OENEO : 2021-2022 ANNUAL RESULTS: SHARP INCREASE IN BOTH TURNOVER AND PROFIT - RECURRING OPERATING MARGIN OF 16.6% - CONFIDENCE IN THE LONG-TERM OUTLOOK
Oeneo's consolidated statements for financial year 2021-2022 ended March 31, 2022 were approved by its Board of Directors on June 14, 2022. The consolidated financial statements have been audited in full. The auditors' report will be published once the procedures required for the publication of the annual financial report have been completed.
Oeneo achieved a very good 2021-2022 vintage, characterized by strong growth in business and results, aided by a gradual recovery in investments by winegrowers. The Group reported a record profit, demonstrating the robustness of its short- and medium-term growth trajectory despite the recent health crisis and inflationary pressures.
Turnover came in at €326.0 million for 2021-2022, up 19.5% year-on-year (up 12.2% on 2019-2020). For the first time, the Group surpassed the €300 million in turnover mark. This performance was driven by the very positive growth momentum of the Closures division, which is still gaining market share, and by a recovery in the Winemaking activity, particularly towards the end of the year.
The Group also achieved a record operating profit of €54.0 million, up 17.4% in line with the increase in turnover. The Group was able to weather the increasing inflationary pressure on supplies and production costs during the year, thanks to good control of its operating expenses and its ability to reflect most of the cost increases in its prices. The Group's recurring operating margin reached 16.6% of turnover, in line with its objectives.
Operating profit came in at €49.2 million, up 9.9%, including €4.8 million in non-recurring expenses, mainly consisting of one-off restructuring costs in the Winemaking division.
Net profit fell from €1.0 million to €0.9 million, with the cost of gross debt being mitigated by positive currency effects (particularly from the euro/dollar exchange rate) of €0.5 million. The level of taxes also remained stable, allowing net profit - Group share to rise by 17.9% to €37.1 million.
Shareholders' equity amounted to €338.6 million, versus €319.7 million as of March 31, 2021. Cash flow from operations remained high at €43.6 million, despite a significant increase in working capital of €13.0 million, due to strong growth and the significant securing of inventories amid the context of inflation. This more than covered net investments for the year, mostly targeted at improving the Group's production facilities, which totaled €22.9 million. Free cash flow therefore came in at €20.7 million, most of which was used to service debt. The Group also used €7.6 million in cash for the share buyback program (purchase of 590,217 shares at an average price of €12.77 per share) and €12.9 million for the payment of dividends.
Net debt (including €5.4 million in debt linked to leases – IFRS 16 “Leases”) was restrained to €7.9 million as of March 31, 2022, representing a very low gearing ratio of 2.3%. Available cash amounted to €60.8 million.
Backed by this very healthy financial situation, and the Group's structural cash flow generation, the Board of Directors will propose the payment of an ordinary dividend of €0.30 per share and an exceptional dividend of €0.30 per share in respect of 2021-2022, at the next Annual General Meeting.
Looking ahead to 2022-2023, the Oeneo Group is confident that it will continue its development, albeit at a more moderate pace given the high basis for comparison and the complex economic and geopolitical context. The Group will also continue to pay close attention to its costs in order to preserve its recurring operating profitability.
In the longer term, in response to the growth of the Closures business, the Group is preparing to launch the construction of additional Diam cork production capacity, representing an investment of around €25 million, which should be spread over three years.
2021-2022 performance review by division
CLOSURES: Recurring operating margin was maintained at around 20%
In 2021-2022, the division posted record turnover of €232.6 million (up 25.2% at constant exchange rates). This performance was the result of strong volume growth, with more than 2.7 billion cork closures sold, due in particular to significant gains in market share for Diam closures worldwide.
It also benefited from a favorable price effect linked to the mix and to price increases passed on at the end of the year to reflect the cyclical rise in material and production costs, which was particularly strong in the second half. This responsiveness in pricing and good management of other operating expenses enabled the Group to maintain its recurring operating margin at a high level of 19.9%, representing a record recurring operating profit for the Division of €46.2 million.
In 2022-2023, the Division aims to strengthen its market share gains in all geographical areas and in high value-added segments, while continuing to implement actions to absorb inflationary impacts.
WINEMAKING: Stable recurring operating margin
The Winemaking division returned to growth with a 7.3% increase in sales at constant exchange rates, thanks in particular to a strong year-end. Yearly turnover amounted to €93.4 million, close to the €95.0 million record achieved in 2019-2020, before the health crisis.
The Division also faced significant increases in material costs, particularly wood, and production costs, which weighed on its recurring operating margin. However, the margin remains solid at 11.6%, thanks to good control of structural costs, i.e. a recurring operating profit of €10.8 million. The turnaround in the performance of Etablissements Cenci (renamed Seguin Moreau Ronchamp) also continued, with a €1.2 million reduction in the operating loss over the year (from €1.7 million in 2020-2021).
For 2022-2023, the Division intends to consolidate its growth momentum by relying on the expected recovery in investments by winegrowers after two years marked by a strong wait-and-see approach, particularly in the United States. The Division also aims to at least maintain its recurring operating margin compared to last year.
Oeneo Group will publish its turnover for the first quarter of 2022-2023 on July 21, 2022 after trading.
About OENEO Group
Oeneo Group is a major wine industry player with high-end and innovative brands. Present around the world, the Group covers each stage in the winemaking process through two core and complementary divisions:
Closures, involving the manufacture and sale of cork closures, including high value?added technological closures through its Diam and Pietec ranges. Winemaking, providing high-end solutions in winemaking and spirits for leading market players through its cooperage brands Seguin Moreau, Boisé, Millet, Fine Northern Oak and Galileo, and developing innovative solutions for the wine industry with Vivelys (R&D, consulting, systems).We are passionate about the art and culture of wine, conscious of the urgent environmental and societal challenges facing our world, and firmly believe that enlightened innovation must serve the common good. We want to use our strengths and expertise to serve the wine industry's sustainable development as we innovate to uphold the great history of wine.
WE CARE ABOUT YOUR WINE
INFORMATION AND PRESS RELATIONS
Oeneo Actus Finance Philippe DorayChief Administrative and
Financial Officer
+33 (0)5 45 82 99 93 Guillaume Le Floch
Analysts – Investors
+33 (0)1 53 67 36 70 Fatou-Kiné N'Diaye
Media Relations
+ 33 (0) 1 53 67 36 34
Appendices
Balance sheet
ASSETS March 31, 2022 March 31, 2021 Goodwill 47,458 47,416 Intangible assets 10,140 5,163 Property, plant & equipment 137,914 139,022 Financial assets 2,020 1,903 Deferred taxes 1,752 1,928 Total non-current assets 199,285 195,432 Inventories and work in progress 135,136 129,297 Trade and other receivables 98,947 80,199 Tax receivables 870 467 Other current assets 3,011 2,470 Cash and cash equivalents 60,819 80,315 Total current assets 298,783 292,748 Assets related to operations held for sale 366 366 Total assets 498,434 488,546 LIABILITIES March 31, 2022 March 31, 2021 Paid-in capital 65,052 65,052 Share premium 35,648 35,648 Reserves and retained earnings 200,840 187,602 Profit for the period 37,148 31,518 Total shareholders' equity (Group share) 338,689 319,820 Minority interests (90) (82) Total shareholders' equity 338,599 319,738* Borrowings and debt 58,618 65,158 Employee benefits 2,666 2,730 Other provisions 712 35 Deferred taxes 2,753 2,240 Other non-current liabilities 10,399 10,871 Total non-current liabilities 75,149 81,034 Borrowings and short-term bank debt(portion due in less than 1 year) 10,141 20,266 Provisions (portion due in less than 1 year) 337 266 Trade and other payables 71,019 63,994 Other current liabilities 3,190 3,248 Total current liabilities 84,687 87,774 Liabilities related to operations held for sale - - Total Liabilities and Shareholders' Equity 498,434 488,546
* Restated for Ifric IC IAS 19 impact
Profit and loss statement
In thousands of euros March 31, 2022 March 31, 2021 Turnover 325,999 272,815 Other operating income 1,508 140 Cost of goods purchased and change in inventories (136,184) (107,777) External costs (59,048) (43,391) Payroll costs (57,291) (55,682) Tax (2,177) (2,957) Depreciation and amortization (16,802) (15,677) Provisions (2,142) (1,598) Other recurring income and expenses 135 130 Recurring operating profit 53,998 46,003 Profit/(loss) on disposal of consolidated equity interests - 387 Other non-recurring operating income and expenses (4,818) (1,624) Operating profit 49,180 44,766 Income from cash and cash equivalents 16 61 Cost of gross debt (1,417) (2,270) Cost of net debt (1,402) (2,209) Other financial income and expenses 468 358 Profit before tax 48,247 42,915 Income tax (11,171) (11,284) Profit after tax 37,076 31,632 Net profit of companies accounted for by the equity method 63 (88) Net profit 37,139 31,544 Net income from continuing operations 37,139 31,544 Minority interests 9 (26) Group net profit from continuing operations 37,148 31,518 Group net profit from discontinued operations - - Net profit from consolidated operations 37,139 31,544 Group net profit 37,148 31,518 Consolidated earnings per share (in euros) 0.58 0.49 Earnings per share from continuing operations (in euros) 0.58 0.49 Diluted earnings per share from consolidated operations (in euros) 0.57 0.48 Diluted earnings per share from continuing operations (in euros) 0.57 0.48
CASH FLOW STATEMENT
In thousands of euros March 31, 2022 March 31, 2021 CASH FLOW LINKED TO OPERATIONS Consolidated net profit 37,139 31,544 Profit/(loss) from discontinued operations - - = Consolidated net profit from continuing operations 37,139 31,544 Elimination of the share in profit of companies accounted for by the equity method (63) 88 Elimination of amortization and provisions 18,520 15,323 Elimination of disposal and dilution gains and losses 96 (232) Elimination of dividend income (140) (202) Expenses and income linked to share-based payments 1,068 2,085 Other income and expenses with no impact on cash flow - (50) = Cash flow after cost of net debt and tax 56,620 48,556 Tax expense 11,171 11,284 Cost of net debt 1,402 2,209 = Cash flow before cost of net debt and tax 69,193 62,049 Tax paid (12,526) (11,040) Change in WCR linked to operations (13,047) 17,908 Net cash flow linked to continuing operations 43,621 68,917 Net cash flow linked to discontinued operations - - = Net cash flow linked to operations 43,621 68,917 CASH FLOW LINKED TO INVESTMENTS Impact of changes in scope - 543 Acquisitions of property, plant & equipment and intangible assets (23,320) (15,478) Acquisitions of financial assets - (1,075) Disposals of property, plant & equipment and intangible assets 219 243 Disposals of financial assets - 108 Dividends received 205 202 Change in loans and advances - (73) Net cash flow linked to investment activities from continuing operations (22,896) (15,530) Net cash flow linked to investment activities from discontinued operations - - = Net cash flow linked to investments (22,896) (15,530) CASH FLOW LINKED TO FINANCING ACTIVITIES Acquisitions and disposals of treasury shares (7,653) - Loans issued 1,294 529 Repayment of loans (18,121) (12,643) Net interest paid (1,036) (1,843) Parent company dividends (12,874) - Minority interest dividends - - Net cash flow linked to financing activities from continuing operations (38,390) (13,957) Net cash flow linked to financing activities from discontinued operations - - = Net cash flow linked to financing activities (38,390) (13,957) Impact of changes in foreign exchange rates 293 (21) Change in cash from continuing operations (17,373) 39,409 Opening cash position (net of bank debt) 77,690 38,281 Closing cash position (net of bank debt) 60,318 77,690 Change in cash position (net of bank debt) (17,373) 39,409 Net debt 7,941 5,109 Change in net debt 2,831 (49,169)- SECURITY MASTER Key: lW9wYpxtY26bnGufYZtrmZOZbJxqlpKYbWPLmGdpYprKbGtlmGiVasnJZnBlnm5s
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