OENEO : 2017-2018 HALF-YEARLY RESULTS SIGNIFICANT INCREASE IN TURNOVER - RECURRING OPERATING PROFIT UP 10% - GROUP NET PROFIT UP 17.3%

Consolidated Profit & Loss statement (€m)
H1 2016-2017
H1 2017-2018
Change

Turnover
127.8
135.7
+6.2%

o/w Closures
78.4
86.5
+10.4%

o/w Winemaking
49.4
49.2
-0.4%

Recurring operating profit
22.4
24.7
+10.0%

o/w Closures
14.6
16.2
+10.8%

o/w Winemaking
10.1
10.4
+2.7%

o/w Corporate
(2.2)
(1.9)

Non-recurring operating profit/(loss)
(1.7)
(0.7)

Operating profit
20.7
23.9
+15.7%

Financial profit/(loss)
(0.5)
(1.3)

Tax
(6.5)
(6.7)

Net profit
13.7
16.0
+17.3%

Group net profit
13.6
16.0
+17.3%

Shareholders' equity
193.9
219.9
+13.4%

Net debt
79.7
63.5
-20.3%

Oeneo's 2017-2018 half-yearly consolidated financial statements have been reviewed by the Group's Statutory Auditors and were approved by its Board of Directors on 8 December 2017. The half-yearly financial report will be available online on the Group's website www.oeneo.com from 14 December.

Oeneo Group posted a strong performance in the first half of 2017-2018, which saw an improvement in all of its financial indicators.

The Group reported 6.2% growth in turnover for the period, bolstered by new market share for the Closures division and a Winemaking division that held up well despite the impact of weather conditions on global production (cold spring in Europe and drought in the United States).

Benefiting from the improvement in the two divisions' operating margin and the careful management of corporate expenses, recurring operating profit came in at €24.7 million (up 10%), resulting in a current operating margin of 18.2%.

The Group's operating profit increased 15.7% to €23.9 million due to a drop in non-current expenses. The Group's €1.3 million in financial expenses includes an unrealized foreign exchange loss of €0.5 million on intra-group foreign currency receivables. Group net profit came in at €16.0 million, up 17.3%.

Shareholders' equity increased to €219.9 million. After taking into account investments of €5.9 million and a dividend payment of €6.5 million, net debt totaled €63.5 million, resulting in net gearing of 28.9% (compared with 41.1% on 30 September 2016). Net debt will be significantly lower at the end of the period given the seasonal nature of cash flow generation, which is typically higher in the second half of the year.

Performance review by Division

CLOSURES: Current operating margin of 18.7%

Oeneo's Closures division performed very well in the first half of 2017-2018, with organic growth of 10.4% and more than 1.2 billion cork closures sold over the period. Growth was driven by the success of the Diam range, which saw turnover accelerate again to 17%.

Recurring operating profit for the division increased 10.8% to €16.2 million. Efficient cost absorption for the Diam range was able to offset a ramp-up in sales drives and the impact of lower-margin activities for Piedade, which is currently refocusing on products with a higher value-added and has been hit by recent increases in raw materials prices.

The Closures division's strong growth will continue in the second half of the year, going handin-hand with the Diam range's increasing market share and worldwide success period after period.

WINEMAKING: Record current operating margin of 21.1%

Stable activity saw Oeneo's Winemaking division report a current operating margin of 21.1%, which is a new record for the first six months of the year (compared with 20.4% in H1 2016?2017).

This excellent performance was notably due to constant measures to optimize raw material costs and the careful management of production costs. Efficient production gave the division sufficient leeway to boost its sales initiatives in order to mitigate cyclical effects and weather conditions, while continuing to improve its operational margin.

Despite the 8% drop in global wine production, Oeneo Group has held up very well thanks to its premium market positioning and its global operations, which reduce its exposure to a specific geographic region. Despite this rather unfavorable environment, the Winemaking division aims to be on par with its 2016-2017 performance.

Oeneo Group will publish its turnover for the third quarter of 2017-2018 on 22 January 2018 after the markets have closed.

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, 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 in winemaking and spirits for leading market players with Seguin Moreau 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

INFORMATION AND PRESS RELATIONS

Oeneo
Actus Finance

Philippe Doray

Chief 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

APPENDICES

BALANCE SHEET

In thousands of euros
30 September 2017
30 September 2016

Goodwill
45,990
46,034

Intangible assets
4,584
4,820

Property, plant and equipment
114,951
114,337

Financial assets
688
598

Deferred tax assets and other long-term assets
2,090
5,173

Total Non-Current Assets
168,304
170,961

Inventories and work in progress
112,464
113,912

Trade and other receivables
77,902
68,739

Tax receivables
132
568

Other current assets
3,154
3,961

Cash and cash equivalents
57,322
52,487

Total Current Assets
250,975
239,668

Assets held for sale
-
1,238

Total Assets
419,279
411,866

In thousands of euros

Paid-in capital
63,181
61,636

Share premium
20,664
12,219

Reserves and retained earnings
119,990
106,339

Profit for the period
15,996
13,632

Total Shareholders' Equity (Group share)
219,831
193,826

Minority interests
84
123

Total Shareholders' Equity
219,915
193,949

Borrowings and financial debt
81,217
92,148

Employee benefits
3,206
3,184

Other provisions
929
954

Deferred taxes
3,216
3,901

Other non-current liabilities
17,521
14,657

Total Non-Current Liabilities
106,088
114,844

Borrowings and short-term bank debt (portion due in less than 1 year)
39,597
40,013

Provisions (portion due in less than 1 year)
268
1,042

Trade and other payables
47,412
54,672

Other current liabilities
5,998
7,346

Total Current Liabilities
93,275
103,074

Total Liabilities
419,279
411,866

PROFIT & LOSS

In thousands of euros
30 September 2017

30 September 2016

Turnover
135,662

127,750

Other operating income
698

198

Cost of goods purchased
(56,044)

(50,621)

External costs
(21,263)

(19,456)

Payroll costs
(26,004)

(25,750)

Tax
(1,317)

(1,125)

Depreciation and amortization
(5,381)

(6,314)

Provisions
(555)

(2,025)

Change in inventories of finished goods and work in progress
(424)

(183)

Other current income and expenses
(701)

(48)

Recurring Operating Profit
24,672

22,427

Profit/(loss) on disposal of consolidated equity interests
-

-

Other non-current operating income and expenses
(725)

(1,729)

Operating Profit
23,948

20,697

Income from cash and cash equivalents
101

119

Cost of gross financial debt
(777)

(823)

Cost of net financial debt
(676)

(704)

Other financial income and expenses
(594)

207

Profit before tax
22,678

20,200

Income tax
(6,683)

(6,464)

Profit after tax
15,995

13,736

Net profit of companies accounted for by the equity method
26

(83)

Net profit
16,021

13,653

Minority interests
25

21

Group net profit
15,996

13,632

CASH FLOW STATEMENT

In thousands of euros
30 September 2017
30 September 2016

CASH FLOW LINKED TO OPERATIONS

Consolidated net profit
16,021
13,653

Elimination of the share in profit of companies accounted for by the equity method
(26)
83

Elimination of amortization and provisions
4,389
6,538

Elimination of profit from disposals and gains and losses on dilution
(9)
(1)

Dividends received from companies accounted for by the equity method
40
-

Expenses and income linked to share-based payments
628
938

Other income and expenses with no impact on cash flow
820
1,185

= Cash flow after cost of net financial debt and tax
21,863
22,396

Tax expense
6,683
6,464

Cost of net financial debt
676
704

= Cash flow before cost of net financial debt and taxes
29,222
29,564

Tax paid
(4,014)
(908)

Change in WCR linked to operations
(22,064)
(25,226)

= Net cash flow linked to operations
3,144
3,430

CASH FLOW LINKED TO INVESTMENTS

Impact of changes in scope
-
(97)

Acquisitions of property, plant and equipment and intangible assets
(5,974)
(6,788)

Acquisitions of financial assets
(4)
-

Disposals of property, plant and equipment and intangible assets
44
2

Disposals of financial assets
-
-

Change in loans and advances
36
(4)

= Net cash flow linked to investments
(5,898)
(6,887)

CASH FLOW LINKED TO FINANCING ACTIVITIES

Transactions with minority interests

Capital increase
-
-

Acquisitions and disposals of own shares
(3,385)
9

Loans issued
7,661
8,627

Repayment of loans
(16,409)
(22,138)

Net financial interest paid
(656)
(704)

Parent company dividends
(6,480)
(530)

Minority interest dividends
(90)
-

= Net cash flow linked to financing activities
(19,359)
(14,736)

Impact of changes in foreign exchange rates
(654)
103

Change in cash
(22,767)
(18,090)

Opening cash
65,289
50,592

Closing cash
42,522
32,502