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  OENEO company press release from 12/06/2018

  12/06/2018 - 18:00

2017-2018 ANNUAL RESULTS - CONFIRMED GROWTH: TURNOVER +11.9% - RECURRING OPERATING PROFIT +7.3%


Consolidated Profit & Loss statement (€m) 2016-2017 published 2016-2017 ADJUSTED* 2017-2018 published* Change
Turnover 246.6 222.2 248.6 +11.9%
o/w Closures 161.4 137.0 163.1 +19.1%
o/w Winemaking 85.2 85.2 85.5 +0.4%
Recurring operating profit 42.0 43.3 46.5 +7.3%
o/w Closures 30.5 31.7 33.8 +6.3%
o/w Winemaking 16.1 16.1 16.5 +2.8%
o/w Corporate (4.5) (4.5) (3.8)  
Non-recurring operating profit/(loss) (3.6) (3.5) (2.8)  
Operating profit 38.4 39.8 43.6 +9.6%
Financial profit/(loss) (1.1) (0.9) (2.0)  
Tax (10.8) (10.7) (11.1)  
Net profit 26.5 28.2 30.6 +8.4%
Net profit/(loss) from discontinued operations - (1.7) (3.9)  
Group net profit 26.4 26.4 26.6 +0.7%
         
Shareholders' equity 215.3 215.3 229.7 +6.7%
Net debt 50.0 50.0 48.5 -3.0%

 

 

* Oeneo's consolidated statements for financial year 2017-2018** ending 31 March 2018 were approved by its Board of Directors on 11 June 2018. Natural and composite/disk closures production for the Closures division, which are currently in the process of being sold, have been reclassified as Assets held for sale in accordance with IFRS 5, and have been consolidated under Net profit/(loss) from discontinued operations. The financial statements for 2016-2017 have been adjusted for the purpose of comparison with 2017-2018.

 

Oeneo Group continues to post robust results. With growth of 7.3% in recurring operating profit, the Group reported a strong performance for financial year 2017-2018, despite a weaker economic backdrop (lowest global wine production since 1957 and a rise in the price of cork).

Annual organic growth in Group turnover amounted to 11.9% for the year, bolstered by increasing market share for the Closures division's Diam range, and underpinned by a Winemaking division which held up well, despite an 8% drop in global wine production in 2017.

The Group's recurring operating profit came in at €46.5 million (up 7.3%), resulting in a current operating margin of 18.7%. The high impact of the increase in the price of cork notwithstanding, the two divisions are nonetheless growing, boosted by sound cost control at head office.

The Group's operating profit increased 9.6%. Non-current expenses dropped by €2.8 million. Financial expenses of €2 million include an unrealized foreign exchange loss of €0.9 million. The Group's net profit after tax from continuing operations came in at €30.6 million (up 8.4%).

Certain Closures operations in the process of being sold generated a net loss of €3.9 million to reflect the decline in growth for these non-strategic operations. After accounting for this loss, Group consolidated net profit rose by a slight 0.7% to stand at €26.6 million.

Shareholders' equity rose to €229.7 million and, at €29.6 million, cash flow linked to operations more than offset the year's dividend payments and €16.5 million in net investments. Net debt was reduced to €48.5 million, representing a carefully controlled net gearing ratio of 21.1%.

Oeneo will be recommending the payment (with the option of payment in cash or in shares) of a dividend of €0.15 per share at its next Annual General Meeting.

 

Performance review by division

 

CLOSURES: Current operating margin of 20.7%

Oeneo's Closures division had an excellent year, with a 19.1% increase in turnover to €163.1 million. Growth was driven by the worldwide success of the Diam range, which saw value and volume grow by around 20%.

The division's recurring operating profit came in at €33.8 million (up 6.3%), resulting in a current operating margin of 20.7%. Growth in volumes and the careful management of yields and distribution costs made it possible to largely compensate for the impact on gross margin of the increase in the price of cork over the last year, due to exceptionally poor harvest levels. The imbalance between supply and demand for cork should gradually diminish over the course of the current year.

Economic indicators for the Closures division should remain upbeat even if turnover is expected to be more moderate due to a higher basis for comparison and the delayed effect of poor global grape production in 2017.

 

WINEMAKING: Current operating margin of 19.3 %

Recurring operating profit for Oeneo's Winemaking division increased 2.8% for a 0.4% increase in turnover. This performance brings the current operating margin to 19.3%, which is a new annual record for the division.

The optimization of operational productivity made it possible to absorb the expense of increased sales activity in response to economic and weather conditions. The Group is pursuing its efforts to manage operations upstream of the value chain more efficiently and to reduce its raw material costs. The acquisition announced at the end of May of Etablissements Cenci, a specialist in forestry and timber processing, fits perfectly with this strategy.

Drawing on a unique and comprehensive offer, Oeneo is ideally placed to take advantage of the market's potential rebound (depending on 2018 harvest production). The Group also remains alert to opportunities to bolster or complement its high value-added offer with new acquisitions for the division.

 

(**) The consolidated financial statements have been audited in full. The auditors' report will be published once the due diligence procedures required for the publication of the yearly financial report are complete.

 

Oeneo Group will publish its turnover for the first quarter of 2018-2019 on 25 July 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, involving the manufacture and sale of cork closures, including high value?added, technological closures through its Diam closure range and technical closures through its Pietec range;
  • Winemaking, providing high-end solutions in winemaking and spirits for leading market players with the Seguin Moreau, Boisé, Millet and Galileo cooperage brands and developing innovative solutions for the wine industry with Vivelys (R&D, consulting, and 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 Administrative and Financial Officer
+33 (0) 5 45 82 99 93
 
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 31 March 2017 31 March 2018
     
Goodwill 46,069 46,140
Intangible assets 4,889 4,672
Property, plant & equipment 115,354 119,760
Financial assets 720 842
Deferred tax assets and other long-term assets 4,231 1,007
Total Non-Current Assets 171,263 172,421
     
Inventories and work in progress 113,835 105,656
Trade and other receivables 64,834 70,494
Tax receivables 1,180 2,772
Other current assets 2,621 1,879
Cash and cash equivalents 67,353 53,193
Total Current Assets 249,823 233,994
Assets held for sale - 15,657
Total Assets 421,086 422,072
     
     
In thousands of euros    
     
Paid-in capital 62,904 63,181
Share premium 18,642 20,664
Reserves and retained earnings 107,187 119,159
Profit for the period 26,412 26,603
Total Shareholders' Equity (Group share) 215,145 229,606
     
Minority interests 149 132
Total Shareholders' Equity 215,294 229,738
Borrowings and financial debt 89,936 67,492
Employee benefits 3,178 3,431
Other provisions 929 960
Deferred taxes 3,719 2,617
Other non-current liabilities 15,928 8,639
Total Non-Current Liabilities 113,690 83,138
     
Borrowings and short-term bank debt
(portion due in less than 1 year)
27,434 34,170
Provisions (portion due in less than 1 year) 1,299 586
Trade and other payables 56,144 57,613
Other current liabilities 7,225 12,654
Total Current Liabilities 92,102 105,024
Liabilities held for sale - 4,172
     
Total Liabilities 421,086 422,072

 

PROFIT & LOSS

In thousands of euros 31 March 2017
Adjusted*
31 March 2018
     
Turnover 222,188 248,618
Other operating income 1,873 997
Cost of goods purchased (79,690) (100,178)
External costs (35,704) (40,266)
Payroll costs (47,967) (48,423)
Tax (2,177) (2,538)
Depreciation and amortization (12,196) (10,093)
Provisions (3,322) (944)
Change in inventories of finished goods and work in progress 525 430
Other current income and expenses (222) (1,149)
     
Recurring Operating Profit 43,308 46,454
     
Profit/(loss) on disposal of consolidated equity interests - -
Other non-current operating income and expenses (3,500) (2,827)
Operating Profit 39,808 43,627
     
Income from cash and cash equivalents 208 226
Cost of gross financial debt (1,422) (1,301)
Cost of net financial debt (1,214) (1,076)
Other financial income and expenses 301 (911)
Profit before tax 38,895 41,641
     
Income tax (10,707) (11,074)
     
Profit after tax 28,188 30,567
     
Net profit of companies accounted for by the equity method 7 17
Net profit 28,195 30,584
     
Minority interests (47) (48)
Group net profit from recurring operations 28,148 30,536
Group net profit from discontinued operations (1,736) (3,933)
Net profit from consolidated operations 26,459 26,651
Group net profit 26,412 26,603
     
Consolidated earnings per share (in euros) 0.43 0.42
Earnings per share from recurring operations (in euros) 0.46 0.49
Diluted earnings per share from consolidated operations (in euros) 0.42 0.42
Diluted earnings per share from recurring operations (in euros) 0.45 0.49

 

(*) Natural and composite/disk closures production for the Closures division, which are currently in the process of being sold, have been reclassified as Assets held for sale in accordance with IFRS 5, and have been consolidated under Net profit/(loss) from discontinued operations. The financial statements for 2016-2017 have been adjusted for purposes of comparison with 2017?2018.

 

CASH FLOW STATEMENT

In thousands of euros 31 March 2017
Adjusted*
31 March 2018
     
CASH FLOW LINKED TO OPERATIONS    
Consolidated net profit 26,459 26,651
Profit/(loss) from discontinued operations (1,736) (3,933)
Net profit from continuing operations 28,195 30,584
Elimination of the share in profit of companies accounted for by the equity method (7) (17)
Elimination of amortization and provisions 13,861 9,375
Elimination of profit from disposals and gains and losses on dilution 123 (72)
Dividends received from companies accounted for by the equity method - 40
Expenses and income linked to share-based payments 1,506 1,260
Other income and expenses with no impact on cash flow 2,731 1,666
 = Cash flow after cost of net financial debt and tax 46,409 42,836
Tax expense 10,707 11,074
Cost of net financial debt 1,214 1,076
 = Cash flow before cost of net financial debt and taxes 58,330 54,986
Tax paid (6,513) (11,821)
Change in WCR linked to operations (12,444) (13,310)
= Net cash flow linked to recurring operations 39,373 29,855
Net cash flow linked to discontinued operations (53) (212)
= Net cash flow linked to operations 39,320 29,643
     
NET CASH FLOW LINKED TO INVESTMENTS    
Impact of changes in scope (122) (118)
Acquisitions of property, plant & equipment and intangible assets (13,199) (16,313)
Acquisitions of financial assets - (176)
Disposals of property, plant & equipment and intangible assets 1,095 77
Change in loans and advances (64) 35
Net cash flow linked to investment activities from continuing operations (12,290) (16,495)
Net cash flow linked to investment activities from discontinued operations - -
= Net cash flow linked to investments (12,290) (16,495)
     
CASH FLOW LINKED TO FINANCING ACTIVITIES    
Acquisitions and disposals of own shares (464) (3,865)
Loans issued 23,261 15,469
Repayment of loans (33,798) (32,692)
Net financial interest paid (1,214) (1,076)
Parent company dividends (530) (6,480)
Minority interest dividends - (90)
Net cash flow linked to financing activities from continuing operations (12,745) (28,734)
Net cash flow linked to financing activities from discontinued operations (158) (200)
= Net cash flow linked to financing activities (12,903) (28,934)
     
Impact of changes in foreign exchange rate 359 885
Change in cash from continuing operations 14,697 (16,259)
Change in cash from discontinued operations (211) (412)