- Twelve-month sales, to end of March, increase 7% to EUR100.6m [US$107.8m]
- Growth rate slows from H1’s +20%
- Flagship brands Bols, Galliano and Passoã up a combined 4%
Lucas Bols has seen its healthy start to the latest financial year decelerate as the bottom line took a hammering thanks to macroeconomic hurdles.
Almost seven months after reporting a 20% sales leap in the six months to the end of September, the Dutch company said late last month that its fiscal 2023 sales finished up by 7%. While flagging a 20% rise compared to pre-pandemic fiscal 2020 [to the end of March], the cocktail specialist benefited from the implementation of price increases as well as the purchase of Tequila brand Partida at the end of calendar 2021.
Sophisticated Cocktail Markets: N America
Developed Cocktail Markets: W Europe, Japan, Australia & NZ
Emerging Cocktail Markets: E Europe, Asia [excl. Japan], Latin America, Africa & Middle East
On a by-region basis, North America - dubbed the 'Sophisticated Cocktail Markets' by the company - dipped by 1%, impacted by an "industry-wide" shortage of glass for bottles of liqueur brand Bols in the US. The addition of Partida to the portfolio, however, bodes well for future success in the country, as does the recent launch of a vodka under the Bols brand name.
Elsewhere, the Passoã liqueur struggled in the UK thanks to a "competitive post-pandemic retail market", while home market the Netherlands continues to exhibit a declining genever category. Despite these negatives, sales in the 'Developed Cocktail Markets' reporting region rose 10% in the 12-month period.
Operating profits, meanwhile, slumped by 26% thanks to the aforementioned macro's, including the glass shortages along with higher logistics and overhead costs. CEO Huub van Doorne, however, was upbeat about the road ahead. "Although the geopolitical and economic climate remain volatile and costs are expected to remain inflated," he said, "we are confident in the continued growth of our brands."
In February, the company completed the acquisition of alcohol-free spirits start-up Fluère.
