(June 08, 2000)
Hamburg, 8 June 2000 –At today's annual general meeting of the wine trading group Hawesko Holding AG (HAWG.F 604270) the company's board of management announced that it would exercise the authorization granted by the annual general meeting on 3 June 1999 to begin immediately with the buyback of the company's own shares. The board of management can repurchase up to 440,000 of the company's own shares within the framework of this authorization. However, it will not use the full scope of this authorization in the first step. The company will buy back its shares through the stock exchange, whereby in accordance with the authorization the purchase price per share may not fall short of or exceed the average closing price of the Hawesko share for the five preceding trading days on the Frankfurt securities exchange by more than 5 %. This share buyback provides the board of management with greater flexibility in the pursuance of future acquisitions because it will then be able to use Hawesko shares as currency for acquisitions.
In his report to the shareholders, CEO Alexander Margaritoff emphasized the dynamic growth of the global market for premium wines (over DEM 7.00 per bottle). According to Margaritoff's estimate, the volume of this market will rise from its current DEM 30 billion to nearly DEM 50 billion in ten years. For the same period, Hawesko intends to increase its market share in the high-quality wine segment from 1.5% at present to 5%. An important step on the path to this goal is the distribution partnership recently concluded with the renowned Italian company Antinori for the German market. The online wine business will likewise play an important role both in the further penetration of Hawesko's domestic market as well as in the internationalization of the company. The Winegate site operated by Hawesko is currently posting growth rates of 700 %. Beginning in late summer 2000 it will also be available in English. Consolidated sales of the Hawesko Group increased by a total of 42 % thus far in the second quarter (April and May) of 2000 over the same period of the previous year (adjusted for the Wein Wolf acquisition: 11%). Sales of DEM 470 million to DEM 490 million are anticipated for the entire year 2000. "Fiscal year 2000 will be a year of big investment", according to Margaritoff.
The annual general meeting approved the distribution of a dividend of DEM 2.65 per share and ratified the decisions of the management and supervisory boards. In addition, they approved a profit and loss transfer agreement with the subsidiary IWL Internationale Wein Logistik GmbH, authorized the management board once more to repurchase the company's shares (effectively extending the present authorization) and approved a restructuring of the remuneration for the supervisory board.
Hawesko Holding AG is the Germany's leading supplier of premium wines and champagnes. The company's operations include mail-order and online companies (in particular Hanseatisches Wein- und Sekt-Kontor and Winegate.de), wine retail (Jacques’ Wein-Depot) and wholesale (Wein Wolf and CWD Champagner & Wein Distributionsgesellschaft). Through these three distribution channels Hawesko achieved sales of DEM 414 million in 1999. The group currently employs 450 people.