Hello, everyone. Welcome to our second quarterly report, Q2 2022 for Viva Wine Group. Today we're back, me, myself, Emil, and Linn, well rested after the summer. Last summer, as many of you know, we were in the middle of the IPO, and in addition, we made the biggest acquisition ever. This summer has been somewhat more relaxed. We're back with a lot of energy. Sorry. Looking at the agenda, we will introduce very briefly Viva Wine Group to any new listeners. We will go through a quarterly update more in words, and then we will look at the financials of the quarter. We'll update you on some fantastic results on the sustainability side, and then we'll have some final comments and look at our agenda ahead. Viva Wine Group. We are present in eight countries.
We are 25 entrepreneurs in 10 operating companies. We are working in three strong growing segments of the market, which is the Swedish monopoly wine segment, the Finnish and Norwegian Nordic segment in the monopolies, and then an e-com business based in Germany, but covering a big part of Europe. In the Nordics, we are the leader in wine in the stable monopoly markets, and one of the reasons that we are the leading is that we have a very strong portfolio of both own brands, partner brands and exclusive brands. It's really the mix of the three parts which is really important. We are also a pioneer in sustainability. We are a member of amfori BSCI, which is an international audit organization.
We are working very hard on climate efficient transport and packaging, and we have a high share of organic and ethically certified products. All of this we put together in a GRI report, which is assured by our auditors. Briefly, the operating companies, six of them are in Sweden. Obviously, two in the Nordics, and then in Germany, we have two companies, but three platforms towards the public, so Vicampo, Wine in Black and Weinfürst. Moving on to the quarterly update, we have had a very strong quarter with increased sales of almost 28%. This has been very much related to our acquisition of Vicampo, our e-com business in Germany, and Norwegian Beverage Group. The full acquisition of Norwegian Beverage Group, which we only part-owned at this time last year.
We are increasing market shares in all the Nordic markets, Sweden, Finland, Norway, with higher market shares, or we're outperforming the market compared to the competition. Overall, of course, sales have slowed down somewhat. There is a post-pandemic effect, which means that the monopoly sales in general are dropping a little bit. Of course, lower consumer sentiments are affecting a little bit of our organic growth. On the EBITDA margin side, we have an impact due to the general cost inflation and negative FX effects, but we'll come back to that a little bit later in the presentation. On the more company side, we have some news.
We have included Christian Fricke, our Managing Director of the Viva e-com business in the group management team. We have also had Lars Ljungälv elected as Board Member from Bergendahls now in May at the annual meeting. Lars, of course, brings very valuable experience from both the banking world and the retail world, and he also represents one of our cornerstone investors. In addition, we were also included in the MSCI Global Micro Cap Index from May 31st, which is another quality sign. Now over to you, Linn, on the financial overview.
Thank you. As Emil said, we have had a very strong growth of our net sales, reaching 27.8% in Q2, and it's driven by the acquisitions of Vicampo and Norwegian Beverage Group. Our organic growth is slightly negative in the quarter, and it's mainly related to lifted COVID restrictions and restructuring our old e-com business. In Sweden, we have a slight positive organic growth in the quarter. Looking at our gross margins, we have very strong development compared to last year, and it is, of course, supported by the acquisitions. We have some pressures on the gross margins in Q2 compared to Q1, mainly explained by the negative FX effects. We also see some effects on the cost inflation.
Here it's important to say that the price increases to end customers in the Nordic monopolies are controlled by the price windows. That means that you can increase prices to the customers twice a year in the Swedish and Finnish market, and three times a year in the Norwegian market. Looking at our adjusted EBITDA margin, it has a large increase in the quarter related to the acquisition, but in the EBITDA margin, we have some decrease, and that is driven mainly by the negative FX effects. Here it's important to point out that Viva Wine Group hedges currency, and we have substantial positive hedge effects in the quarter and year to date. However, the hedge effects are accounted for in the financial net, so below the adjusted EBITDA level.
Year- to- date, our EBITDA margin is in line with our medium target level. Going over to the segment here, we can see that the increases in net sales comes from our eCom, where we acquired Vicampo in August last year, and in Nordic, we acquired Norwegian Beverage Group in November. We also see the slight increase from Sweden. Going over to the EBITDA margin, we also see the increases in eCom and Nordics as the same as for net sales. Here it's also clear that we have the negative effect from our FX effects, and it's related to segment Sweden, where we have an exposure to euro. Again, our positive effects of our hedges are below the adjusted EBITDA. Our positive trends in net working capital towards net sales continues, landing on 9.7% in the quarter.
Looking at our net debt situation is very strong and well within our financial targets. Our cash flow is. We continue to be very strong from our operating activities. During the quarter, we have invested in Vinklubben, and we have made repayments of our loans according to plan, but we have also made dividends to our shareholders. Taking a deeper look into the segment, starting with Sweden, our biggest segment. Here we can see the slight net sales increase. We have a stronger development than the market. Although the market declined, we have a development of -0.3%, and the market is down 1.2%. Hence, our market share increased in the quarter to 25.2%. Our lower adjusted EBITDA margin in the quarter is mainly explained by the negative FX effects. We are mainly exposed to euro. We also have some effects of the cost inflation. Price increases have been made and will take place as of the September 1st. Our adjusted EBITDA margin landed below, mainly due to the FX effects.
Yes, as has started to be the tradition, we also want to talk a little bit about what we've done on the product side during the quarter. On the left-hand side, you see two examples of tender wins. Buttery Barrel, which is a Californian Chardonnay, which follows a very strong trend for this kind of product, which with a quite significant barrel influence on the wine. On the bottom left side, you see Darling, which is a Chilean wine in the premium segment. In the mid part, you see a packaging which might look a little bit crazy, and that's the idea. It's called Crazy Cat and has been extremely well-received by cat lovers around the country.
This is an own brand, as is Lush on the bottom-hand side, which also works with a striking packaging as a goal. On the right-hand side, you see some sparkling wines. Monte Santi is an example of a flavored sparkling wine. In fact, this is a pineapple flavored wine from in a striking packaging that has been very well-received as well in the market. Finally, on the bottom right-hand side, you see an organic wine from Jaume Serra Cava, a Rosé Cava, which follows up our best-selling Jaume Serra Cava that we have in white sparkling wine. Now there is a rosé wine, which has been very well-received as well.
Yes, an important fact to mention is that this is only a selection of our product launches.
Nordics, over to you.
Yes, over to the Nordics. Here we can see that we have a very strong net sales increase in the quarter related to the acquisition of Norwegian Beverage Group. Norway has a very strong development compared to the weaker markets, and that is due to the acquisition of a brand, Pietro di Campo , but also Norway have made several successful product launches. The market in Finland is slowing down, and we see a small decrease in our Finnish business, but still less than the market. Hence, our market share increased in both Finland and in Norway, reaching 15.7% in Finland and 5.2% in Norway. Our substantial growth of EBITDA margin is related to the acquisition of Norwegian Beverage Group. The total improved adjusted EBITDA margin is 15.5%, so very strong margin in this segment.
Again, a selection of wines we have launched and that have been well-received in the period. On the top of the picture, you have the Finnish wines. It's Vino, which is a wine which was developed in a very easy drinking style, was developed in Sweden and is now very well-received in Finland as well, and is one of many products that we try to launch in all the Nordic markets. In the middle, you have Nerello Mascalese from Italy, a Sicilian wine in the premium segment, so we don't only work with bag-in-boxes in Finland. On the right-hand side, you see an example of our pan-Nordic strategy when it comes to the partner brands.
[Gallo d'Oro ] is from our producer, Casa Santos Lima, in Portugal, which we are very successful with in all three Nordic markets, and this is a product that was launched first in Sweden, and now it's also being very well-received in Finland. On the bottom corner, you see the Norwegian launches, and here it might be interesting to remember that in Norway, marketing is not allowed. Here we have to work a little bit more on things like quality of the wine, the region of the wine, in order to convince the local shop managers to list it in their assortment.
Here we have a Côtes du Rhône from an area called Luberon in the south of France, which is a follow-up on our success with Bonp as, which is a red Ventoux wine from also obviously from Rhône, which was very well-received last year. On the right-hand corner, you see us following some trends. Tissot & Potel is a Chardonnay from the Jura. Now that Burgundy Chardonnays are becoming more and more expensive, other areas, and the Jura is very close, just one hour away from Burgundy. They can deliver the same style and quality of wine, but at a more affordable price. We are following the Rosé trend for Piemonte wines in Norway.
Taking a look at our segment in Viva eCom. As you all know, there is a general downturn in the e-commerce market. However, our net sales increased a lot due to the acquisition of Vicampo. Our external organic growth is negative, mainly due to the fact that it's only calculated on our historic eCom business that is currently under restructuring to gain future synergies. Our gross margins are very strong and according to plan. Here we have been able to compensate the current cost and inflation. Our adjusted EBITDA margin landed just below our medium target.
Yes, here are some highlights from the businesses that we have also now launched the Weinfürst concept, which is our direct-to-consumer concept, our most profitable eCom business, also in Austria. The initial response has been very good. Worth mentioning is also that the average order value has increased, which is both proof that we are strengthening and our gross margins has worked out well, but also that we are keeping the customers keeps buying the wine despite the slightly higher price. Then when it comes to integration, it's going according to plan. Wine in Black, our historic eCom, main eCom, is now about to be merged with the Vicampo tech stack in September, which is, in the eCom world, of course, a very big step in order to have synergies.
We have also closed our Berlin office according to plan, so now the whole business is based in Mainz, close to Frankfurt. Of the KPIs worth mentioning is, of course, the strong number of repeat customers that we have, 81%, which is really good, a very good base for our business. When we move over to sustainability, we are outperforming our peers. In Sweden, the business has, together with Systembolaget, something called the Swedish Drinks Business Climate Initiative, a very long name in English and in Swedish. But w e are a founding member, and it connects all the Swedish business in joint goals for CO2 emissions under scope one, two, three, which means transports and packaging, but not farming at this stage.
Here we are very proud of our numbers because the industry average in 2021 versus 2022 actually increased in terms of CO2 emissions with 17.5%, while ours decreased with -4%. The main reason, of course, for the industry average is that it was during COVID times in 2021. It was a very strained situation for transport, so many of our competitors had to use other means to transport their wines than usual, which increased the number. We're very happy that we could avoid that, and we could stay sustainable despite difficult circumstances.
In terms of specific numbers, our CO2 emissions are 32% lower than the average for the wine and spirits business in Sweden, which in CO2 equivalents per liter means 0.32 versus 0.47. For the final comments, our financial targets, they remain the same. Here we only want to stress the fact that they are on the medium term. In Q2, of course, we are in line with this more or less. Finally, more interesting, for me at least, our agenda ahead, and it's really about maintaining our strategy and no changes. Despite the current circumstances, we are not changing anything, or we don't have to change anything.
We are continuing focusing on pricing and margins, which we have always done. We have always been very strong on both margins and pricing. As seen earlier in the presentation, the product development remains strong, and we develop new products every quarter and launch products in the same fashion as before. We are putting a lot of focus on synergies across all business segments. In the eCom, it's very clear that we're putting businesses together. In the Nordics, it's about cooperating very close between the companies and launching products in many markets, in all three Nordic markets, I should say. When it comes to the M&A landscape, it has been, in general, quite active. We have seen transactions that are public. We have seen quite a few more transactions in total. Here we are very, very selective, and we will only buy companies when they really fit our strategy and it makes sense for our long-term goals. That concludes our quarterly presentation, and you're welcome to ask questions.
Thank you. If you wish to ask a question, please press zero- one on your telephone keypad. If you wish to withdraw your question, you may do so by pressing zero- two to cancel. There will be a brief pause while questions are being registered. No questions from the telephone line at this time. I hand over back to you, speakers.
Yes. We have received some questions through mail. We have four questions from Fredrik Ivarsson, Analyst at ABG. First of all, a general question. Last quarter, you said that you didn't really see any signs of down trading in the SEK 80-SEK 120 segment. Have you seen any consumer behavior changing during the last months, or is the image still the same?
Yeah, I would say it's still pretty much the same. I think the important part where we see a big difference is in the bag-in-box segment, where it's clear that cheaper bag-in-boxes, meaning those below SEK 200 for 3 l are increasing and are quite strong. Bag-in-boxes above SEK 200 are a little bit dropping in sales. Of course, bag-in-box is the biggest segment, but it's also really where the price fighters are, if you look at the price per liter. In the bottle segments, the tendency is more or less the same.
Thank you. There was two questions on segment Sweden. The first one, the gross margin was down four percentage points, and you mentioned FX and input prices as the key reasons. Is there also a negative mix effect in there?
No, I wouldn't say that this summer has created any kind of negative mixed effect at all, actually.
For the second question on segment Sweden. Given that the euro to SEK rate is fairly similar and you won't be able to make any meaningful price adjustments until the end of Q3, should we expect a similar gross margin contraction in Sweden in quarter three?
I think that's a pretty good assumption to make, although September will of course be part of that, so maybe slightly better if you look at it from a more technical point of view.
For the final question on e-commerce segment. The organic growth in your legacy business was -35%. Can you say anything about organic development in Vicampo, the one that was acquired on a standalone basis?
Our feeling, of course, compared to the monopolies, we don't have the actual number, but we feel that we are in line with the market. As mentioned before, we believe, and I think this goes for eCom in all segments, that somewhere between -20% and -30% would be a good assumption for the whole market and where we say that we are in line with the market.
Thank you. That was all questions from Fredrik Ivarsson.
Thank you. If you wish to ask a question, please press zero- one on your telephone keypad. If you wish to withdraw your question, you may do so by pressing zero-t wo to cancel. We don't have any more questions from the telephone line. I hand over back to you speakers for any closing remarks.
All right. I think that concludes our presentation for today. As always, we are available, Mikael, our IR contact, Linn and myself, if you have any additional questions via email or otherwise. Thank you and have a good day.
Thank you.