Hamburg, 27 October 2006. The wine merchant and trading group Hawesko Holding AG (HAW GR, HAWG.DE, DE0006042708) published its report on the first nine months of fiscal year 2006 as well as its results for the third quarter today. In the quarter from 1 July to 30 September 2006, Group sales increased over the same quarter of the previous year by 1% to Euro 61.7 million before sales taxes (previous year: Euro 60.9 million). However, the result from operations (EBIT) for the quarter fell to Euro 1.0 million (previous year: Euro 2.1 million). This is due primarily to the reduction in advertising activities in the mail order segment, which was necessary in the course of the complete switchover to a new IT system. Consolidated earnings (after deductions for taxes and minority interests) amounted to Euro 0.3 million (previous year: Euro 1.4 million).

 

In the first nine months of the current fiscal year (1 January to 30 September 2006), the Group posted sales of Euro 194.6 million, an increase of 6% over the first nine months of the previous year (Euro 183.8 million). During the same period the German wine market overall grew by 2%, according to a GfK survey. The operating result of the Hawesko Group in this nine-month period rose to Euro 5.9 million (previous year: Euro5.3 million), while the Group result after deductions for taxes and minority interests increased to Euro 3.2 million (previous year: Euro 2.4 million).

 

For the Hawesko management board there is no great material change in full-year 2006 targets due to the earnings weakness in the third quarter: the board expects a sales increase over the previous year (Euro 287 million). With regard to EBIT from existing activities, the management board now assumes that the previous year's figure (Euro 18.9 million) will not be surpassed. Expenditures for the start-up of new activities - in particular for the first pilot stores with the new specialist retail concept multiwein - will place a charge on the EBIT for 2006, as already announced. From today's standpoint the management board estimates group EBIT on the magnitude of Euro 18 million, whereby a normal course of business is assumed for the important pre-Christmas trading period in the fourth quarter.

 

Chief executive officer Alexander Margaritoff stated: "We are already in the decisive fourth quarter when, like every year, one-third of our annual sales and more than three-quarters of our annual operating profit are achieved. The Hawesko Group has begun this crucial quarter with a comfortable lead, and I am upbeat about the further course of business to the end of the year. So, I am looking forward to Christmas and expect a really robust business development."

 

Hawesko Holding AG is a leading supplier of premium wines and champagnes. Its sales channels include specialist wine retail (Jacques' Wein-Depot), wholesale (Wein Wolf und CWD Champagner & Wein Distributionsgesellschaft) and mail order (particularly Hanseatisches Wein- und Sekt-Kontor).  The Group employed an average of 566 staff members during the past fiscal year. 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 complete nine-month report for 2006 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

 

Web site:
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