Hamburg, 28 January 2004. The wine trading group Hawesko Holding AG (HAW, HAWG.DE, DE0006042708) published its preliminary results today for the past fiscal year (1 January - 31 December 2003). Group sales in 2003 rose overall by 4.2 % to € 279 million. The result from operations (EBIT) likewise increased and will be between € 14.5 million and € 15 million (previous year: € 14.1 million). The improvements achieved in the financial result compared to the previous year led to an even greater rise in the pre-tax result of the Group, after € 11 million in the previous year. This will most likely produce a substantial increase in the Group result (which will be determined only after the tax assessment is completed) and earnings per share (previous year: € 1.05). After the good progress made in working capital management, the Group estimates that the free cash flow (cash flow from current operations minus outpayments for interest and capital investments) will improve considerably compared to the previous year (€ 8.9 million). Based on this, the management board currently expects the dividend to be at least as high as that of the previous year (€ 1.00 per share).

In the fourth quarter of the past fiscal year (1 October - 31 December 2003), sales were maintained at just under € 95 million and thus roughly at the level of the same quarter in the previous year (-1 %). The Group's result from operations (EBIT) rose to nearly € 11 million in the quarter under review (previous year: € 9 million). In the mail order/e-commerce segment, sales declined by 9% to € 37 million, due among other things to the smaller scope of the pre-Christmas gift sales and the sales of Bordeaux wines, which were less lively than in the previous year. Sales of the specialist wine-shop retail segment (Jacques' Wein-Depot) increased by 3% to € 31 million in the quarter under review, but decreased slightly on a like-for-like basis (by 0.8%). At 31 December 2003, there were 252 depots, compared with 244 in the previous year; six more had been leased by the end of 2003 (previous year: three). The wholesale segment increased its sales in the quarter under review by 7% to € 27 million despite sluggish overall consumption.

CEO Alexander Margaritoff stated that the Hawesko Group expected an increase in sales as well as results for the current 2004 fiscal year. In his estimation, the Hawesko Group is in an excellent position to benefit when the inklings of improvement in the economy become stronger: "New market surveys confirm that Hawesko is increasing its market share considerably in the continuingly difficult market environment. The success of our strategy shows itself for example in the ultra-premium segment: Carl Tesdorpf has moved up within a short time to become Germany's third largest mail-order wine company. We will continue to focus on awakening the consumers' desire to have fun with wine and on further improving and expanding our first-class assortment of fine wines. All in all", according to Margaritoff, "we have good reason to be optimistic for 2004."

 

Hawesko Holding AG is a leading supplier of premium wines and champagnes in Germany. Through its three distribution channels  - mail order/e-commerce (particularly Hanseatisches Wein- und Sekt-Kontor), specialist wine retail (Jacques' Wein-Depot) and wholesale (Wein Wolf and CWD Champagner & Wein Distributionsgesellschaft)  - the Group achieved sales of € 279 million in fiscal year 2003. The Group employs 550 staff members.

Preliminary key figures for the Hawesko Group

(in € [millions], unaudited)

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(in € [millions], unaudited)

4th Quarter (1 Oct - 31 Dec):

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Published by:

Hawesko Holding AG

Postfach 20 15 52

20205 Hamburg

Internet: http://www.hawesko.com (Company profile)

http://www.hawesko.de (Online Shop)

http://www.jacques.de (Locations of and information)