 19.9% ## 460.1%
Share of profit of JVs, net of tax 1.0 2.2 -55.3%
EBIT 23.6 18.2 29.6% 36.6%
EBIT margin % 25.6% 22.7% ## 464.4%
Finance costs -3.5 -2.9 20.4%
PROFIT BEFORE TAX 20.1 15.3 31.4%
Income tax expense 0.3 -0.2 -216.3%
PROFIT FOR THE PERIOD 20.4 15.1 35.5%
Earnings per share 1.63€ 1.21€ 35.5%1.64€
Global brands
Highlights
Reported growth of the global brands is mainly attributable to the
addition of the Passoã brand. Organically the global brands were
up 3.3%
Gross margin rose significantly by 300 bps to 67.1% (2016/17:
64.1%) due to both the positive impact of Passoã and to margin
growth of the other global brands
EBIT increased 28.3%, resulting in an EBIT margin of 42.2%
21
-0.6
Δ Global
brands
+28.3%
Δ Foreign
exchange
effect
FY 2016/17
7.7
FY 2017/18Badwill
FY 2016/17
29.5
23.0
-0.5
EBIT development (in €m)* at constant currencies, excluding one-off items and the first eight months of Passoã in 2017/18
Reported (in €million) FY 2017/18 FY 2016/17Reported
growth
Organic
growth*
Revenue 69.9 57.8 21.0% 3.3%
Cost of sales -23.0 -20.7 10.9% -3.6%
GROSS PROFIT 46.9 37.0 26.6% 7.2%
Gross margin % 67.1% 64.1%
D&A expenses -17.7 -14.6 20.6% 9.5%
% of revenues -25.3% -25.3%
OPERATING PROFIT 29.2 22.4 30.5% 5.6%
Operating margin % 41.8% 38.8%
Share of profit of JVs, net of tax 0.2 0.6
EBIT 29.5 23.0 28.3% 6.1%
EBIT margin % 42.2% 39.8%
Regional brands
Highlights
EBIT decreased 18.5%, explained by lower gross margin as
well as the effect of the one-off gain of € 0.9 million in FY
2016/17
Revenue slightly down compared to last year
The gross margin decreased by 430 bps, on an organic basis,
mainly as a result of lower concentrates sales in the Southern
part of Africa
22
9.0
-18.5%
FY 2017/18Badwill FY
2016/17
0.1
Δ Foreign
exchange
effect
11.0
-1.2
FY 2016/17 Δ Regional
brands
-0.9
EBIT development (in €m)
EBIT margin is at 40.2%
* at constant currencies and excluding one-off items
Reported (in €million) FY 2017/18 FY 2016/17Reported
growth
Organic
growth*
Revenue 22.3 22.7 -1.8% -2.0%
Cost of sales -12.1 -11.3 6.4% 6.4%
GROSS PROFIT 10.2 11.4 -9.9% -10.4%
Gross margin % 45.9% 50.1% ##
D&A expenses -2.0 -2.0 0.6% 0.7%
% of revenues -9.1% -8.9% ##
OPERATING PROFIT 8.2 9.3 -12.2% -12.8%
Operating margin % 36.8% 41.1%
Share of profit of JVs, net of tax 0.8 1.7
EBIT 9.0 11.0 -18.5% -11.7%
EBIT margin % 40.2% 48.4% ##
62.0%
Global brands driving revenue growthRevenue development (in €million)
67.1% 60.1%
Reported gross margin
Group revenue structure
(FY 2017/18)
Regional brands
Global brands
Δ Regional brands
-0.5
+14.5%
FY 2017/18
92.2
-1.6
Δ Foreign
exchange effect
13.8
FY 2016/17 Δ Global brands
80.5
23
Revenue (* €m)Reported
FY 2017/18
Reported
growth %
Organic
growth %
Global brands 69.9 21.0% 3.3%
Regional brands 22.3 -1.8% -2.0%
Total 92.2 14.5% 1.8%
45.9%
75.8%
24.2%
Revenue by regionRevenue development at constant currencies (in €million)
*) based on FY 2017/18 revenue
FY
2017/18
-1.6
+14.5%
0.3
92.2
Δ Foreign
Exchange
Impact
0.7
Δ North
America
1.7
Δ
Emerging
Markets
Δ Asia -
Pacific
Δ
Western
Europe
10.7
FY
2016/17
80.5
• Western Europe reported 27.8% growth, mainly as a
result of the addition of Passoã
• Global brands achieved good growth in the Netherlands
and the UK
• The strong market share of the regional brands in the
Dutch domestic market was maintained52.1%
Western
Europe
Revenue*
• Asia-Pacific reported 1.3% growth for the full year after
posting a slight decline in revenue in H1
• Passoã contributed to the growth, mainly in Japan
• Organic revenue was slightly down mainly as a result of
still challenging circumstances in Indonesia
Asia-Pacific
17.6%
Revenue*
24
Revenue (in €million)Reported
FY 2017/18
Reported
FY 2016/17
Reported
growth %
Organic
growth %
Western Europe 48.0 37.6 27.8% 1.4%
Asia - Pacific 16.2 16.0 1.3% -4.9%
North America 16.6 16.1 3.1% 7.0%
Emerging Markets 11.3 10.8 4.8% 5.6%
Total 92.2 80.5 14.5% # 1.8%
Revenue by regionRevenue development at constant currencies (in €million)
*) based on FY 2017/18 revenue
• In North America the growth path continued with 7.0%
organic growth
• US reported strong organic growth of 11.5% driven by
growth for Bols Liqueurs, Bols Genever and Damrak
Gin as well as pricing adjustments
• Retail position Bols Liqueurs was strengthened
• In Canada heavy price competition resulted in lower
revenue of Vodka, whereas sales of Passoã in Puerto
Rico were impacted by the hurricanes
North America
Revenue*
• Emerging Markets region achieved good growth of
5.1%, attributable to the strong performance of
Eastern Europe (mainly Russia)
• New markets, including the Caucasus, also showed
good growth
• The Caribbean was impacted by the hurricanes and
revenue in Central America declined
• In the Southern part of Africa significantly lower sales
of concentrates were recorded
Emerging
Markets
Revenue*
18.0%
12.3%
25
FY
2017/18
-1.6
+14.5%
0.3
92.2
Δ Foreign
Exchange
Impact
0.7
Δ North
America
1.7
Δ
Emerging
Markets
Δ Asia -
Pacific
Δ
Western
Europe
10.7
FY
2016/17
80.5
Revenue (in €million)Reported
FY 2017/18
Reported
FY 2016/17
Reported
growth %
Organic
growth %
Western Europe 48.0 37.6 27.8% 1.4%
Asia - Pacific 16.2 16.0 1.3% -4.9%
North America 16.6 16.1 3.1% 7.0%
Emerging Markets 11.3 10.8 4.8% 5.6%
Total 92.2 80.5 14.5% # 1.8%
Gross profit margin increased by 190bps to 62.0%
58.0% 59.8%74.3%
Gross profit development (in €million)
60.1% 62.0%
Reported gross margin
Gross margin development
(organic)
Δ Western
Europe
8.1
FY 2016/17
48.4
0.2
57.1
Δ Emerging
Markets
0.1
Δ Foreign
Exchange
Impact
-1.3
Δ North
America
1.7
Δ Asia - Pacific
+18.0%
FY 2017/18
26
64.2%
Total 70bps
Western Europe 160bps
Asia - Pacific 10bps
North America 340bps
Emerging Markets -430bps
25.6%
EBIT up 29.6%, driven by growth of global brandsEBIT development (in €million)
22.7%
Reported EBIT margin
30.6%
69.4%
18.2
FY
2016/17
excl.
One-offs
-1.2
FY
2016/17
0.7
Badwill &
transaction
costs
Δ Global
brands
7.7
23.6
Δ
Unallocated
Δ Foreign
exchange
effect
-0.5
Δ Regional
brands
-1.3
FY
2017/18
18.9
Highlights
EBIT for the full year 2017/18 came in
at € 23.6 million (2016/17: € 18.2
million)
Currency effects had a limited negative
impact of € 0.5 million on EBIT as the
company was still benefiting from
favourable hedging contracts
As a result of the addition of Passoã,
total overhead as a percentage of
revenue decreased from 16.5% to
15.5%
The EBIT margin rose by 290 bps from
22.7% last year to 25.6% in 2017/18
27
23.4%
Reported (in €million) FY 2017/18 FY 2016/17Reported
growth
Organic
growth*
Revenue 92.2 80.5 14.5% 1.8%
Cost of sales -35.1 -32.1 9.3% 0.0%
GROSS PROFIT 57.1 48.4 18.0% 3.1%
Gross margin % 62.0% 60.1% ## 200.1%
D&A expenses -34.5 -32.4 6.5%
OPERATING PROFIT 22.6 16.0 41.3% 43.1%
Operating margin % 24.5% 19.9% ## 460.1%
Share of profit of JVs, net of tax 1.0 2.2 -55.3%
EBIT 23.6 18.2 29.6% 36.6%
EBIT margin % 25.6% 22.7% ## 464.4%
Finance costs -3.5 -2.9 20.4%
PROFIT BEFORE TAX 20.1 15.3 31.4%
Income tax expense 0.3 -0.2 -216.3%
PROFIT FOR THE PERIOD 20.4 15.1 35.5%
Earnings per share 1.63€ 1.21€ 35.5%
Taxation
Highlights
Income taxes included one-off tax benefits in both years, € 5.6
million in 2017/18 and € 3.2 million in 2016/17
The one-off in 2017/18 is mainly due to the positive impact on
the company’s deferred tax liabilities of upcoming reductions
in the French corporate tax rate
Excluding the one-offs, the effective tax rate increased to
26.5% (last year 23%) as a result of incorporation of Passoa
and lower share of profit of JV's
28
* at constant currencies, excluding one-off items and the first eight months of Passoã in 2017/18
1.64€
Reported (in €million) FY 2017/18 FY 2016/17Reported
growth
Organic
growth*
Revenue 92.2 80.5 14.5% 1.8%
Cost of sales -35.1 -32.1 9.3% 0.0%
GROSS PROFIT 57.1 48.4 18.0% 3.1%
Gross margin % 62.0% 60.1% ## 200.1%
D&A expenses -34.5 -32.4 6.5%
OPERATING PROFIT 22.6 16.0 41.3% 43.1%
Operating margin % 24.5% 19.9% ## 460.1%
Share of profit of JVs, net of tax 1.0 2.2 -55.3%
EBIT 23.6 18.2 29.6% 36.6%
EBIT margin % 25.6% 22.7% ## 464.4%
Finance costs -3.5 -2.9 20.4%
PROFIT BEFORE TAX 20.1 15.3 31.4%
Income tax expense 0.3 -0.2 -216.3%
PROFIT FOR THE PERIOD 20.4 15.1 35.5%
Earnings per share 1.63€ 1.21€ 35.5%
* at constant currencies, excluding one-off items and Passoã
Normalised net profit was up 20.1% to € 14.7 million
Highlights
Earnings per share of € 1.64
Dividend of € 0.60 per share, up 5.3%
Number of shares outstanding are 12,477,298
29
Normalised net profit increased 20.1% to € 14.7 million
(EPS of € 1.18) compared to normalised net profit of € 12.3
million in 2016/17 (EPS of € 0.98)
1.64€
Balance sheet
Net working capital € 14.4 million, higher due to higher inventory and higher
payables end of last year, following inclusion of Passoã
Highlights
30
Other non-current liabilities include an assumed debt of € 68.2 million
representing the call/put option related to Passoã
The net debt to EBITDA ratio is 2.8 (the net debt to EBITDA ratio including the
assumed debt was 4.3 at 31 March 2018)
The decrease in DTL is mainly the result of upcoming reductions in the French
corporate tax rate
Deferred tax
ASSETS (in € million) FY 2017/18 FY 2016/17
Intangible assets 306.9 306.5
Investments in joint ventures 7.4 7.8
Other 2.6 2.5
NON-CURRENT ASSETS 316.9 316.8
Cash and cash equivalents 12.4 8.4
Net working capital 14.4 12.7
Other 0.1 0.3
TOTAL 343.8 338.2
Funded by FY 2017/18 FY 2016/17
LIABILITIES & EQUITY (in € million)
Loans and borrowings 43.9 48.7
Deferred tax liabilities 43.1 46.5
Other 68.8 67.8
NON-CURRENT LIABILITIES 155.8 163.0
Loans and borrowings 4.0 4.0
Derivative financial instruments 0.4 0.4
CURRENT LIABILITIES 4.4 4.4
EQUITY 183.6 170.8
TOTAL 343.8 338.2
Deferred tax FY 2017/18 FY 2016/17
(in €million)
Deferred tax assets 5.3 8.0
Deferred tax liabilities (48.4) (54.5)
Total (43.1) (46.5)
Continued strong cash flows as a result of our asset-
light model
Highlights
Income
taxes
CAPEX
0.4
Operating
profit FY
2017/18
-3.6
FOCF FY
2016/17
FOCF FY
2017/18
18.7
Dividends
from JV
17.5
Depreciation
22.6 -0.5
+6.9%
1.4
Working
capital
-1.7
Cash flow development (in €million)
31
Cash flows were used to pay dividends (€7.6 million), and
reduce the net debt position (down €8 million) as well as
pay interest
Important aspects of Lucas Bols’ currency effects
32
JPY exchange rateUSD exchange rate
AUD exchange rate GBP exchange rate
Highlights
49.7% of revenue is denominated in foreign currencies in
2017/18 (compared to 50.9% in 2016/17)
Lucas Bols has a policy of hedging 60 - 80% of its net
cashflows in foreign currencies at the start of the financial
year
In 2017/18, as a result of the stronger euro, foreign
currencies had a negative impact of € 1.6 million on
revenue and € 0.5 million on EBIT
Taking into account the foreign currency positions already
hedged and assuming the current level of the euro, all
foreign currencies combined are expected to have a
negative impact of around € 1.2 million on EBIT in 2018/19
vs. the 2017/18 rates
EBIT exchange rates2018/19
outlook
EUR/USD 1.21
EUR/JPY 131.48
EUR/AUD 1.56
EUR/GBP 0.89
Reported (in €million) FY 2017/18 FY 2016/17Reported
growth
Organic
growth*
Revenue 92.2 80.5 14.5% 1.8%
Cost of sales -35.1 -32.1 9.3% 0.0%
GROSS PROFIT 57.1 48.4 18.0% 3.1%
Gross margin % 62.0% 60.1% ## 200.1%
D&A expenses -34.5 -32.4 6.5%
OPERATING PROFIT 22.6 16.0 41.3% 43.1%
Operating margin % 24.5% 19.9% ## 460.1%
Share of profit of JVs, net of tax 1.0 2.2 -55.3%
EBIT 23.6 18.2 29.6% 36.6%
EBIT margin % 25.6% 22.7% ## 464.4%
Finance costs -3.5 -2.9 20.4%
PROFIT BEFORE TAX 20.1 15.3 31.4%
Income tax expense 0.3 -0.2 -216.3%
PROFIT FOR THE PERIOD 20.4 15.1 35.5%
Earnings per share 1.63€ 1.21€ 35.5%
IFRS 15 and 16 update
33
IFRS 15 update
• Lucas Bols has completed an initial assessment of the potential
impact of the adoption of the new revenue recognition standard
IFRS15 Revenue from Contracts with Customers
• IFRS 15 is expected to primarily trigger the reclassification of certain
advertising and promotional expenses as reduction of revenue, with
an estimated mid-single digit percentage impact on revenue
• Overall we currently do not expect any material effect on the
presentation of the company’s financial position, results of operations
as a whole, or earnings per share
IFRS16 replaces existing guidance on lessee accounting for leases.
The most significant impact identified is that the company will recognise
assets and liabilities for its operating leases of real estate
IFRS 15
impact
1.64€
FY 2017/18
1. Lucas Bols at a glance
2. Highlights
3. Operational highlights
4. Financials
5. Outlook
34
Outlook
Lucas Bols has a hedging policy in place. Taking into account the foreign currency position already hedged and assuming the current level
of the euro, foreign currencies are expected to have a negative impact of around € 1.2 million on EBIT in 2018/19 vs the 2017/18 financial
year.
Lucas Bols USA relaunched the Nuvo brand in the spring of 2018, which will contribute to the revenue growth of the global brands in the
US. Given the initially higher A&P investments behind Nuvo and the royalty payments, the contribution to EBIT will be limited while the
impact on Lucas Bols’s earnings per share is expected to be neutral to slightly positive in the short term.
The underlying market dynamics in the global cocktail market remain healthy. We continue to believe in the potential of our global brands
in all four regions around the world and focus on further growing our global brands, in line with our strategy. We continue to invest in A&P
for global brands that show strong growth potential in various strategic markets.
35
We will continue to monitor potential add-ons of brands which can be integrated into our platform.
Q&A