Hawesko: Successfully integrated acquisition boosts Group growth

Hawesko: Successfully integrated acquisition boosts Group growth

(November 06, 2012)

Hamburg, 6 November 2012. Today the wine-trading group Hawesko Holding AG (HAW GR, HAWG.DE, DE0006042708) published its report on the first nine months of fiscal year 2012 as well as the figures for the third quarter.  During the quarterly period from 1 July to 30 September the Group increased its sales compared to the same quarter in the previous year (€ 88.1 million) by 5% to € 92.3 million before VAT. The increase came primarily from the mail order segment, where the initial consolidation of the Spanish wine specialist Wein & Vinos resulted in a sales increase of 33%. In the specialist wine-shop retail segment (Jacques’ Wein-Depot), sales rose by 1%. In contrast, the wholesale segment posted a decline in sales due to the significantly lower global demand for older Bordeaux vintages. This development, originating primarily in East Asia, affected mainly the subsidiary Château Classic: Despite increases in Switzerland and stable figures in Germany, sales in this segment declined by 8% compared to the same quarter of the previous year. The consolidated operating result (EBIT) declined to € 1.9 million in the third quarter of 2012 (previous year: € 3.6 million). This was due to the drop in sales at Château Classic as well as increased investments in the expansion of operations, e.g. in conjunction with the strategic reorientation of Carl Tesdorpf – Weinhandel zu Lübeck and the general expansion of e-commerce activities.  Consolidated net income after deductions for taxes and non-controlling interests for the quarter amounted to € 1.2 million and € 0.13 per share (same quarter in the previous year: € 2.3 million and € 0.25 per share).

During the first nine months (January to September) of 2012 sales of the Hawesko Group rose by 10% compared to the previous year (€ 276.1 million) to € 304.7 million. The operating result (EBIT) of Hawesko Holding AG for the first nine months amounted to € 13.9 million, thus rising by 2% over the equivalent period of the previous year. Consolidated earnings after deductions for taxes and non-controlling interests amounted to € 8.8 million and € 0.98 per share, remaining roughly at the previous year’s level of € 8.9 million and € 0.99 per share.

The demand for premium Bordeaux wines of the pre-2009 vintages remains very quiet around the globe, and there are no signs that this market will recover any time soon. That has an impact particularly on the outlook for our Bordeaux-based subsidiary Château Classic, which achieved sales of just under € 27 million in fiscal year 2011. Based on its current estimate, the management board expects that sales at Château Classic will not exceed € 10 million in 2012. For the rest of the Group, the main sales territory is Germany, where the general economic and business conditions are still classified as good. This assessment also applies to the sales territories of Sweden and Switzerland.

The forecast of the Hawesko management board for fiscal year 2012 has changed only slightly compared to the situation described in the 2011 annual report: it expects an increase in Group sales by 10% compared to the previous year (€ 411 million). The EBIT margin is not expected to exceed the figure of the previous year (6.5%). According to the current assessment of the management board, consolidated EBIT on the order of € 28.5 million (compared to € 26.7 million in the previous year) is expected, assuming normal development of the important pre-Christmas holiday business in the fourth quarter. After deduction of the outpayment for the acquisition of Wein & Vinos, free cash flow in the magnitude of € 2-4 million for 2012 is expected.

CEO Alexander Margaritoff:  ‘Our originally higher expectations for sales and results of the nine-month period were not fulfilled, above all due to the persistently weak demand for Bordeaux wines of older vintages. However, we reaffirm our positive assumptions for the other parts of the Group. We are now focusing fully on the most important season of the year and aiming for further increases in sales and profit in 2013.’

Quelle: EQS