Hawesko: Growth in the core business in the second quarter

8/6/2014, 8:00 AM (Source: GlobeNewswire)

HAWESKO Holding AG / Hawesko: Growth in the core business in the second quarter . Processed and transmitted by NASDAQ OMX Corporate Solutions. The issuer is solely responsible for the content of this announcement.

- Consolidated sales below previous year's level due to Bordeaux subscription wines
- Outlook for sales and consolidated net income confirmed

Hamburg, 6 August 2014. Today the wine-trading group Hawesko Holding AG (HAW GR, HAWG.DE, DE0006042708) published its six-month report for the first half of fiscal year 2014 as well as the figures for the second quarter.  In the quarter from 1 April to 30 June, Group sales declined by 2.0% from € 113.3 million in the same quarter of the previous year to € 111.0 million; both figures are before VAT. In the quarter under review, the pre-sold subscription wines of the 2011 Bordeaux vintage were delivered; demand for these was lower than for the wines of the 2010 vintage, which were delivered in the corresponding quarter of the previous year and had had a decisive influence on the sales in the comparable period. Accordingly, sales in the wholesale and mail order segments declined by 8.3% and 1.0% respectively. In contrast, the specialist retail segment (Jacques? Wein-Depot), which is not exposed to the fluctuations in the Bordeaux market, posted sales growth of 6.5% (adjusted for new openings: 5.6%). The decline in the deliveries of subscription wines as well as non-recurring consulting expenses in the second quarter pressured the consolidated operating result (EBIT) so that it declined to € 3.3 million (previous year: € 6.7 million). The financial result amounted to € 0.2 million (previous year: € -0.3 million).  Consolidated net income after deductions for taxes and non-controlling interests for the quarter amounted to € 2.5 million and € 0.27 per share (same quarter in the previous year:  € 4.2 million and € 0.46 per share).

Adjusted for the sales from the delivery of the subscription wines both in the reporting period and in the previous year's quarter, sales in the core business rose by 4.3%. From this standpoint, all three business segments grew: In addition to Jacques? Wein-Depot with its sale increase of 6.5%, the wholesale segment grew by 4.1% and the mail order segment by 2.5% adjusted for the Bordeaux subscription wines respectively.

In the first six months of fiscal year 2014 (1 January to 30 June), sales rose by 1.2% to € 219.0 million (same period in the previous year: € 216.3 million). The operating result (EBIT) declined by 30.1% to € 7.1 million (previous year: € 10.1 million). Consolidated net income after deductions for taxes and non-controlling amounted to € 5.0 million and € 0.55 per share; the figures for the same quarter in the previous year were € 6.4 million and € 0.71 per share.

The forecast of the Hawesko management board for fiscal year 2014 with regard to sales and consolidated net income has not changed with the presentation of the figures for the first half of the year: A rise in sales in the order of magnitude of 1-2% compared to the previous year (€ 465 million) and consolidated net income in the area of € 17 million are expected. The forecast has changed slightly for the operating result (EBIT). In the context of the continuous development of the Group, higher expenses were incurred for consulting services in the second quarter. By nature, these are non-recurring costs and will decline over the further course of the year. Thus, the management board has revised the previous EBIT forecast of €27-28 million accordingly: including the higher consulting expenditures totalling € 1.5 million, an EBIT of € 26 million is anticipated for fiscal year 2014 (previous year: € 22.6 million). For the second half of 2014, the management board continues to expect improvements in the results of all three business segments compared to the first six months of the previous year, particularly in the wholesale segment, where extraordinary charges were incurred primarily in the fourth quarter of 2013. A net expenditure of approximately € 0.5 million (previous forecast: net expenditure of approximately € 1.2 million) is expected for the financial result.   

As CEO Alexander Margaritoff stated, "We had expected that consolidated sales in the second quarter would be slightly lower overall than in the previous year. This is due exclusively to the 2011 Bordeaux vintage delivered in the current year. Particularly for this type of small fluctuation our broad business mix has the advantage that one part compensates for the other. Over the course of the year with its double anniversaries, we look forward to the continuing campaigns at Hanseatisches Wein- und Sekt-Kontor and Jacques? Wein-Depot. Naturally, our efforts to expand our foreign operations will likewise continue."

Hawesko Holding AG is a leading supplier of premium wines and champagnes. In fiscal year 2013, the Group achieved sales of € 465 million and employed 925 persons in the company's three sales channels: specialty retail (Jacques' Wein-Depot), wholesale operations (Wein Wolf and CWD Champagner- und Wein-Distributionsgesellschaft) and mail order (especially Hanseatisches Wein- and Sekt-Kontor and Wein & Vinos). 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 six-month financial report to 30 June 2014 is available for downloading at http://www.hawesko-holding.com, --> "Press" or "Investors" --> "Downloads".

Hawesko Holding AG, 20247 Hamburg
(Company information)
(Online shop)
(Jacques' Wein-Depot locations and online shop)
(Spanish wines sold through Wein & Vinos)

Press/Media Contact and Investor Relations:
Thomas Hutchinson, Hawesko Holding AG
Phone: +49 (0)40 30 39 21 00
Fax +49 (0)40 30 39 21 05
E-mail: ir@hawesko-holding.com

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: HAWESKO Holding AG via Globenewswire


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Plan 5 Hamburg Germany

WKN: 604270;ISIN: DE0006042708;Index:GEX,CLASSIC All Share,SDAX,Prime All Share,CDAX;
Listed: Freiverkehr in Börse Stuttgart,
Freiverkehr in Börse Berlin,
Freiverkehr in Börse Düsseldorf,
Freiverkehr in Bayerische Börse München,
Freiverkehr in Niedersächsische Börse zu Hannover,
Prime Standard in Frankfurter Wertpapierbörse,
Regulierter Markt in Frankfurter Wertpapierbörse,
Regulierter Markt in Hanseatische Wertpapierbörse zu Hamburg;

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