Marie Brizard Wine & Spirits sees sharp profit decline amid tough French market and US distributor shifts

Marie Brizard Wine & Spirits, a French beverage group listed on Euronext, reported a significant drop in earnings for the first half of 2025. The company’s Board of Directors approved the consolidated results on September 24, following completed audit procedures. The figures show that the group’s EBITDA for the first six months of the year was €5.9 million, down from €8.5 million in the same period last year. Net profit attributable to the group fell to €2.6 million, a decrease of €3.9 million compared to the first half of 2024.

The company attributed much of this decline to challenging commercial negotiations in France, particularly with customers for its William Peel Scotch brand. According to Fahd Khadraoui, Chief Executive Officer of Marie Brizard Wine & Spirits, the lack of price agreements with some French customers and stock adjustments by distributors in the United States were key factors behind the 8.5% drop in group revenues during the period.

Despite these setbacks in its domestic market, Marie Brizard Wine & Spirits reported some resilience in international operations. The company highlighted an 80 basis point improvement in its consolidated gross margin ratio, which it credited to growth and cost control in international business segments. The group pointed to commercial successes with its International Strategic Brands such as William Peel and Marie Brizard, as well as new distribution contracts for Agency Brands in Bulgaria and continued development of its Industrial Services offering.

Khadraoui noted that current price adjustments are a direct response to inflation affecting the cost of matured spirits, describing them as unavoidable under present market conditions. He expressed appreciation for customers who have accepted these changes and said that discussions continue with those who have not yet agreed to new terms.

To address ongoing challenges and protect profitability, Marie Brizard Wine & Spirits has accelerated its cost reduction program into the second half of 2025. The company also continued investments in industrial capacity and IT projects while maintaining what it described as a comfortable net cash position.

The group’s leadership remains focused on reaching agreements with customers and managing costs amid what it called “very negative impacts” on business performance. Khadraoui stated his confidence in the company’s ability to navigate current headwinds and work toward a sustainable recovery through balanced commercial terms.

Marie Brizard Wine & Spirits is known for producing and distributing a range of spirits and wines across Europe and other international markets. The company’s results reflect broader pressures facing beverage producers this year, including inflationary costs and shifting distributor strategies in key markets like France and the United States.