Hamburg, 31 October 2007. The wine trading group Hawesko Holding AG (HAW GR, HAWG.DE, DE0006042708) published its report on the first nine months of fiscal year 2007 as well as the figures for the third quarter today. In the period from 1 July to 30 September 2007, Group sales increased compared to the same quarter of the previous year (Euro 61.7 million) by 15% to Euro 70.7 million before sales taxes. All segments contributed to the increase in sales. The wholesale segment and the mail order segment, which benefited from new customer business, posted especially strong growth of 21% and 23% respectively compared to the same period in the previous year. The consolidated operating result (EBIT) increased to over Euro 1.6 million (previous year: nearly Euro 1.0 million) in the quarter under review. This is due to the positive earnings situation in the wholesale segment, especially in the business with the premium Bordeaux wines of the subsidiary Château Classic, which is domiciled in Bordeaux. As a consequence of the tax reform ratified by the Bundesrat in July, as previously reported, the deferred tax assets have been written down by Euro 3.0 million in the quarter under review. Thus consolidated earnings (after deductions for taxes and minority interests) amounted to Euro -2.5 million (same quarter of the previous year: Euro 0.3 million).

 

According to a survey of the Gesellschaft für Konsumforschung (GfK), during the period between January and September 2007, the overall wine market in Germany grew by 1.6% compared to the same period of the previous year, taking into account the rise in VAT. Particularly noteworthy is the significant improvement in the second and third quarters after the wine market suffered a decline of 2.3% in the first three months of the year under the influence of the increase in VAT. The Hawesko Group once again outperformed the overall wine market and gained additional market share: In the first nine months of the current fiscal year (1 January to 30 September 2007), the Group posted sales of Euro 217.1 million, an increase of 12% over the first nine months of the previous year (Euro 194.6 million). The operating result of Hawesko Holding AG amounted to Euro 5.1 million (same period of the previous year: Euro 5.9 million) in the first nine months of 2007. Due to the impact of the aforementioned tax reform, consolidated earnings after deductions for taxes and minority interests amounted to Euro -1.0 million (same period of the previous year: Euro 3.2 million).

 

The Hawesko management board confirmed the targets for operations for the year 2007 overall: an increase in sales (previous year's sales figure: Euro 303 million) and EBIT at the same level as last year (Euro 18.6 million). The general economic and business conditions are still considered good. They may also provide an added boost to the measures taken to expand the customer base.

 

Chief executive officer Alexander Margaritoff stated: "During the fiscal year so far, we've made good progress in the implementation of our growth plans and are therefore optimistic about the all-important fourth quarter, in which - like every year - the holiday gift sales play a major role. The current trends are clearly in our favor, particularly the consumers' resurgent desire for quality and enjoyment as well as the end of the "cheap is cool" fad. We have long relied on the premium qualities in our selection of wines and will continue to do so in the future, benefiting from the shift in customer preferences toward these qualities."

 

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 551 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.

 

     #     #     #

 

The complete nine-month report for 2007 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 profile)
http://www.hawesko.com  (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