Once again Olympic Brewery, which closed 2023 with a significant increase in sales and profits, needed the support of parent Carlsberg AS.
In particular, the company, the second largest “player” in beer in the domestic market, in September 2024 received a Letter of Support (Letter of Support) from the parent company Carlsberg Breweries AS, which is responsible for the management of financial services at group level.
Based on this letter, the parent company undertakes to financially support Olympic Brewery in terms of its liabilities, contingent liabilities and commitments for a period of at least 12 months from the date of approval of the financial statements.
“Management continuously monitors the company’s liquidity and has determined that the assumption of the going concern principle is sufficiently supported,” noted Olympic Brewery’s financial statements for 2023 published yesterday.
The targeting of Olympic Brewery
It should be noted that for the fiscal year that ended on 31.12.2023, the total of Olympic Brewery’s short-term liabilities exceeds the total of short-term claims by 48.3 million euros.
However, the company, as mentioned above, continues to have financial support from the parent group and for this year continues to have as a key priority Health and Safety infrastructure and equipment and technological tools for the benefit of its employees and customers.
At the same time, it is fully prepared for the implementation of its commercial plans in all its channels of activity, proceeding with new product launches in all the categories in which it operates, while emphasis will also be placed on the export sector, with a targeted strengthening of its presence in existing and entering new markets.
The new acquisitions and returns of Nisos beer
For Denmark’s Carlsberg Group, the number two player in the domestic beer market, acquisitions are a preferred strategy, which is how it expanded domestically.
In terms of acquisitions, in March this year Olympic Brewery acquired the brands Kaiser and Henniger paying a price of 4 million euros. It should be noted that Kaiser beer “ran” with a growth of 16% in 2023.
In addition, last year Carlsberg through Olympic Brewery had proceeded with its third deal on Greek soil, acquiring at the end of June 35% of Cyclades Microbrewery, which produces Nisos premium beers. The founders of the Tinian microbrewery, Alexandros Kouris and Maya Tsoklis, collected 1 million euros from the transaction.
Carlsberg’s first acquisition on Greek soil was in the Spring of 2008 when it bought Mythos from Scottish & Newcastle, followed by the acquisition of FIX by Yannis Chitos and the Greek brothers.
Cyclades Microbrewery registered losses
With regard to the contribution of Cyclades Microbrewery, the financial statements of Olympic Brewery show that in 2023 the subsidiary of the Danish group recorded losses of 143 thousand euros.
The “license agreement” between Olympiaki and Tinos Microbrewery came into force from 1/1/2024, while, since the production capacity of the brewery in Tinos has “hit a ceiling”, some codes of Nisos (including Pilsner bottle) are also produced at the facilities of the Olympic Brewery in Ritsona.
Why Olympic Brewery’s sales volume decreased
The company’s total sales volume in 2023 showed a decrease of 17%, including sales to foreign countries, while sales volume related to the domestic market increased by 3%, marginally higher than the market average.
Specifically, the sales volume rose to 1,241 thousand hectoliters from 1,500 thousand hectoliters in 2022.
According to what is stated in the financial statements, which are signed by Henrik Fredvig, who, it should be noted, a few days ago left the position of managing director, just 15 months after taking over to “run” the company, the decrease in the volume of exports is due to the decrease in intragroup sales to Bulgaria.
To Carlsberg Bulgaria sales reached only 736 thousand euros in 2023, dramatically reduced compared to 2022.
It is noted that from the total turnover of Olympic Brewery in 2022, an amount of 18 million euros – increased by 4 million compared to 2021 – came from sales to companies of the Carslberg group outside Greece. The main buyer was Carlsberg Bulgaria, to which sales had reached 16.2 million euros.
Increase in sales and profits
Despite the decrease in sales volume, the value of turnover, before excise duty, showed an increase of 6.03% in 2023 compared to the previous year and amounted to 181.12 million euros from 170.82 million euros in 2022.
Accordingly, the company’s net sales were also positively affected, after the excise tax, increasing by 8% (from 119.93 million euros in 2022 to 129.65 million euros), also due to the reduction of the special consumption tax (reduced from 30% to 28%).
Key influencing factors for the increase in the domestic market, according to the management of Olympic Brewery, was the general increase observed in the catering channel (on trade), as there was no longer any restrictive measure due to the pandemic, as well as the very good performance of tourism, which is directly related to the performance of the domestic beer market.
In terms of profitability, pre-tax profits amounted to 13.23 million euros, showing an increase of 31.5% compared to 2022, while net profits showed an even greater percentage increase (+45.2%) reaching 10.24 million. euro.
The average credit period was reduced to 64 days from 68 days in 2022 and 84 days in 2021, and the average liability payment period was maintained at 92 days, the same as in 2022, from 90 days in 2021.
Investments of 30 million euros
Following an investment plan of 9.32 million euros in 2023, which related to mechanical equipment, packaging, fixed equipment for the cold market (refrigerators, etc.) for 2024, the Greek subsidiary of the Carlsberg group has launched investments of 10 million euros.
Cumulative investments of more than 30 million euros are planned for the three-year period 2024-2026, while previous investments of 23.1 million euros were made in the period 2021-2023.
The company has two privately owned production units in Sindos and Ritsona, with a capacity of 2.1 million hectoliters per year, where 14 products are produced: FIX Hellas, FIX Black, FIX Aneu, FIX Aneu Lemon, Mythos, Mythos Radler, Mythos Ice, Kaiser, Carlsberg, NISOS Pilsner, Henninger, Tuborg Soda, Tuborg Tonic Water and the range of mixers Tuborg Lemon / Pineapple-Lime & Spearmint / Pink Grapefruit-Blood Orange/ Mango & Passionfruit.
At the same time, it imports and distributes in our country internationally recognized brands, such as the Irish Guinness and Kilkenny beers, the Belgian Grimbergen, the Bavarian Schneider Weisse weissbier and the Somersby carbonated cider.
Source OT
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