Codorniu sets new sales record while working to find a buyer

BarcelonaThe Raventós Codorníu wine group closed the 2024-2025 financial year (from July 1 of last year to June 30 of this year) with a new record in sales and profits, pending the outcome in the coming months of the sale of shares by the American private equity fund Carl six years ago. It closed the financial year with revenues of 238 million euros, 3% more than the previous fiscal year (These figures are at constant exchange rates), which represents a record high in the company's history. Likewise, earnings before interest, depreciation, and amortization (EBITDA) also reached a historic high, with an annual increase of 13% to €44 million.

"We continue on the journey to double our profitability," stated Sergio Fuster, the company's CEO, this Thursday at the press presentation of the results. "The goal was to reach €50 million five years ago, and we're practically close now," he added. In fact, the company estimates it will be able to reach €50 million in gross profit in the current fiscal year. Regarding net profit, the company won't have it calculated until December, but expects it to grow "at least 50%" compared to the €8 million of the previous year, Fuster stated.

The company, based in Sant Sadurní d'Anoia (Alt Penedès), sold 57 million bottles, of which 59% were cava, 39% were still wines, and 2% were alcohol-free or low-alcohol wines. This last segment of the business is "growing at double digits," according to the CEO, especially in Northern European and Anglo-Saxon markets, as well as in countries where Islam is the majority religion.

Fuster explained that the company has maintained a strategy of price increases below the market average: "We have tried not to implement the most aggressive increases and have looked at the medium and long term," he said, while also expecting the wine sector to moderate prices after a period of rising prices due to inflation. "Now come years of stabilization and cost reduction," he said. In this regard, he was optimistic about the situation of cava. "Now the trend is to offer better quality at a good price, not so much luxury," which favors Catalan sparkling wines: "Cava has the quality of champagne at a significantly lower price," Fuster noted, precisely at a time when champagne is losing sales worldwide.

In fact, a notable part of Codorníu's growth was precisely due to its expansion abroad. Sales to third countries already accounted for 44% of the total, while the Spanish market accounted for 54% and the remaining 2% through online channels. In Spain, Codorníu has a 30% market share, placing it first in the sector, according to data from the consulting firm Nielsen.

In addition to Codorníu, the company's original brand, the group also controls the Raimat wineries, Patch, Scala Dei, and Viña Pomal, among others. The global workforce is approximately 600 employees.

The sale, a "matter of months"

The critical point in the coming months, for Codorníu, will be the sale of the company. Carlyle acquired the majority stake in the company in 2018—valued at €390 million—while the founding family retains around 32%. The investment fund indicated from its entry into the fund that it planned to eventually sell its stake, as is customary in this type of financial company. In June, Carlyle announced that it had hired Morgan Stanley and Santander as advisors for the sale transaction, which Fuster confirmed this Thursday would take months, not years. However, with summer imminent, the transaction has not progressed beyond the appointment of both advisors and is still in "an initial phase."

The CEO declined to speculate on what type of company would be best for acquiring Codorníu, and even opened the door to Carlyle remaining a minority shareholder or ruling out selling its current stake entirely if it doesn't find a suitable buyer. The founding family will also have to decide whether, in the event of a sale, it will join the transaction or retain its shares. Fuster confirmed that minority shareholders are under no obligation to sell their shares if Carlyle does so.