AdVini says recurring EBITDA fell to €6.4 million on Cordier integration costs

French wine group AdVini said Monday that its first-half sales edged higher after the addition of Cordier’s activities, but its recurring EBITDA fell sharply as the company absorbed integration and startup costs tied to the deal.

AdVini reported revenue of €132.5 million for the six months ended June 30, up from €131.6 million a year earlier, a gain of 0.7%. The company said the increase reflected the very recent start of newly acquired Cordier operations. On a constant scope and exchange-rate basis, however, sales fell 2.5%, an improvement from the 3.7% decline recorded in the first half of 2025.

The company described market conditions as still difficult. The weakest area was French mass retail, where sales by value fell 15.0%. Activity also declined 10% in private-label focused retail chains. By contrast, AdVini said its European on-trade business, which includes bars, restaurants, hotels and specialist wine merchants, was stable as the company continued to push a strategy centered on higher-value branded wines.

That sales mix helped support margins even as volumes came under pressure. Gross margin rose to €52.6 million from €51.6 million, and the gross margin rate improved to 39.7% from 39.2%. AdVini said its brand strategy offset lower volumes through a more favorable mix in a volatile market.

Recurring EBITDA, however, dropped to €6.4 million from €9.8 million, and the recurring EBITDA margin fell to 4.8% from 7.4%. Recurring operating income also weakened, slipping to €0.5 million from €4.0 million. According to the company, the EBITDA decline was mainly caused by a €2.5 million increase in external costs and a €1.4 million rise in other recurring operating expenses, both linked to the Cordier acquisition. Those costs included expenses tied to the start of the business and the adjustment of resources ahead of the second half. Personnel expenses were stable.

Reported net income improved to €7.0 million from a loss of €0.6 million a year earlier. That gain was largely helped by €10.0 million in non-recurring operating income tied to the provisional recognition of negative goodwill, or badwill, from the acquisition. AdVini said the final purchase price allocation for the transaction will be completed in its annual accounts for Dec. 31, 2026. Its financial result also improved slightly, while net financial debt was broadly stable at €161.4 million compared with €160.2 million a year earlier.

The acquisition is a key part of the company’s current strategy. AdVini said the purchase of part of InVivo Wines’ assets became effective on April 30 after an extraordinary shareholder meeting, and that the deal also marked InVivo’s entry into AdVini’s capital. Beyond Cordier, the transaction brings broader export distribution, the Café de Paris brand and production capacity that AdVini said will allow it to enter the growing segments of quality sparkling wines and alcohol-free wines.

Performance across regions was mixed but showed stronger momentum outside France. AdVini said several of its brands, including L’Oratoire des Papes, Champy, Kleine Zalze and Ken Forrester, posted strong growth. North America rose 23%, Asia rebounded 24%, and South Africa continued to outperform, with domestic sales up 13% as well as continued export growth. The company also said export’s weight in the business increased during the half, reinforcing its focus on international markets and selective distribution channels.

For the broader beverage sector, the results point to several pressures that go beyond one company’s earnings. The 15.0% drop in French mass retail sales suggests continued weakness in a major wine sales channel. At the same time, AdVini’s lower EBITDA despite better gross margin shows how margin pressure can persist when acquisitions add short-term costs. The Cordier deal also highlights the consolidation trend in wine, where producers are seeking stronger export networks, broader brand portfolios and exposure to faster-growing categories such as sparkling and alcohol-free drinks.

Looking ahead, AdVini said it remains focused on profitable organic growth for its owned wine brands, especially in export markets and selective channels. The company also said it renewed its syndicated bank facility on July 9, extending it through 2032, with a smaller group of banks committing more than €200 million in financing. That move is intended to secure long-term financial resources as the company integrates the new assets and pursues market share gains in what it described as an uncertain and volatile international environment.