H1 2016-2017: CONTINUED STRONG GROWTH IN RESULTS NET PROFIT: +17%

6 December 2016

 

Consolidated Profit & Loss statement (€m)
H1 2015-2016
H1 2016-2017
Change


Turnover
99.5
127.8
+28.4%


o/w Closures
52.4
78.4
+49.7%


o/w Winemaking
47.1
49.4
+4.7%


Current operating PROFIT
19.9
22.4
+12.6%


o/w Closures
11.6
14.6
+25.4%


o/w Winemaking
9.6
10.1
+4.6%


o/w Corporate
(1.4)
(2.2)
 


Non-current operating profit
(1.9)
(1.7)
 


Operating profit
18.0
20.7
+15.0%


Financial profit
(1.1)
(0.5)
 


Tax
(5.2)
(6.5)
 


Net profit
11.6
13.6
+17.2%


Group net profit
11.6
13.6
+17.1%


 
 
 
 


Shareholders' equity
169.8
193.9
+14.2%


Net debt
90.6
79.7
-12.0%

Oeneo's 2016-2017 half-yearly consolidated financial statements have been reviewed by the Group's Statutory Auditors and were approved by its Board of Directors on 5 December 2016. The half-yearly financial report will be available online on the Group's website www.oeneo.com from 7 December

 

OENEO enjoyed a very strong first half in 2016-2017, marked by robust organic growth (+8.7%), the ongoing integration of Piedade (no impact in the first half of 2015-2016) and another major increase in results. The Group's overall performance was all the more satisfying given a weaker backdrop than last year, notably for the Winemaking division.

Current operating profit for the period amounted to €22.4 million, resulting in a current operating margin of 17.6%. Other non-current operating income and expenses amounted to -€1.7 million, down 10% on the previous year and resulting in a Group operating profit of €20.7 million.

Group net profit for the first half of 2016-2017 came in at €13.6 million, up 17.1% on the back of a strong operating performance.

Group shareholder equity increased to €193.9 million on 30 September 2016. Year-on-year, net debt was consistent with forecasts, dropping to €79.7 million thanks to cash flow from operations and despite the temporary and seasonal increase in WCR at 30 September linked to the strategic stockpiling of wood. Net gearing came in at 41.1%, which is a substantial drop on 30 September 2015 (53.4%). This trend is expected to continue over the second half.

 

Oeneo's Closures division performed extremely well over the first half of 2016-2017, with global sales up by nearly 50% (nearly 12% in organic terms) and sales for cork-based closures exceeding the one-billion mark over the first six months of the year. 2016-2017 will see the Group break the symbolic barrier of 2 billion closures sold and cement its ranking as the world number two in cork closures.

The division's current operating margin for the period amounted to 18.6%, which is in line with the roadmap that factors in the consolidation of Piedade. What is more, this performance is also slightly higher than that reported for the second half of 2015-2016 when Piedade was already fully consolidated.

The integration of Piedade, acquired on 16 September 2015, is proceeding according to plan, and the repositioning of the division's ranges and improvement in its raw material costs thanks to the expertise developed with Diam will also contribute to a progressive improvement in activity margins in the years ahead.

The coming months will see Oeneo continue to implement the industrial and commercial synergies to be had across its different sites which will leverage a gradual increase in profitability in the future.

 

WINEMAKING: Current operating margin: 20.4%

Oeneo's Winemaking division's ability to repeat the outstanding performance it posted in the first half of 2015-2016 is confirmation of solid foundations that are able to withstand a less favorable business climate.

Organic growth was in line with the plan to deliver new growth of 5% over the first six months of 2016-2017, with the division enjoying a commensurate increase in current operating profit and exceeding the €10 million-mark over a six-month period for the first time. This strong performance is the result of the careful management of operating costs, both in terms of raw materials and overheads, by Seguin Moreau, and Vivelys' significant contribution to Group results over the period. All told, the division's current operating margin came in at 20.4%, underpinned by the usual strong seasonal trends seen in the first half.

 

Impacted by adverse weather conditions in most wine-producing regions, world harvests are expected to drop by around 5% on 2015 to one of the lowest levels seen for 20 years. (Source: OIV report on the World Vitiviniculture Situation, Oct. 2016).

Despite the current highly unusual backdrop, Oeneo should still see an increase in turnover (albeit more moderate) over the second half of the year, thanks notably to its closures activity. Constant innovation combined with a dynamic and exhaustive offer for closures and a successful and unique product and services offering for winemaking, will ensure new market share, with careful cost management across the board also consolidating the company's very strong level of profitability.

The Group's goal is to continue to reinforce and develop the fundamentals it needs to ensure it is ideally placed to capitalize on a robust outlook for all of its markets without ruling out possible acquisitions.

 

 

 

OENEO 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, which manufactures and sells cork closures, including high value-added technological closures through its DIAM range and traditional closures through its Piedade range.

Winemaking, which provides high-end solutions for winemaking and spirits for leading market players and develops innovative solutions for the wine industry with Vivelys (R&D, consulting, systems).

Oeneo prides itself in offering solutions in the production, maturing, preservation and enhancement of wines or spirits that faithfully convey all of the emotion and passion of each winegrower and improve their performance.

WE CARE ABOUT YOUR WINE

 

 

Philippe Doray

Chief Administrative and Financial Officer

+33 (0)1 44 13 44 81

 
Guillaume Le Floch

Analysts – Investors

+33 (0) 1 53 67 36 70
Alexandra Prisa

Press – Media

+33 (0) 1 53 67 36 90

 

 

French limited company with a capital of 62,740,656 euros

Head Office: 21 Boulevard Haussmann - 75009 PARIS

Tel. +33 (0) 1 58 36 10 93 - Fax +33 (0) 1 58 36 10 99

www.oeneo.com

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