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Hawesko: Third quarter confirms outlook for 2011
(November 04, 2011) Hamburg, 4 November 2011. Today the wine-trading group Hawesko Holding AG (HAW GR, HAWG.DE, DE0006042708) published its report on the first nine months of fiscal year 2011 as well as the figures for the third quarter. During the quarterly period from 1 July to 30 September the Group increased its sales compared to the same quarter in the previous year (€ 83.1 million) by 6% to € 88.1 million net of sales tax. The recovery in the markets for Bordeaux wines in the second half of the previous year resulted in the wholesale segment having to compete against a base that was significantly higher than in the first six months. Despite this, sales in the wholesale segment rose by 6% during the third quarter. The unseasonably low temperatures dampened demand for the typical summer wines advertised in the mail order segment, so that sales here rose by only 3%. The marketing activities in the specialist wine retail segment (Jacques' Wein-Depot) proved successful and contributed to sales growth of 9%. The consolidated operating result (EBIT) declined by 19% to € 3.6 million in the third quarter of 2011 (previous year: € 4.5 million). This was due to mail order sales being lower than expected as well as the start-up costs incurred for the new market presence in Sweden (The Wine Company). Consolidated net income after deductions for taxes and non-controlling interests for the quarter amounted to € 2.3 million and € 0.25 per share (same quarter in the previous year: € 3.1 million and € 0.34 per share). During the first nine months (January to September) 2011 sales of the Hawesko Group rose by 12% compared to the previous year (€ 247.4 million) to € 276.1 million. The operating result (EBIT) of Hawesko Holding AG for the first nine months amounted to € 13.7 million, thus remaining at the same level as in the corresponding period of the previous year. Consolidated net income after deductions for taxes and non-controlling interests amounted to € 8.9 million or € 0.99 per share, below the previous year's figures of € 11.1 million or € 1.24 per share. In the previous year this figure included non-recurring income of € 3.3 million from the sale of a financial shareholding; adjusted for this non-recurring effect, consolidated net income amounted to € 7.8 million or € 0.88 per share. The Hawesko management board notes that the environment in the first nine months was more favourable than predicted in the annual report. Business performance in the third quarter of 2011 confirms the estimate, last expressed in the six-month report, that growth would slow to a certain extent in the second half of 2011. The significantly higher comparative base was felt particularly in the wholesale segment in the further course of the year. Thus, the management board reaffirms its forecast of sales growth in the low to middle single-digit percentage range and EBIT at the previous year's good level of € 24-26 million. The EBIT forecast includes in particular the start-up costs to continue the entry into the Swedish market (The Wine Company), the costs to adapt the infrastructure to the growth of the wholesale segment and the additional costs connected with a larger number of new openings of Jacques' Wein-Depots. The management board is optimistic about the likelihood of reaching the upper end of the forecast range. Several higher estimates are in the market, and it is not ruled out that these could be achieved as well. In any case business performance in the fourth quarter, like every year, is very important for the Hawesko Group. The financial result is expected to show a net expenditure of less than € 0.5 million and a tax rate of just under 32% (2010: net income of € 1.8 million after an extraordinary financial gain, tax rate of 26%) and thus a consolidated net profit below that of 2010 (€ 20.0 million excluding shares of non-controlling interests). Free cash flow is expected to be in the range of roughly € 15 million for 2011. The management board expects another increase in sales, EBIT and consolidated net income and free cash flow in the range of € 20 million for 2012. CEO Alexander Margaritoff: "Based on the development in the quarter under review, we reaffirm our previous forecasts for fiscal year 2011. We don't want to rule out the somewhat higher results expected by some analysts, but like every year, this will depend on the holiday mood of the consumers and their willingness to indulge their loved ones (or themselves) with some good wine. In any case, we will continue to pursue our sustainable and judicious course of growth and are now focusing completely on the most important season of the year." Hawesko Holding AG is a leading supplier of premium wines and champagnes. In fiscal year 2010, the Group achieved sales of € 378 million and employed 696 persons in the company's three sales channels: specialty retail (Jacques' Wein-Depot), wholesale (Wein Wolf and CWD Champagner- und Wein-Distributionsgesellschaft) and mail order (especially Hanseatisches Wein- and Sekt-Kontor). The shares of Hawesko Holding AG are listed on the Hanseatic Stock Exchange in Hamburg as well as in the SDAX small-cap index of the Frankfurt Stock Exchange. The third-quarter financial report to 30 September 2011 will be available at http://www.hawesko-holding.com, "Investor Relations" --> "Financial Info" --> "Financial Reports". Publisher: Internet: Press/Media: Investor Relations: |