Osborne increases the market share of its main brands and achieve a net cash flow of+20 Million Euros in 2020
El Puerto de Santa María, 7 June 2021.- Osborne has recently held its annual general meeting, during which its accounts from last year were approved.
The company ended the 2020 financial year (February 2020 to January 2021) with sales of 159 million euros and EBITDA of 14.1 million euros, 29% and 57% less than 2019.
Almost all of 2020 was defined by COVID-19 and the serious effects it had on GDP and consumer spending, and particularly on hospitality and tourism. It should be noted that Osborne’s business model heavily depends on the hospitality and travel retail distribution channels, which have historically accounted for 60% of its sales.
Despite the drop in business, Osborne achieved a net cash flow of +20 million euros over 2020 and increased the market share of its main brands, namely Cinco Jotas, Nordés, Bodegas Montecillo, Carlos I, Anís del Mono, Veterano and Magno, among others, in practically all strategic markets. Its brands performed extremely well in retail and online, two distribution channels the company concentrated on in order to compensate for the significant fall in sales generated through the distribution channels most affected by the pandemic.
Lastly, in addition to successfully managing the impact of the pandemic, Osborne took a series of important decisions designed to consolidate and accelerate its strategic plan. These are already having a positive impact on the speed of its recovery and will increase the strength of its business model in the long term.
In the words of Ignacio Osborne, President of Osborne, ‘2020 has probably been one of the most complex, intense and challenging years in our history. Despite the sudden and inevitable drop in turnover, the results from 2020 show just how solid our business model is. As such, we improved the market share of our brands in practically all our strategic markets, in addition to strengthening our financial structure, as seen by the significant decrease in our net debt compared to 2019. I am very proud of the sacrifice shown by our shareholders, employees and partners, as well as their commitment to protect our business interests in the short term and emerge stronger in the long term. I am convinced that we are already emerging much stronger from what is an unprecedented crisis’.
To find out more, please download the summary of Osborne’s main milestones over 2020 at the following link.
MAIN MILESTONES OVER 2020
- An absolute focus on protecting the health of our employees, putting all safety protocols ahead of any other business consideration, something which has allowed us to minimise the impact of the pandemic on our team.
- Protecting our business interests in the short term, with a particular focus on tightly controlling outgoings, maintaining the supply chain during the most complex moments of the pandemic, supporting our clients, maintaining our prices and profit margins, reducing levels of stock on the market and seizing opportunities relating to countries, distribution channels and moments of consumption least affected by the crisis.
- The design of the vision Osborne 2030, which focuses on the company becoming an ‘international ambassador for Spanish food and beverages’ and will guide the company in all its business decisions.
- The implementation of a plan to accelerate our internationalisation process, with a particular focus on Cinco Jotas and Nordés, true gems in our portfolio.
- The relaunch of Sánchez Romero Carvajal, one of Osborne’s century-old brands.
- The acquisition of the whisky Doble V, with the aim of rejuvenating the brand and achieving the volume of sales it has historically enjoyed.
- The beginning of distribution in Spain of big international brands, such as Piper Heidsieck champagne and the bourbon Evan Williams.
- Important innovation in terms of all our lines of business, namely spirits, wine and cured Iberian meats, as seen through new products, brand extensions and formats adapted to emerging trends.
- The design of the industrial integration plan, which will bring about a significant increase in efficiency over coming years.
- The consolidation of a new, streamlined, horizontal, agile and cross-functional organisation, based on trust and built around our values.
- The merging of the sales networks into a single sales team, which now manages the company’s entire portfolio, something which is improving the way our products reach the market and allowing us to make the most of synergy between brands, as well as make significant savings.
- The launch of a new Digitalisation Plan to allow us to continue modernising the company, as well as strengthen the e-commerce distribution channel and upgrade our information systems to ensure they serve our business interests to the fullest.
- Disinvestment in the estate in Malpica de Tajo (Toledo), which has allowed us to strengthen the company’s financial situation and improve the profitability of our wine business.
Osborne is a family saga and business venture which began in 1772. Throughout its history, it has successfully preserved and promoted the very best Spain has to offer in the way of traditions and culture through its products, taking great care to adapt them to the times. Everything the company does is based on a set of deep-seated values, namely authenticity, skill, commitment and a visionary spirit.
It is now an international leader in Spanish food and beverages thanks to its world-renowned products of exceptional quality, which include Cinco Jotas 100% Iberian acorn-fed ham, Bodegas Montecillo Rioja wine, Carlos I brandy de Jerez and Nordés gin, to name but a few. In fact, Osborne is currently present in more than 50 countries around the world through its various brands.
As well as producing and selling its own products, the company also distributes leading third-party brands in Spain, including Piper-Heidsieck champagne, Brockmans Gin, Russian Standard Vodka, Zubrowka Vodka, Flor de Caña Rum, the bourbon Evan Williams and the liqueurs Disaronno and Tia Maria.
Osborne contributes to ensuring the sustainability of its environment and organises various social initiatives through its foundation. The company is also the owner of the legendary Toro de Osborne, recognised around the world as one of the most successful brands in the history of advertising and an icon of Spanish culture.
FOR MORE INFORMATION:
Paula Hernanz – firstname.lastname@example.org
Laura Gómez – email@example.com
Telephone: (+34) 91 787 46 00
Rocío Osborne, Director of Communications, Osborne Group.
Telephone: (+34) 917 28 38 80