Anora Posts Higher First-Quarter Profit

Anora Group said on Wednesday that its comparable earnings before interest, taxes, depreciation and amortization rose 9.7% in the first quarter, a sign that its cost-cutting program is beginning to show results even as sales remained under pressure in its Nordic markets.

The Finnish wine and spirits company reported comparable EBITDA of 8.8 million euros for the three months ended March 31, up from 8.0 million euros a year earlier. Comparable EBITDA margin improved to 6.5% from 5.7%. Reported EBITDA fell to 6.7 million euros from 8.9 million euros, reflecting other items that weighed on the bottom line.

Net sales declined 4.0% to 135.8 million euros, as lower wine campaign volumes in Denmark, earlier lost volumes in filler services and changes in the spirits partner portfolio continued to affect results. The company said exchange-rate movements helped offset some of the decline.

Chief executive Kirsi Puntila said the company saw “strong operational progress” in the quarter despite continued market and topline headwinds. She pointed to the rollout of one common SAP platform, lower operating expenses, a stronger gross margin and a substantial reduction in inventory as early benefits of Anora’s Fit, Fix, Focus strategy.

Gross margin rose to 46.7% of net sales from a lower level a year earlier, helped by improvements in both the wine and spirits segments. Personnel expenses also fell after organizational changes announced earlier took effect.

Operating cash flow was negative 34.5 million euros, an improvement from negative 75.6 million euros a year earlier. Anora said the first quarter is typically weak for cash flow because of seasonality and excise tax timing, but that working capital management and a 29.1 million euro inventory reduction helped narrow the outflow.

The company said its interest-bearing debt-to-comparable EBITDA ratio improved to 2.1 from 3.1, reflecting a stronger balance sheet and solid liquidity.

By segment, performance was uneven. Wine net sales fell 11.4%, though comparable EBITDA improved as cost cuts took hold. Spirits net sales declined 6.4%, while gross margin increased by two percentage points to 47.5%. The company said it continued to face market share challenges in monopoly countries. The industrial business was a bright spot, with external net sales rising 14.9% on higher contract manufacturing, ethanol and starch volumes and logistics services in Norway.

In Sweden, Anora said it strengthened its No. 2 position in the monopoly channel, helped by new partners. In Finland, it launched F.FWD Fast Forward, its first functional ready-to-drink product containing caffeine. It also introduced Buzzballz cocktails in the Baltic countries.

For 2026, Anora kept its guidance for comparable EBITDA at 74 million euros to 79 million euros, compared with 71.1 million euros in 2025. The company said alcohol consumption in its key markets is expected to remain structurally challenged through this year and beyond, with industry data pointing to continued volume pressure.

Anora shares are listed on Nasdaq Helsinki.