Hamburg, 9 May 2007. At its annual press conference in Hamburg, the wine trading group Hawesko Holding AG (HAW DE, HAWG.DE, DE0006042708) presented its annual report for 2006 with the complete financial statements as well as its three-month report for 2007 for the period January to March. The Group increased its sales in the first three months of the current fiscal year by 6.2% to Euro 73.3 million (same quarter in the previous year: Euro 69.0 million). According to data provided by the Gesellschaft für Konsumforschung (GfK), the wine market in Germany declined by 2.3% in the same period due to consumers making purchases prior to 1 January 2007 to avoid the increase in VAT. In the first quarter of 2007, the operating result (EBIT) was Euro 2.0 million (previous year: Euro 3.0 million) and the consolidated earnings after deductions for taxes and minority interests amounted to Euro 0.9 million (previous year: Euro 1.9 million). The decrease in profit compared to the previous year was due to the cost of measures taken to increase acquisition of new customers as well as the non-recurrence of capitalised costs from the previous year. Earnings per share amounted to Euro 0.11 compared with Euro 0.22 in the same quarter of the year before.

 

With regard to the prospects for the remainder of fiscal year 2007, the Hawesko management board expects slight market growth (approx. 1 %) and a single-digit percentage increase in sales. The operating result (EBIT) is expected be at the level of the previous year: this forecast includes the costs from continuing the test of multiwein specialty stores as well as from the intensified acquisition of new customers. The management board expects an increase in EBIT for 2008. Free cash flow for 2007 is expected to exceed Euro 10 million.

 

CEO Alexander Margaritoff: "Hawesko will use its strength and resources to drive profitable growth in the coming years. In 2007 we are training the vines, so to speak, so that in 2008 the harvest will be even greater."

 

The annual report presented for 2006 confirms the key figures already announced for the past fiscal year: Group sales increased by 5.4% to Euro 302.6 million while the market for wine as a whole grew by 3% in 2006, the first increase in the market since 2003. Thus Hawesko has once again increased its market share. The operating result (EBIT) was at the level of the previous year (Euro 18.6 million after Euro 18.9 million in the previous year), although it was weighed down by some special factors: start-up costs for the new specialist retail concept multiwein were booked at Euro 0.7 million; the changeover of the IT system in mail order resulted in additional costs and hindered sales efforts at times, since advertising mailings were deliberately curtailed during this phase. Consolidated earnings after deductions for taxes and minority interests increased to Euro 10.8 million (previous year: Euro 10.7 million); earnings per share in 2006 were Euro 1.23 (previous year: Euro 1.22). The return on capital employed (ROCE) for 2006 amounted to 18% (previous year: also 18%) and free cash flow Euro 5.6 million (previous year: Euro 17.1 million.) An increase in the ordinary dividend to Euro 0.85 (previous year: Euro 0.70) will be proposed to the annual general meeting on 18 June 2007.

 

Hawesko Holding AG is the leading supplier of premium wines and champagnes. In fiscal year 2006 the Group achieved sales of Euro 303 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 551 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 2006 as well as the three-month report for 2007 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 regarding 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