Start of the new fiscal year lives up to 2010
Start of the new fiscal year lives up to 2010
– Quarterly sales +15%, operating result (EBIT) +16%
– Q1 figures at upper end of expectations
– Focus of expansion shifts to outside Germany
Hamburg, 12 May 2011. At its annual press conference in Hamburg the wine trading group Hawesko Holding AG (HAW DE, HAWG.DE, DE0006042708) presented its annual report for 2010 with the complete full-year financial statements as well as its quarterly financial report for the period from January to March 2011. The Group increased its sales in the first three months of the current fiscal year by 14.8% to € 92.9 million (same quarter in the previous year: € 81.0 million), and domestic sales by 4.5%. During the same period the German wine market overall grew by 0.3% in terms of value according to data of the Gesellschaft für Konsumforschung (GfK). Sales in all three of the Group segments rose compared to the same period of the previous year: in specialist retail (Jacques’ Wein-Depot) by 3.2% (on a like-for-like basis by 2.4%), in wholesale by 30.4% and in mail order by 6.7%. The wholesale segment in particular benefited from the continuing high demand for Bordeaux wines. In the first quarter of 2011, the operating result (EBIT) rose by 16.3% compared to the previous year (€ 3.9 million) to € 4.6 million; the wholesale segment was the primary contributor to the increase. Consolidated net income excluding non-controlling interests amounted to € 2.9 million (€ 0.33 per share), up from € 2.3 million (€ 0.26 per share) in the previous year.
The key figures for the first quarter of 2011 are at the upper end of the range anticipated by the Hawesko management board. Thus, an even more favourable environment can be expected than that described in the 2010 annual financial report. The forecast of the Hawesko management board for fiscal year 2011 has not changed significantly – it assumes a sales increase over the previous year in the low- to mid-single-digit percentage range – but at the present time a sales increase at the upper end of this range appears more likely. However, the ongoing economic cycle and the development of the wine market segments served by the Hawesko Group are still subject to uncertainties until the end of the year. Business performance in the fourth quarter – like every year – is very important for the Hawesko Group. The management board therefore stands by its published forecast. With regard to the consolidated operating result (EBIT), the management board expects a result for the full fiscal year 2011 on the order of the previous year (i.e. € 24-26 million); this includes in particular the start-up costs to continue the market entry test in Sweden as well as the costs to adapt the structures in the wholesale segment to the dimensions achieved in recent years. The financial result is expected to show a net expenditure of less than € 0.5 million (2010: net income of € 1.8 million after an extraordinary financial gain) and thus a consolidated net profit below that of 2010 (€ 20 million excluding shares of minority interests). The management board expects another increase in EBIT and consolidated net income for 2012.
CEO Alexander Margaritoff said: ‘We have succeeded in building on our solid work of past years and expanding our market leadership in all three sales channels. We are firmly convinced that we will be able to increase our sales in Germany to a half-billion euros in the next 8 to 10 years. Based on our strengths in our home market, we have the essential prerequisites for success in other countries. We’ve demonstrated this in recent years time and again. Should we succeed in the future as well in tapping into attractive markets, discovering promising companies and driving growth abroad, our goal of achieving half of our sales abroad in the aforementioned period will not be unrealistic.’
The annual report presented for 2010 confirms the previously announced figures for the reporting period: consolidated sales rose from 11.6% to € 377.7 million. Sales in Germany rose by 6.1% compared to the same period of the previous year, while the wine market overall declined by 2.9% in 2010. With an operating result (EBIT) of € 25.7 million, the figure of the previous year (€ 22.4 million) was clearly surpassed and reached the highest level in the history of the company yet again. Consolidated net income excluding non-controlling interests amounted to € 20.0 million (previous year: € 13.1 million), while earnings per share rose to € 2.24 (previous year: € 1.48). The return on capital employed (ROCE) for 2010, at 25% (previous year: 22%), once again far exceeded the company’s defined long-term hurdle rate of at least 16%. Free cash flow, at € 23.8 million (previous year: € 20.8 million) was likewise at the highest level in the company’s history. The annual shareholders’ meeting on 20 June 2011 will vote on an increase in the dividend to € 1.50 (previous year: € 1.35) plus a bonus dividend of € 0.25; thus 2010 will be the eighth consecutive year with a rise in the dividend.
Hawesko Holding AG is a leading supplier of premium wines and champagnes. In fiscal year 2010, the company achieved sales of € 378 million and employed 696 persons in the company’s three sales channels: specialty retail (Jacques’ Wein-Depot), wholesale operations (Wein Wolf and CWD Champagner- and Wein-Distributionsgesellschaft) and mail order (especially Hanseatisches Wein- and Sekt-Kontor). The shares of Hawesko Holding AG are listed on the Hanseatic Stock Exchange in Hamburg as well as in the SDAX small-cap index of the Frankfurt Stock Exchange.
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The full annual report for 2010 as well as the three-month report to 31 March 2011 can be found at https://www.hawesko.com, ‘Investor Relations’ –> ‘Financial Data’ –> ‘Financial Reports’.
Hawesko Holding AG, 20247 Hamburg
(Jacques’ Wein-Depot information and online shop)
Vera Maria Bau, VMB Consulting
Phone: +49 (0)228 (0)228 4496 406
Fax: +49 (0)228 4496 9406
Thomas Hutchinson, Hawesko Holding AG
Phone: +49 (0)40 30 39 21 00
Fax: +49 (0)40 30 39 21 05