Actusnews Wire - Professional broadcaster of corporate and regulated information, authorised by the AMF and the CSSF.

  OENEO company press release from 12/12/2017

  12/12/2017 - 18:00

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