(October 27, 1999) Operating profit DM 2.3 million (1998: DM 0 million)
- Wein Wolf fully consolidated
Hamburg, 27 October 1999.
Hawesko Holding AG (HAWG.F, 604270), the German wine retailer, and subsidiaries announced sales and results today for the third quarter of 1999. Group sales were DM 82.1 million in the third quarter of 1999, up by 48 % against the same period in 1998. The newly-acquired Wein Wolf group made up the biggest part - 39 percentage points - of this increase; not including the effects of Wein Wolf, sales increased by 9 %. Operating profit (EBIT) for the third quarter showed a boost against 1998 both with the first-time consolidation of Wein Wolf, at DM 2.3 million, as well as without the effects of the acquisition, at DM 0.9 million; in the third quarter of 1998 Hawesko had made no operating profit. Net profit for the quarter was DM 0.6 million (DM 0.2 million without Wein Wolf), compared to a loss of DM 0.2 million in 1998.
"The third quarter is traditionally our weakest of the year; nonetheless it was especially good in the wine-shops and wholesale lines of our business," said Sven Ohlzen, Management Board Member and Finance Director. "We expect that the mail-order line will pick up more strongly as we move closer to the Christmas season."
For the first nine months of 1999 the Hawesko Group recorded a sales increase against the same period in 1998 of 30 %, up to DM 245.2 million, following the acquisition of Wein Wolf, which is retroactive to 1 April 1999. Without Wein Wolf, sales were up 7 % in the first nine months of 1999. Operating profit (EBIT) to 30 September 1999 including Wein Wolf was DM 15.3 million, up 8 % against 1998.
Management Board Chairman Alexander Margaritoff: "We are extremely pleased with the developments after the acquisition of Wein Wolf and the introduction of the customer loyalty card at Jacques' Wein-Depot during the third quarter. The fourth quarter traditionally makes up well over one-third of our total annual sales and two-thirds of our annual profit; the main thrust of our year-end business is still in front of us, with the introduction of a big new mail-order catalog at the end of November, the Christmas present business and, of course, the internet."
Hawesko Holding AG is Germany's leading seller of premium wines and champagne. With three distribution channels - mail-order (Hanseatisches Wein- und Sektkontor), wine stores (Jacques' Wein-Depot) and wholesale (Wein Wolf; Champagner Wein Distribution) - the Group achieved net profit of DM 20.3 million on sales of DM 303.0 million in 1998 with 353 employees.
Note: the Report on the first nine months of 1999 with full accounts can be downloaded from our website.