Hamburg, 4 May 2006. At its annual press conference in Hamburg today, the wine trading group Hawesko Holding AG (HAW DE, HAWG.DE, DE0006042708) presented its annual report for 2005 with the complete set of accounts as well as its three-month interim report for the period January to March 2006. The quarterly figures show that the Group increased its sales in the first three months of the current fiscal year by 11.0% to Euro 69.0 million (same quarter in the previous year: Euro 62.2 million). According to data provided by the Gesellschaft für Konsumforschung (GfK), the wine market in Germany declined by 0.5% in the same period. In addition, the Hawesko Group increased its operating result (EBIT) by 50% to Euro 3.0 million in the first quarter of 2006, and more than doubled the consolidated result after deductions for taxes and minority interests to Euro 1.9 million. The earnings per share likewise rose sharply in the first quarter, from Euro 0.18 in the same quarter of the previous year to Euro 0.43 today.

 

With regard to the outlook for the rest of fiscal year 2006, Hawesko's management board provided a differentiated perspective. The company's planning for the current year is based initially on the assumption that the market will experience very little growth and will be characterized by predatory competition. In accordance with this scenario, a slight increase in sales and EBIT can be assumed for 2006, taking only the existing activities of the company into account. If new activities are included as well - in particular the costs for the pilot phase of the specialist retail concept which will be starting soon - EBIT should then be several hundred thousand euros below that of the previous year. These estimates currently remain valid: "We do not believe it is the time yet to make any substantial changes to our relatively conservative assumptions", explained chief executive officer Alexander Margaritoff. However, he also noted the latest, clearly positive trends shown in the ifo business climate index and the GfK consumption climate index. "In view of the mounting indications of an economic recovery", according to Margaritoff, "some market participants already believe these assumptions are obsolete - and I do not exclude the possibility that they may be right in the end." Should the consumer mood undergo a sustained upturn, the Hawesko Group has a solid chance of achieving sales growth of a higher magnitude, he said. Accordingly, an operating result above that of the previous year would be possible in 2006.

 

The published annual report for 2005 confirms the previously announced figures for the period under review: despite the stagnating consumption and a decline of 2.3% in the German wine market overall, Group sales increased slightly - to Euro 287.0 million - and the Group's operating result (EBIT) increased overproportionally - by 12.4% - to Euro 18.9 million (previous year, adjusted to the new International Financial Reporting Standards (IFRS): Euro 16.8 million). Consolidated earnings after deductions for taxes and minority interests rose to Euro 10.7 million (previous year, adjusted: Euro 5.7 million). Earnings per share in 2005 amounted to Euro 2.44 (previous year, adjusted to the new IFRS: Euro 1.29). As a result of the successfully and consistently implemented working capital management, tied-up capital was reduced and capital turnover was once again improved. This led to a return on capital employed (ROCE) for 2005 of 18.4%, 3.1 percentage points above the figure for the previous year. Free cash flow increased by a strong 18% to Euro 17.1 million, up from the previous year (Euro 14.4 million, adjusted); it was used partially to repay borrowings and for capital spending, and is also planned for the dividend distribution. A regular dividend per share of Euro 1.40 plus a bonus payment of Euro 0.60 have been proposed. Thus the total dividend distribution amounts to Euro 8.8 million (previous year: Euro 5.5 million or Euro 1.25 per share).

 

Hawesko Holding AG is the leading supplier of premium wines and champagnes in Germany. In fiscal year 2005 the Group achieved sales of Euro 287 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 566 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 2005 as well as the three-month report for 2006 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 information)
http://www.hawesko.de   
(Online shop)
http://www.jacques.de
(Information 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