Welcome to Viva Wine Group Q1 presentation for 2026. For the first part of the conference call, the participants will be in listen-only mode. During the question and answer session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now I will hand the conference over to CEO Emil Sallnäs and CFO and Deputy CEO Linn Gäfvert. Please go ahead.
Good morning, everyone, and welcome to our Q1 2026 presentation. My name is Emil Sallnäs, and I will, together with our CFO and my Deputy CEO, Linn Gäfvert, present today. This is the agenda for today. Before we go into the quarterly update and financials, I want to start by giving you a short introduction to Viva Wine Group. 2025 was a year of growth and expansion. Today, almost 90% of our business is in our B2B segment, which includes the Nordic monopoly markets, as well as retailers and restaurants in both the Nordics and Europe. With the acquisition of Delta Wines, our B2B business is now present in seven markets. In the Nordic monopoly market, we are the market leader in wine. With the acquisition of Delta Wines, we also enter the open market in Europe, and we are the leading wine distributor in the Netherlands.
Just over 10% of our sales is in the B2C segment, which consists of our e-commerce business based in Germany and reaching a total of 11 markets, which makes us one of the leading online wine retailers in Europe. Now let's move on to the Q1 update and our performance summary. Looking at Q1, we had a solid start to the year, and I'm pleased to report that we delivered both organic growth and improved profit. Net sales increased significantly by 51%, mainly driven by acquisitions. Adjusted EBITDA increased year-on-year due to a strong performance from the underlying business and the consolidation of Delta Wines and Alpha Brands, with an adjusted EBITDA margin of 5.5%. We also had a solid operative cash flow in the quarter, in line with underlying performance of the business.
As we reported already in the last quarter, the year started with the strategic acquisition of Alpha Brands in Norway. This acquisition strengthens our presence in Norway and also opens up the grocery retail market. It is also a significant step for Viva into the no-low segment, which is the fastest-growing segment in most of the markets where Viva operates. Alpha Brands was consolidated into our financial reporting as of February. The integration of the business has been quick and smooth. We are already realizing organizational and commercial synergies according to plan. Alpha Brands made a positive contribution to earnings per share already in Q1. Now let's look in more detail at the financial performance. I will hand over the word to Linn.
Thank you, Emil. We have a strong net sales growth of 51% in the quarter, mainly driven by the acquisitions of Delta Wines but also Alpha Brands. The organic growth reached 2% and is supported by both B2B and B2C segment. In our B2B segment, we continue to be the clear number one in the Nordics. Delta Wines' performance is going according to plan and is estimated to perform better than the market. B2C continued the positive trend and reported organic growth in the quarter. Looking at the adjusted EBITDA margin, it increased. The adjusted EBITDA increased versus last year, and as Emil mentioned, it is a result from a strong performance from our underlying business as well as the consolidation of Delta Wines and Alpha Brands. The adjusted EBITDA margin reached 5.5% in the quarter.
The underlying business strengthened its margin compared to last year. Our cash flow from operating activities was solid and in line with our underlying operating performance. Cash flow from investing activities consists of the acquisition of Alpha Brands. Our cash flow from other investing and financing activities includes repayments of term loans according to plan. Looking at our net working capital, it had a very strong performance and development towards net sales, and the ratio is down from 9.6% in the previous quarter to 9.1%. A high-level simulation, including net sales for 12 months, shows that the ratio has improved versus last year, supported by Delta Wines. We ended the quarter with a net debt to EBITDA ratio of 2.6x, which is in line with our expectations.
A high-level simulation of rolling 12 months of EBITDA reduced the number from SEK 2.6 to approximately SEK 2.5, which is in line with our financial targets.
Thank you, Linn. Now over to the performance by segments. First out is the B2B segment. In the Nordic monopolies, we remain the clear market leader. We are the number one in Sweden and Finland and number five in Norway. With the acquisition of Alpha Brands, Viva Wine Group is now also a significant player in the Nordic grocery retail business. Our B2B business in Europe has performed in line with expectations and above the market according to our estimates. I'm pleased that both Delta Wines and Alpha Brands performed very well in their respective markets in the quarter and are driving the sharp increase in our growth of the segment.
Looking at total net sales in our B2B segment, it increased significantly by 63% in the quarter, and the increase versus last year is driven by the acquisition of Delta Wines and Alpha Brands. The organic growth of 2.0% is supported by all markets. Easter provided a slight positive calendar effect in the quarter. However, due to weak consumer sentiment and cold weather, Easter sales were overall soft. The adjusted EBITDA margin reached 6.3% in the quarter. The underlying business strengthened its EBITDA margin compared to last year.
Segment B2C, our e-com business, continued the positive trend and delivered organic growth of 2.2% in the quarter. Despite the continued slow overall market, we capitalize on our strong customer base and have seen a continued growth in number of active customer and number of orders. We continue to develop our strategic growth initiatives to further strengthen customer relationships and increase the lifetime value per customer. Thanks to our strong performance, we estimate that we outperformed the market both in profitability and growth.
In the B2C segment, net sales decreased as a result of negative currency effects. Organic growth, however, was positive in the quarter and amounted to 2.2%. We continue to capitalize on our customer base and optimize and balance profitability with new growth initiatives. Adjusted EBITDA increased versus last year, primarily driven by streamlined and optimized marketing initiatives. The adjusted EBITDA margin of 5.5% was up from last year.
Before my final remarks and as a new part of our presentation, I would like to give you an overview on how we as a company create shareholder value. Our companies are close to the consumer, giving us deep local market insight and enabling a data-driven approach to assortment, pricing, and marketing. This drives successful product innovation, strong sell-through, and attractive category positions. Our operating model combines entrepreneurial local execution with the benefits of a shared platform. While our companies maintain strong local autonomy and customer proximity, they also leverage common group capabilities in, for example, sourcing, data, and logistics. This combination of agility and scale enables faster decision-making, operational efficiency, and profitable organic growth. Our scale and long-standing producer relationships provide advantages in sourcing, logistics, and product development.
Combined with a high share of own brands, this creates a differentiated offering across markets, which supports both strong margins and a sustainable competitive positioning. We have a strong M&A track record and have successfully built the group in addition to strong organic sales with disciplined platform acquisitions and bolt-ons. Our decentralized structure also makes integration efficient while preserving entrepreneurial drive. Over time, this has created a repeatable and value accretive growth engine. Our asset-light model generates strong operating cash flow and high cash conversion. We allocate capital in a disciplined manner across organic growth initiatives, value accretive M&A, and shareholder returns. By consistently reinvesting capital at attractive returns, we believe our model is positioned to deliver compounding shareholder value over time.
I also would like to comment on the quarter in relation to our financial targets, which are set for the medium term. Looking at the target for growth, we delivered organic growth of 2% in the quarter on the demanding market conditions. The profitability goal of 8%-10% was not reached, which is according to plan. Q1 is the seasonally weakest quarter during the year in terms of profitability. Our capital structure has been deleveraged according to plan, and we end the quarter with a net debt EBITDA ratio of 2.6x. Finally, the proposed increased dividend of SEK 1.60 per share is within our dividend policy of 50%-70% of annual net profits. To summarize, with Delta fully integrated, we are a significantly larger company with a strong footprint in Europe.
We show record sales numbers for the group for the first quarter, and the adjusted EBITDA was also significantly higher than last year. I'm very pleased that we, despite challenging markets, delivered organic growth in both segments. At the same time, we maintained good margins and generated solid cash flow. M&A continued to be an important tool for accelerating growth, strengthening our market position, and creating long-term shareholder value. We have a strong local network and a good access to relevant acquisition opportunities. We continue to build and work actively on our pipeline on potential targets. The market outlook is defined by uncertainty, as it is difficult to fully assess the long-term effects of the war in the Middle East.
Despite the world around us, I am, when looking at our own business, optimistic about the future, and I'm convinced that we will further strengthen our position over time. With that, it is now time for the Q&A session.
The next question comes from Fredrik Ivarsson from ABG Sundal Collier. Please go ahead.
Thank you. Good morning to you. I have a few questions. I'll take them one by one. First, if we can talk a bit about Sweden, I note that you grew 1% in that market. In total and the market volume was, I think, down minus 3.5%, looking at official statistics. Is your assessment that you gained market share in Sweden or is the full Delta Wines and you grew more in line with the market, or how should we sort of view that development? Thank you.
I would say that, in the first quarter, we had a, we were slightly lower than the market. We did not grow in the Swedish market.
Okay. You raised prices by more than, I guess, the delta between market development and your reported plus one?
That's correct. That's correct.
Okay. Okay, thanks. Then on the gross margin in total, I calculate an underlying gross margin expansion if we exclude M&A by 1 percentage point roughly. If I recall correctly, I think you talked about the stable underlying gross margin in 2026, then with some potential FX tailwinds in H2. Can you give an update on this sort of guidance?
Well, it is a correct assumption that underlying gross margin has strengthened. I would say even a bit more than 1% for the quarter. Looking at the full year effects on gross margin, it's I would say since we take in Delta for the full year, if we end up at last year's total level, that would be good. However, what I've said is that there is potential in H2 if there is positive tailwinds in effects, if that continues. Now, we have also talked about the Middle East, that might have some negative effects on the gross margin. We're talking about currently, we don't know the future, about 0.3 percentage point for the full year.
I think that positive currency effects will mitigate the positive, negative effect from the macro freight costs that might increase. Overall, we stand by that it will be stable and a solid year and gross margins will, from the underlying business, have a potential to strengthen a bit further.
Yeah. Great. Thank you. That's great color, Linn. Thanks. Walking to OpEx, you talked about an OpEx to sales ratio of 11% in 2026. Is this still what you see, or should we expect that to be somewhat higher for whatever reason?
We have OpEx to net sales is what we guide on. Sales is, as we said, it's been a bit weaker in the markets. I would say that the guidance for OpEx to net sales for this year is between 11% and 12%.
Yep. Makes sense. The last question from me before I jump back into the queue. It sounds like you're fairly happy with the development in Delta. Do you have a view on the organic growth that Delta delivered in the quarter?
Yes. This was a question we had also last quarter. We don't report those numbers since we don't have them as IFRS, and we haven't consolidated them as such. However, looking at local management numbers, we have organic growth for Delta Wines in the first quarter. We are very happy with that. I would say that it is in line or even a bit stronger than the rest of the group.
Yeah. Excellent. Very clear. Thank you so much.
Thank you.
The next question comes from Johan Fred from SEB. Please go ahead.
Good morning, Emil and Linn. Thank you for taking my question. A first one, just to follow up on the prior question on the gross margin. You stated that the Middle East may have a 0.3 percentage point impact for the full year. What specifically are you referring to here in terms of cost relating to the Middle East?
Yeah. That is what we know today, and that is that we see that there are some freight costs that increase temporarily. We don't know yet since no one knows when the war ends, but that is where we see a potential risk. Currently, our assessment is that the full year could be 0.3%. There are also, I'd like to point out, that we have mitigation possibilities relating to other macro effects looking at the currency. The currency effects, positive in H2, could compensate for this negative effect. I would say all in all, currently the macro effect would be ±0 if the currency is.
the freight cost is just a straight relationship to the price of oil-
Yes.
...which increases the fuel prices.
Yeah.
...for the various freight. It has nothing to do with the actual supply chain.
No.
...as such.
No. Very clear. Very clear. Thank you for that clarification. Just returning to the adjusted EBITDA for margin for B2B, declined year-on-year, and you state that margins in the underlying Nordic business improved. Any chance that you can quantify the marginal difference between Nordic operations and Delta Wines?
We don't give out any specifics, I would say that the underlying business improved with at least 1%.
Percentage points, yeah.
Percentage points, yes. Looking at the full year, we got this question also last year, Delta Wines has a similar year looking at sales. However, looking at profitability, Q1 is a bit weaker than the rest of the group and making the tilt to Q3, Q4 stronger for Delta Wines.
Yeah, got it. The final one on Delta before moving on. In terms of synergies, we've also discussed this before, do you see any low-hanging fruit, so to speak, in terms of the revenue and cost synergies that could be realized during 2026? What's the sort of expected timeline on synergies from the acquisition and which are the clearest ones?
No, as we have mentioned before, that is also why we haven't quantified any synergies, most of the synergies that we get from the Delta Wines acquisition is related to pro-producer relationships, networks, contacts. We are leveraging that currently. That will increase our sales over time. Looking at specific costs, it's, we don't really have any specific synergies that are worth mentioning overall. We work, of course, with all the details in the business. The main synergy from Delta Wines is the fact that they have producers that we can work with in our historic markets and vice versa.
Yes, they have a very positive contribution. I mean, looking at earnings per share, I think that we guided in the press release when we bought the company that it could contribute with 10% to 11%. Looking at today, an estimated rolling 12 pro forma, we're looking at an even stronger contribution. About cost synergies, we think that Delta Wines has actually a very efficient structure, so we are very pleased with that, and they are contributing to our cash flow.
Yep. Thank you for that. The final one from me here, if I may. How should we think about the CapEx going forward? You made some CapEx investment during the quarter relating to the, I assume, headquarter move. Do you foresee any other large CapEx investments in the coming period? Potentially anything relating to Delta Wines or if you could give any guidance in terms of CapEx to sales going forward, that would be much appreciated.
Well, this was just a one-time investment, moving the headquarters after more than 10 years. The cost will be over the contract, will be period as over the results. It's a one-time cash flow effect. Looking at the CapEx, it's in line with previous, no big CapEx expenditure are expected to rise. The guidance is as previous.
Okay. Very clear. Thank you so much for taking my questions.
The next question comes from Niklas Elmhammer from Carlsquare. Please go ahead.
Yes, good morning, and thank you for all the answers. Just a bit of a follow-up on the positive organic growth. If you could please elaborate on the drivers in B2B, I mean, given the stable market share. You mentioned the Sweden, but if you also could include other markets.
Yeah, well, we have a very positive momentum, sales-wise in both Norway and Finland. They are moving along very positive with their net sales development. There we have a strong development towards the market and in their net sales.
Okay. Just, regarding Sweden, you said price. Is that price raises or is it mix?
Mostly price, yes.
Okay. Yeah, great. That was all from me.
Let's move over to the questions from the chat. We've got a question from Alexander, which I believe we have answered. The first question is regarding the, is it fair to assume that the gross margin will be around or slightly higher than 20% in 2026?
I would say that more in line with last year, since we consolidate Delta Wines, that will give a pressure on Q1 gross margin. The underlying business, as I said, will have a strong, solid development.
With regarding to OpEx, you have been guiding for OpEx levels around 11% on sales in 2026. That's still the target?
Yes, 11%-12% versus net sales is our guidance.
Great. I think that concludes today's session. Next up is our annual general meeting that will take place in Stockholm on the 22nd of May. Our next report, our Q2 report, will be published on the 20th of August. Thank you all for today, and hope to see you soon.