|Consolidated Profit & Loss statement (€m)||H1 2019-2020||H1 2020-2021||Change|
|Recurring operating profit||23.3||21.0||-9.9%|
|Non-recurring operating profit/(loss)||(0.3)||(0.2)|
|Net profit/(loss) from discontinued operations||(1.1)||-|
|Group net profit||14.8||14.2||-4.5%|
Oeneo's 2020-2021 half-yearly consolidated financial statements have been reviewed by the Group's Statutory Auditors and were approved by its Board of Directors on December 2nd, 2020. The half-yearly financial report will be available on the Group's website www.oeneo.com from December 4th, 2020.
Oeneo Group has held up well in the first half of 2020 amid the health crisis, which slowed business mainly during the first quarter. The resilience of its model makes for solid economic indicators, including a high recurring operating margin and a stronger financial position.
Turnover for the period came in at €131.2 million, down 8.3% year on year. The majority of the decrease in turnover was reported in the first quarter, due to restrictive measures introduced due to the health crisis, which strongly disrupted the Group's operations from April to June and reinforced customers' wait-and-see approach. In the second quarter, the Group demonstrated its ability to rebound with business back at prior-year levels and uniform increases across both divisions.
Recurring operating profit totaled €21.0 million, down a contained 9.9% at a similar level to the decrease in turnover, allowing the Group to maintain a solid 16.0% operating margin. These results are all the more satisfying in that they take into account the payment of a one-off Covid bonus of €1.1 million to the Group's employees. The lower absorption of fixed costs due to the business slowdown was for the most part offset by an improvement in the yield from raw materials in both divisions and by productivity gains in Winemaking. The cost of long-term incentive plans for key managers, which take the form of performance share awards, also decreased to €0.4 million (versus €1.1 million in the first half of 2019-2020).
Given the lack of any non-recurring expenses, operating profit came in at €20.7 million. Financial loss amounted to €1.2 million and includes, for the first months of the period, the one-off additional cost of setting up the syndicated loan. Group net profit amounted to €14.2 million, on a par with the first half of the previous year (€14.8 million), in a more complex environment. Discontinued operations have been shut down and no longer have an impact on this year's results.
Shareholders' equity advanced to €299.8 million compared to €271.6 million at September 30, 2019. Net debt (including €6.2 million of debt linked to leases as a result of the application of IFRS 16 "Leases") came to €57.0 million at September 30, 2020, representing a low net gearing ratio of 19.0%.
Cash flow from operations for the period amounted to €7.8 million, mitigated as every year by the seasonal peak in working capital at September 30 (up by €15.2 million since March 31, 2020). It covers almost all of the period's investments, which amount to €8.4 million. Oeneo's cash position remained largely positive at €56.5 million at September 30, 2020.
On the strength of its solid business model, the Group intends to continue consolidating its market shares in the second half while preserving its margins in an environment that remains uncertain, with new restrictions introduced in Europe and the California wildfires that have impacted the 2020 harvest in the US.
Performance review by division
CLOSURES: Recurring operating margin of 17.0%
Oeneo's Closures division reported turnover of €84.6 million, down by just 6.8% at constant exchange rates (down 8.2% at current exchange rates). The positive trend in very high-end Diam closures (biosourced Origine range and Diam 10 and 30) mitigated the crisis-related decrease in mid-range volumes.
The drop in cork prices partially offset a lower absorption of fixed costs due to the decrease in volumes. Recurring operating margin for the period remained solid at 17.0% (down by 1 percent year on year). This performance confirms the division's potential for profitability once more normal conditions resume.
The division has confidence in its capacity to deliver a solid full-year performance despite the persistently uncertain conditions, thanks to the strong loyalty of its existing customers and regular new wins across all geographic regions.
WINEMAKING: Reaping the success of our productivity initiatives
Turnover for the Winemaking division came in at €46.6 million, down 7.8% at constant exchange rates. This represents a resilient performance, despite the health crisis and adverse weather conditions (California wildfires), which led customers to take a wait-and-see approach.
Despite this business slowdown due to the economic context, the division's recurring operating margin advanced to 15.8%, up 0.4 points year on year, reflecting the success of the measures taken to optimize the raw materials yield and improve productivity. The recovery of Etablissements Cenci is also progressing on schedule, with the operating loss contained at €1.0 million over the period (€1.4 million loss in H1 2019-2020).
While expecting a moderate downturn over the full year due to the health crisis, the division aims to consolidate this resilient trend in the second half.
Oeneo Group will publish its turnover for the third quarter of 2020-2021 on January 21st, 2021 .
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).
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
|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
|Anne-Catherine Bonjour |
Press – Media
+33 (0) 1 53 67 36 93
|In thousands of euros||30/09/2019||30/09/2020|
|Property, plant & equipment||127,841||136,246|
|Deferred tax assets and other long-term assets||1,456||2,121|
|Total non-current assets||182,397||192 106|
|Inventories and work in progress||140,924||139,544|
|Trade and other receivables||94,184||84,939|
|Other current assets||2,799||2,874|
|Cash and cash equivalents||25,632||56,447|
|Total current assets||264,062||285,267|
|Assets related to operations held for sale||1,577||393|
|In thousands of euros|
|Reserves and retained earnings||156,060||184,924|
|Profit for the period||14,846||14,177|
|Total shareholders' equity (Group share)||271,607||299,802|
|Total shareholders' equity||271,612||299,754|
|Borrowings and debt||36,062||71,834|
|Other non-current liabilities||8,392||9,383|
|Total non-current liabilities||52,551||87,843|
|Borrowings and short-term bank debt |
(portion due in less than 1 year)
|Provisions (portion due in less than 1 year)||662||412|
|Trade and other payables||49,923||44,627|
|Other current liabilities||3,055||3,553|
|Total current liabilities||123,873||90,168|
|Liabilities related to operations held for sale||-||-|
PROFIT & LOSS
|In thousands of euros||30/09/2019||30/09/2020|
|Other operating income||132||135|
|Cost of goods purchased||(60,136)||(53,304)|
|Depreciation and amortization||(6,739)||(7,730)|
|Other recurring income and expenses||481||421|
|Résultat Opérationnel Courant||23,288||20,981|
|Other non-recurring operating income and expenses||(265)||(237)|
|Income from cash and cash equivalents||129||36|
|Cost of gross debt||(676)||(1 346)|
|Cost of net debt||(548)||(1,310)|
|Other financial income and expenses||(43)||113|
|Profit before tax||22,432||19,546|
|Profit after tax||15,927||14,268|
|Net profit of companies accounted for by the equity method||39||(31)|
|Net income from continuing operations||15,966||14,237|
|Group net profit from continuing operations||15,945||14,177|
|Net profit/(loss) from discontinued operations||(1,141)||-|
|Net profit from consolidated operations||14,825||14,237|
|Group net profit||14,846||14,177|
CASH FLOW STATEMENT
|In thousands of euros||30/09/2019||30/09/2020|
|CASH FLOW LINKED TO OPERATIONS|
|Consolidated net profit||14,825||14,237|
|Profit/(loss) from discontinued operations||(1,141)||-|
|= Consolidated net profit from continuing operations||15,966||14,237|
|Elimination of the share in profit of companies accounted for by the equity method||(39)||31|
|Elimination of amortization and provisions||6,256||7,574|
|Elimination of disposal and dilution gains and losses||(46)||(565)|
|Expenses and income linked to share-based payments||-||(201)|
|Other income and expenses with no impact on cash flow||1,053||356|
|Elimination of the share in profit of companies accounted for by the equity method||(82)||391|
|= Cash flow after cost of net debt and tax||23,108||21,823|
|Cost of net debt||548||1,310|
|= Cash flow before cost of net debt and tax||30,161||28,411|
|Change in WCR linked to operations||(29,316)||(15,211)|
|Net cash flow linked to continuing operations||(5,745)||7,829|
|Net cash flow linked to discontinued operations||(423)||-|
|= Net cash flow linked to operations||(6 168)||7,829|
|FLUX DE TRESORERIE LIES AUX OPERATIONS D'INVESTISSEMENT|
|Impact of changes in scope||-||543|
|Acquisitions of property, plant & equipment and intangible assets||(7,934)||(8,232)|
|Acquisitions of financial assets||-||(1,075)|
|Disposals of property, plant & equipment and intangible assets and financial assets||65||93|
|Disposal of financial assets||-||108|
|Change in loans and advances||(1)||(5)|
|Net cash flow linked to investment activities from continuing operations||(7,870)||(8,367)|
|Net cash flow linked to investment activities from discontinued operations||486||-|
|= Net cash flow linked to investments||(7,384)||(8,367)|
|CASH FLOW LINKED TO FINANCING ACTIVITIES|
|Acquisitions and disposals of treasury shares||28||-|
|Loans issued||6 072||1 425|
|Repayment of loans||(18,670)||(4,188)|
|Net interest paid||(547)||(1,127)|
|Parent company dividends||(969)||-|
|Minority interest dividends||(102)||-|
|Net cash flow linked to financing activities from continuing operations||(14,188)||(3,890)|
|Net cash flow linked to financing activities from discontinued operations||(63)||-|
|= Net cash flow linked to financing activities||(14,251)||(3,890)|
|Impact of changes in foreign exchange rates||21||(143)|
|Change in cash from continuing operations||(27,782)||(4,571)|