Hamburg, 27 April 2005. At today's annual results press conference in Hamburg, the wine trading group Hawesko Holding AG (HAW DE, HAWG.DE, DE0006042708) presented its financial statements for 2004 with the full-year accounts as well as its three-month report for 2005 (for the period January to March). In the first three months of the current fiscal year, the Group achieved sales of Euro 62.2 million, which corresponds to a decline of 3.5% compared to the first quarter of the previous year (previous year: Euro 64.5 million). According to data provided by the Gesellschaft für Konsumforschung (GfK), the wine market in Germany declined by 4.9% in the same period. Despite reduced sales, the Hawesko Group increased its operating result (EBIT) by 4% to Euro 2.0 million and even doubled its consolidated result after taxes and minority interests to Euro 0.9 million. The earnings per share likewise rose sharply in the first quarter of 2005, from Euro 0.09 in the previous year to Euro 0.20 today. Borrowings were further reduced at 31 March 2005 compared to year-end 2004.

The final annual financial statements confirmed the figures already disclosed for 2004: Despite the continuing stagnation in consumption and a 3.4% decline in the German wine market overall, Group sales rose by 2.5% to Euro 285.8 million. The Group operating result (EBIT) rose proportionately greater - by 9.4% - to Euro 16.5 million (previous year: Euro 15.1 million). The consolidated result after deductions for taxes and third-party interests rose to Euro 6.3 million (previous year: Euro 6.1 million). In the past fiscal year, earnings per share amounted to Euro 1.44 (previous year: Euro 1.37). As a result of the successful ongoing working-capital management program, tied-up capital was reduced and capital turnover improved once again. This resulted in a return on capital employed (ROCE) for 2004 of 17.2%, which corresponds to an increase of 2.7 percentage points over the previous year. Free cash flow remained high at Euro 13.7 million (previous year: Euro 16.8 million); it has been used in part to reduce bank borrowings as well as reserved for the distribution of the proposed dividend of Euro 1.25 per share. This amounts to a total of Euro 5.5 million (previous year: Euro 1.10 per share, with Euro 4.8 million distributed in total).

In his comments to the media, Hawesko's chief executive officer Alexander Margaritoff discussed, among other things, the current status and future of the German consumer environment. According to him, the free-spending champagne party mood that prevailed at the turn of the millennium has in the meantime given way to extreme consumer restraint - naturally encouraged by the turbulence in the financial markets, many adverse political events worldwide and developments specific to Germany, such as high unemployment and publicly-belaboured discussions about reforming the social-market economy. The willingness of the average German consumer to buy high-priced wines has been on the decline for a couple of years. However, it appears that "cheap is cool" may not be the last word after all, given Germany's lagging wine culture in comparison with other advanced countries. Of course, price is always an important criterion, but customers are starting to differentiate in their buying habits: they save money on certain products in order to be able to afford luxuries in other areas. And this is where the Hawesko Group sees its task: to persuade customers that the luxury of a good wine is worth the price. After all, wine is an expression of individuality, an embodiment of history, an image-bearer par excellence - and thus offers just what consumers are seeking. "Arousing the customer's interest in wine," said Margaritoff, linking it to the company's forecast for the year 2005 overall, "is best accomplished in an approach as personal as possible. This is particularly true of the higher-class and premium wines, the segment in which the Hawesko Group is at home. With this in mind, we will continue our work for wine appreciation and quality, and are confident that we will be able to increase our sales as well as results even in this difficult consumer climate."

Chief Financial Officer Sven Ohlzen explained the key figures of the Hawesko Group for the past fiscal year and sketched out the economic achievements of the company since the beginning of the new millenium. According to Ohlzen, Hawesko has succeeded in systematically controlling important costs, thus improving profitability, maintaining a high free cash flow year after year, reducing the financial debts from Euro 60 million to Euro 20 million, and simultaneously distributing dividends on a continuous basis while pursuing cautious expansion. "The financial standing of the Hawesko Group enjoys a good reputation among premium banks, several of which have certified us as having 'investment grade' status, not something to be taken for granted by companies the size of Hawesko," said Ohlzen.

 

Hawesko Holding AG is the leading supplier of premium wines and champagnes. In fiscal year 2004 the Group achieved sales of Euro 286 million through their three sales channels - specialist wine shops (Jacques' Wein-Depot), wholesale (Wein Wolf and CWD Champagner und Wein Distributionsgesellschaft) and mail order (in particular Hanseatisches Wein- und Sekt-Kontor). The Group employs 580 people. The shares of Hawesko Holding AG are listed on the Hanseatic Stock Exchange in Hamburg as well as in the prime standard segment of the Frankfurt Stock Exchange.

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The full annual report for 2004 as well as the three-month report for 2005 can be found at http://www.hawesko.com, "Investor Relations" --> "Financial Data" --> "Financial Reports".

 

Published by:
Hawesko Holding AG
Postfach 20 15 52    
20205 Hamburg, Germany

 

Internet:
http://www.hawesko.com 
(Company profile)
http://www.hawesko.de    
(Online shop)
http://www.jacques.de      
(Information about Jacques' Wein-Depot)

 

Press/Media:     
Vera Maria Bau,VMB Consulting   
Phone:  +49 (0)228 4496 220    
Fax     +49 (0)228 4496 298     
E-mail:  vmb.pr@t-online.de    

 

Investor Relations: 
Thomas Hutchinson, Hawesko Holding AG
Phone: +49 (0)40 30 39 21 00
Fax    +49 (0)40 30 39 21 05
E-mail: ir@hawesko.com