Hamburg, 29 April 2003. The wine trading group Hawesko Holding AG (HAW DE, HAWG.DE, DE0006042708) presented its 2002 annual report with the complete annual accounts and the three-month report for 2003 (for the period January to March) at today's Annual Press Conference in Hamburg. In the first three months of the current financial year, the group was able to boost sales by some 14 % to almost € 64 million (previous year: € 56 million) and the operating result (EBIT) by around 12 % to € 1.7 million. Consolidated earnings after taxes and minority interest rose by € 0.1 million to € 0.6 million. All three segments - mail order/e-commerce, over-the-counter specialist retailing (Jacques' Wein-Depot) and wholesaling - were able to increase their volume of business. The higher consolidated earnings are attributable to the successful performance of the wholesaling segment.

 

The annual report just presented confirmed the business figures for 2002 which had already been disclosed: consolidated sales were boosted by 1 % to € 267 million in spite of generally slack consumption; the consolidated operating result (EBIT) was € 14 million (previous year: € 17 million), and consolidated earnings after taxes and minority interest reached almost € 5 million (previous year: € 7 million). Earnings per share amounted to € 1.05 (previous year: € 1.61). The free cash flow (cash flow from current operations less investment and interest paid) totalled just under € 9 million in 2002 (previous year: € 15 million, including more than € 4 million from one-off effects).

 

In his remarks on the business situation in 2002, CEO Alexander Margaritoff referred to what was probably the most difficult year for the retail trade in Germany since the currency reform back in 1948. He pointed out that the Hawesko Group had nevertheless turned in a good performance, with sales rising by over one percent and a profit margin (based on EBIT) of more than 5 % in the 2002 financial year. In view of the dynamic disposition of the global wine market and the fact that consumer culture in Germany had been showing a steady but increasingly marked change over the past fifteen years, Hawesko was set to remain on course for growth.

 

Finance Director Sven Ohlzen emphasised how important it was in this context to promote a reasonable level of growth in the Hawesko Group even in less successful years. The Group had taken on some development costs which placed a burden on earnings, for example the policy of expansion for Jacques' Wein-Depot - which has seen the opening of an unprecedented number of 27 outlets at new locations  and to make structural improvements in the other segments. Postponing these costs would not have served the medium-term expansion goals, especially in the light of growth opportunities in premium-quality wines, the focus of the Hawesko Group's product range.

 

With regard to the financial strength of the Hawesko Group, Ohlzen remarked that the level of tied-up capital had been further optimised thanks to progress in working capital management, and that the indicator of capital turnover had been improved for the third year in succession, to 1.6 (previous year: 1.5). These advances had also had an impact on the free cash flow, which remained high at nearly € 9 million (not including proceeds from the sale of treasury shares). Borrowings had been reduced by € 6 million to € 41 million in 2002, and then by a further million euros in the first quarter of 2003. According to Ohlzen, the equity ratio at the end of the year (prior to the distribution of profit) was boosted by 3 percentage points to 38 %. All this fitted in with the longer-term strategy, the aim of which was to boost capital efficiency and return on investment, keep the group's risk profile suitably low and, ultimately, gradually enhance Hawesko's appeal for investors.

 

In his outlook, CEO Margaritoff indicated his positive view of the future development of the wine market in Germany; the activities of other market players, above all cut-price retailers, were boosting the market for wine in general and, thus, ultimately Hawesko's market as well. He stressed that especially in the upmarket segment, where the group was able to demonstrate its particular expertise and reach its target clientele, Hawesko already had the right purchasing and customer care infrastructure. On the strength of the business figures for the first three months, he expressed his confidence that the forecasts for 2003 would be met: in the current financial year, sales are to be boosted by approximately 5 % to € 280 million and EBIT by a proportionally higher level. The return on capital is to be boosted by optimising working capital.

 

Hawesko Holding AG is a leading seller of premium wines and champagnes. Its three distribution channels are mail order/e-commerce (particularly Hanseatisches Wein- und Sekt-Kontor), specialist wine-shop retail (Jacques' Wein-Depot) and wholesale (Wein Wolf and CWD Champagner & Wein Distributionsgesellschaft). The group employed an average of 558 people during the past financial year. The shares in Hawesko Holding AG are listed on the Hanseatic Stock Exchange, Hamburg, and in the Prime Standard segment of the Frankfurt Stock Exchange.

 

 

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The full three-month report 2003 is available at

http://www.hawesko.com / Investor Relations / Financial infos /

Financial reports.

 

Published by: Hawesko Holding AG

P.O. Box 20 15 52

20205 Hamburg

GERMANY

 

Internet:

http://www.hawesko.com

(Corporate information)

http://www.hawesko.de

(Online shop)

http://www.jacques-wein-depot.de

(Jacques' Wein-Depot locations and information)

 

Press/media:

Vera Maria Bau,VMB Consulting

Tel. (+49) 2244 912736

Tel. (+49) 2244 912738

e-mail: vmb@nsag.de

 

Investor Relations:

Thomas Hutchinson, Hawesko Holding AG

Tel.  (+49) 40 3039 2100

Tel.  (+49) 40 3039 2105

e-mail: ir@hawesko.com