We expect Anora's earnings to improve gradually in the coming years, but its return on capital and growth outlook are sluggish.

Viva Wine, the main competitor of Anora's Wine segment, announced its Q4 result yesterday. Despite the subdued market development, Viva continued to grow and gain market shares.

Anora’s Q4 result exceeded our expectations, and the guidance expects a slight improvement this year. Although we see Anora's growth potential and value creation as sluggish, we believe the cash flow generation is sufficient for an expected return that exceeds the required return.

Anora’s Q4 adjusted EBITDA increased slightly, supported by the Wine segment, while we expected a small decrease. The dividend was kept unchanged when we expected a drop.

Anora will report its Q4 earnings on Wednesday, around 8.30 am EET. The company's 2024 adjusted EBITDA guidance is 65-70 MEUR.

Among Anora's main markets, at least Finland and Norway continued their negative development in Q4'24 and we do not expect a turnaround this year.

Despite the weak market development, Viva continued to grow and gain market share.

Anora’s Q3 result was even weaker than the cut expectations and the comparison period, as the revenue and result of its beverage segments suffered from weak volumes.