Hawesko increases sales by 10% in 2007

1/31/2008, 8:02 AM (Source: GlobeNewswire)
Corporate news announcement processed and transmitted by Hugin ASA. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- -------------- - Sales Euro 334 million, EBIT over Euro 18 million - Jump in profits expected for 2008
Corporate news announcement processed and transmitted by Hugin ASA.
The issuer is solely responsible for the content of this
- Sales Euro 334 million, EBIT over Euro 18 million
- Jump in profits expected for 2008

Hamburg, 31 January 2008. The wine trading group Hawesko Holding AG
(HAW, HAWG.DE, DE0006042708) published its preliminary results for
the fiscal year just completed (1 January to 31 December 2007) today.
The Group increased its net sales, adjusted for VAT, from Euro 303
million to Euro 334 million, corresponding to a rise of 10.3%. Once
again Hawesko achieved growth far above that of the overall wine
market. According to research by the Gesellschaft für Konsumforschung
(GfK), the latter figure was 1.2% including VAT. Thus Hawesko has
once more significantly increased its market share. The Group result
from operations (EBIT) reached the target level for 2007 of a good
Euro 18 million (previous year: Euro 18.6 million). As planned, the
financial result will be Euro 1.0 million to Euro 1.5 million lower
than the previous year (Euro -1.3 million), as an extraordinary
financial gain in 2006 has not recurred and a higher financial charge
will result from the fair-value adjustment of minority interests in
unincorporated subsidiaries which is required by International
Financial Reporting Standards (IFRS). As already reported, tax
expenditure for 2007 will include a non-recurring charge of
Euro 3 million, thus the tax rate will be over 60% as expected
(previous year: 37%). From today's standpoint, consolidated earnings
after deductions for taxes and minority interests will be between
Euro 5.0 million and Euro 5.5 million or between Euro 0.57 and
Euro 0.63 per share (previous year: Euro 10.8 million and Euro 1.23
per share). On a comparable basis, i.e. adjusted for the
non-recurring additional tax charge, the expected range for the
consolidated earnings after deductions for taxes and minority
interests is between Euro 8.0 million and Euro 8.5 million (Euro 0.91
to Euro 0.97 per share). Free cash flow is expected to exceed the
previous estimate of Euro 10 million by Euro 1 million to
Euro 2 million. Given the preliminary figures, the Hawesko management
board sees the conditions set to propose a dividend payout in at
least the same amount as the previous year (Euro 0.85 per share) to
the supervisory board. The consolidated accounts of the Hawesko Group
will be audited in March 2008 and presented to the supervisory board
for review.

For the fourth quarter of the recently concluded fiscal year (1
October to 31 December 2007), the Group achieved sales of
Euro 117 million, an increase of 8.1% over the corresponding quarter
in the previous year (Euro 108 million). The Group's EBIT amounted to
approximately Euro 13 million in the final quarter of 2007, compared
to Euro 12.7 million in the same quarter of the previous year. The
specialist wine-shop retail segment (Jacques' Wein-Depot) increased
its quarterly sales by 4.6% against the previous year to
Euro 36 million, or a good 3% rise on a like-for-like basis. At the
end of fiscal year 2007, there were 269 shops (end of the previous
year: 260). The mail order segment achieved sales of Euro 33 million
in the fourth quarter, an increase of 7.0% over the same quarter in
the previous year (Euro 31 million). The wholesale segment increased
its sales in the fourth quarter by 11.8% to Euro 48 million,
primarily due to the expansion of the business at the French
subsidiary Château Classic - Le Monde des Grands Bordeaux, which
specialises in Bordeaux wines, as well the expansion of sales of
Italian wines in Germany.

Alexander Margaritoff, chief executive officer of Hawesko, stated:
"In 2007, the Hawesko Group posted its highest growth since 2001.
Now, in January 2008, we expect this positive development to continue
and anticipate an additional boost to sales in the first quarter from
the delivery of the well-received 2005 Bordeaux vintage. Despite the
current economic uncertainty, we expect further growth in our
business with premium wines in 2008. We anticipate a sales rise in
the moderate, single-digit percentage range and - not least due to
the elimination of non-recurring charges - believe that a solid,
double-digit percentage increase in the operating result (EBIT) is

Hawesko Holding AG is a leading supplier of premium wines and
champagnes. In fiscal year 2007 the Group achieved sales of
Euro 334 million through its three sales channels - specialist
wine-shop 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 609

# # #
Publisher: Hawesko Holding AG
Postfach 20 15 52
20205 Hamburg, Germany

http://www.hawesko.com (Company information)
http://www.hawesko.de (Online shop)
http://www.jacques-wein-depot.de (Information about Jacques'

Vera Maria Bau, VMB Consulting
Phone: +49 (0)228 44 96 406
Fax +49 (0)228 44 96 9406
E-mail: vmb@veramariabau-pr.de
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.com

--- End of Message ---

Postfach 201552 Hamburg

WKN: 604270; ISIN:
DE0006042708; Index: CDAX, Prime All Share, SDAX, CLASSIC All Share,
Listed: Amtlicher Markt in Frankfurter Wertpapierbörse, Prime
Standard in Frankfurter Wertpapierbörse,
Freiverkehr in Börse Berlin, Freiverkehr in Bayerische Börse München,

Freiverkehr in Börse Düsseldorf, Freiverkehr in Börse Stuttgart,

Amtlicher Markt in Hanseatische Wertpapierbörse zu Hamburg,
Freiverkehr in Niedersächsische Börse zu Hannover;
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