HAWESKO Holding AG /
Hawesko: Growth in the core business in the second quarter
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- Consolidated sales below previous year's level due to Bordeaux subscription
- 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
(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
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Source: HAWESKO Holding AG via GlobeNewswire