Codorníu returns to profit, achieves record sales and is now a 100% organic brand

100% of the cava bottles produced by Codorníu are now organic. The oldest brand in the sector has managed to certify its entire production a year ahead of schedule, completing a process initiated a decade ago that has allowed the Raventós Codorníu group to become the world's largest producer of organic cava, with sales of eleven million bottles and a global market share of 35%. This milestone has been reached at an especially sweet moment for the company controlled by Carlyle, as in its last fiscal year, closed last June, Raventós Codorníu achieved the highest turnover of the decade and the highest profitability in its history, as announced this Tuesday by the group's CEO, Sergio Fuster.

According to Fuster, between July 2022 and June 2023, Raventós Codorníu reached sales of 227 million euros, a figure that represents a 4% growth compared to the previous year (3% in the number of bottles sold) and is 20% above pre-pandemic figures. To find a higher volume of income, one has to go back, according to Fuster, 20 or 25 years, when Codorníu set a record of 235 million. The increase in profitability has been much more pronounced, as the group's EBITDA has improved by 16%, exceeding 33 million; the increase compared to pre-pandemic results is 30%.

Fuster did not want to disclose the net profit figure for the year, because it must first be validated by the general shareholders' meeting, scheduled for December. However, he stressed that it will be a "very positive" figure and "clearly in green territory," referring to the fact that the red numbers harvested in previous years have been left behind. The return to profits is great news for the wine company, which had not made money since the 2017-2018 fiscal year. During the pandemic years, in 2020 and 2021, the company lost 11 million and 8 million, respectively, and in 2022 it closed near the break-even point, with a negative result of 200,000 euros. "We are very satisfied with the evolution of the results; our focus is on value, prestige, quality and high-end ranges, a strategy that is giving us great results, keeping us on the path of growth and gaining market share nationally and internationally," highlighted the CEO.

Fuster on Carlyle: "The waters are calm"

Fuster has also denied market rumors claiming that the Carlyle fund might be evaluating the sale of the wine group. "There has been no purchase offer," he stated emphatically, after pointing out that Raventós Codorníu is in a full cycle of value generation, so now "no divestment operation is being considered in the short term." "We have a few years left of an upward cycle; I find it difficult to think about an exit in the short term now," he added, after noting that these types of rumors "are flattering," as they show there is interest in the company. "The waters are very calm, our focus is on the strategic plan and on value generation," he insisted. Carlyle owns 64% of the shares of the Raventós Codorníu group and the remaining 36% continues to be held by different partners and branches of the founding family.

The CEO has assured that the company permanently analyzes acquisition opportunities, and has considered the situation in the cava sector to be particularly favorable, driven by the fact that "sparkling wines are in fashion worldwide." "Cava enjoys very good health. The sector is experiencing a unique moment and has been recovering market share from prosecco and champagne in the last two years," he assured. According to Fuster, this upward cycle also coincides with the fact that, currently, "the best cava in history is being drunk" due to the effort all producers have made to raise quality. In his opinion, the scarcity affecting champagne producers creates "a unique conjuncture for cava," which is why he has shown optimism for the Christmas campaign.