Hawesko enjoys a good first half in 2010
Hawesko enjoys a good first half in 2010
– Six-month sales at € 164 million (+14% over the previous year), EBIT at € 9.2 million (+44%), consolidated net income after deductions for minority interests at € 8.0 million (+103%)
– Upturn in the wholesale segment and with ultra-premium wines
– Expectations for 2010 revised upward
Hamburg, 30 July 2010. The wine trading group Hawesko Holding AG (HAW GR, HAWG.DE, DE0006042708) published its report on the first six months of fiscal year 2010 as well as its results for the second quarter today. In the quarter from 1 April to 30 June, Group sales rose by 18% to € 83.3 million before sales taxes (same period in the previous year: € 70.8 million). The primary driver of this growth was the wholesale segment with a sales increase of 46% over the comparable quarter in the previous year; the segment particularly benefited from the revival in customer interest in ultra-premium and Bordeaux wines. Sales in the mail order segment increased by 5%, while the stationary specialist wine retail segment (Jacques’ Wein-Depot) maintained sales at the previous year’s level. The consolidated operating result (EBIT) in the second quarter of 2010 was € 5.3 million (previous year: € 3.3 million). The profit from the sale of a financial shareholding put the financial result squarely in the black at € 2.6 million (same quarter in the previous year: € -0.2 million). As a result, consolidated net income after deductions for taxes and minority interests nearly tripled for the quarter to € 5.7 million and € 0.65 per share (comparable quarter in the previous year: € 2.1 million and € 0.23 per share).
Thus the Hawesko Group succeeded in increasing sales and results for the first six months of 2010 (1 January to 30 June) as well: sales rose by 14% to € 164.3 million (same period in the previous year: € 143.8 million) and the operating result (EBIT) increased by 44% to € 9.2 million (previous year: € 6.4 million). Consolidated net income after taxes and minority interests doubled to € 8.0 million and € 0.91 per share (previous year: € 4.0 million and € 0.45 per share).
In view of the now noticeably improved general conditions and the positive business development in the first six months of 2010, the Hawesko management board has modified its forecast for 2010: After previously assuming only a moderate sales increase, the board currently expects a sales increase in the upper single-digit percentage range against the previous year (€ 339 million). This assumption is based on normal business development in the fourth quarter, which – like every year – is very important for the Hawesko Group due to the holiday business. Given these premises, the management board assumes that the operating result (EBIT) can not only reach the magnitude of the previous year (i.e. € 22-23 million) but can surpass it by a good € 2 million.
The forecast remains valid that the extraordinary financial expenditure of € 1.8 million from the year 2009 will not recur in the financial result. In addition, the one-time profit of € 3.3 million realised from the sale of the shareholding in Majestic Wine plc in June 2010 has an effect on net income in the current fiscal year. Thus the financial result for 2010 will show net income in the range between € 1-2 million, compared to a net expenditure of € 2.6 million in 2009. The EBT should therefore be in the range of € 25-27 million (up from € 19.8 million in 2009). The estimated free cash flow is thus revised upwards to an expected figure of € 20 million (previous forecast: approximately € 15 million).
Chief executive Alexander Margaritoff said: ‘The Hawesko Group has emerged stronger from the economic crisis. We are well ahead of the game in the first six months and look forward to the second half of the year – including the important holiday season – with confidence. As the overall economic situation is improving significantly faster and more strongly than we had dared to hope, we are accordingly revising our guidance upwards with regard to the ongoing business development in the current fiscal year.’
Hawesko Holding AG is a leading seller of premium wines and champagnes in Germany. In fiscal year 2009 the Group achieved sales of € 339 million through its three sales channels – specialist wine retail (Jacques’ Wein-Depot), wholesale (Wein Wolf and CWD Champagner und Wein Distributionsgesellschaft) and mail order (in particular Hanseatisches Wein- und Sekt-Kontor), and employed 657 people. The shares of Hawesko Holding AG are listed on the Hanseatic Stock Exchange in Hamburg as well as in the Prime Standard segment of the Frankfurt Stock Exchange.