Market Sentiment Around Loss-Making Marie Brizard Wine & Spirits SA (EPA:MBWS)

With the business potentially at an important milestone, we thought we'd take a closer look at Marie Brizard Wine & Spirits SA's (EPA:MBWS) future prospects. Marie Brizard Wine & Spirits SA produces and sells wine and spirits in Western Europe, the Middle East, Africa, Central and Eastern Europe, the Americas, and Asia-Pacific. The €157m market-cap company announced a latest loss of €5.6m on 31 December 2020 for its most recent financial year result. As path to profitability is the topic on Marie Brizard Wine & Spirits' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Marie Brizard Wine & Spirits

According to the 2 industry analysts covering Marie Brizard Wine & Spirits, the consensus is that breakeven is near. They expect the company to post a final loss in 2021, before turning a profit of €1.6m in 2022. Therefore, the company is expected to breakeven just over a year from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 133%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Marie Brizard Wine & Spirits' upcoming projects, however, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 22% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Marie Brizard Wine & Spirits, so if you are interested in understanding the company at a deeper level, take a look at Marie Brizard Wine & Spirits' company page on Simply Wall St. We've also compiled a list of pertinent aspects you should further examine:

1. Valuation: What is Marie Brizard Wine & Spirits worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Marie Brizard Wine & Spirits is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Marie Brizard Wine & Spirits’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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