Hamburg, 26 October 2005. The wine trading group Hawesko Holding AG (HAW GR, HAWG.DE, DE0006042708) published its report on the first nine months of 2005 as well as its results for the third quarter today.  This year, in the period from 1 July to 30 September - which is traditionally the weakest quarter of the fiscal year - the Group increased sales by 1.3%, from     Euro 60.1 million to Euro 60.9 million (before sales tax). During the same period, the German wine market overall posted a decline of 6% in both quantity sold and value, according to the latest study by GfK. The operating profit of the Hawesko Group (EBIT) for the quarter increased by 58% to Euro 2.1 million (previous year: Euro 1.3 million); this increase is due to sustained improvements in the cost structure. As a result of the profit and loss transfer agreement becoming effective between the parent company and Jacques' Wein-Depot, tax expenditures were extraordinarily low in this period for the first time. Accordingly, consolidated earnings (after deductions for taxes and minority interests) rose to Euro 1.4 million, well above the previous year's figure of Euro 0.1 million.

In the nine-month period from 1 January to 30 September 2005 Group sales, at Euro 183.8 million, were slightly above the level of the previous year (Euro 183.6 million). During the same period, the overall wine market in Germany decline in value by approximately 7%. The operating profit of the Hawesko Group for the first nine months amounted to Euro 5.3 million, corresponding to an increase of 25% over the same period in the previous year (Euro 4.3 million). Due to the newly lower tax rate, the Group's consolidated earnings (after deductions for taxes and minority interests) nearly tripled from Euro 0.9 million in the previous year to Euro 2.4 million in 2005.

The Hawesko management board has reaffirmed its stated goal for this fiscal year of increasing both sales (previous year: Euro 286 million) and EBIT (previous year: Euro 17 million, adjusted for the new IFRS accounting system) despite the ongoing sluggishness in the market. Chief executive officer Alexander Margaritoff stated: "We have been doing our homework consistently, and are now reaping some more of the rewards. This is reflected in the increases in our market share as well as the proportionally greater increase in profits against sales. With regard to the all-important fourth quarter, we anticipate development in line with our forecast and the achievement of our stated goals." As a rule, the Hawesko Group earns more than two-thirds of its total annual profit during the fourth quarter.

 

 

Hawesko Holding AG is a 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 retail (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 SDAX and GEX segments of the Frankfurt Stock Exchange.

 

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The complete nine-month report for 2005 is available at http://www.hawesko.com - Investor Relations - Financial Info - Financial Reports

 

 

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

Internet:
http://www.hawesko.com
(Company information)
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 240    
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