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Oeneo : 2023-2024 FIRST-HALF RESULTS - RECURRING OPERATING MARGIN IN LINE WITH EXPECTATIONS
Oeneo : 2023-2024 FIRST-HALF RESULTS - RECURRING OPERATING MARGIN IN LINE WITH
About this update from Oeneo Sa
Consolidated Profit & Loss statement ( € M) H1 2022-2023 % of turnover H1 2023-2024 % of turnover Turnover 173.2 154.3 O/w Closures 118.9 100.6 O/w Winemaking 54.3 53.8 Recurring operating profit 29.1 16.8% 20.3 13.1% O/w Closures 21.3 17.9% 13.7 13.6% O/w Winemaking 8.5 15.7% 7.1 13.2% O/w Corporate (0.7) (0.4) Non-recurring operating profit/(loss) (0.4) 0.3 Operating profit 28.7 16.6% 20.6 13.3% Financial profit/(loss) 0 (1.0) Tax (6.9) (4.9) Net profit 21.9 12.6% 14.7 9.5% Net profit, Group share 21.9 12.6% 14.7 9.5% Shareholders' equity 325.1 310.9 Net debt 15.2 46.3 Oeneo's 2023-2024 half-yearly consolidated financial statements have been reviewed by the Group's Statutory Auditors and were approved by its Board of Directors on December 6, 2023. The half-yearly financial report will be available on the Group's website www.oeneo.com from December 7, 2023. In a difficult economic context, Oeneo Group is proving resilient and posting solid financial indicators, with recurring operating margin of 13.1% in line with expectations, and a financial position that remains healthy thanks to the Group's low level of debt. The Group faced a cyclical slowdown in its business combined with continuing strong pressure on raw material prices in the first half of the year, with a high comparison basis given the record results achieved in the first half of the previous year. Turnover was down 10.9%, coming in at €154.3 million (down 10.6% at constant exchange rates) . The Closures division's sales volumes for entry-level and mid-range segments were down in a recessionary and more competitive global wine market. The Winemaking division, on the other hand, showed good resilience, staying very close to the previous year's record level, and even expanding, excluding wood trading, thanks to favorable harvests in its main wine-growing regions. The Group's profitability was adversely impacted by lower turnover in the Closures division, and by raw material costs (wood and cork) still higher than in the previous year, affecting the gross margin despite past price increases. Recurring operating margin came in at 13.1%, in line with expectations . After non-recurring items, operating income came to €20.6 million, or 13.3% of sales. Financial loss came in at €1.0 million, including €1.4 million in gross financial expenses, linked to the rise in market rates and the change in average net debt, and hedging gains of €0.4 million. After taking a tax expense of €4.9 million into account, net profit, Group share came to €14.7 million, compared with €21.9 million at September 30, 2022, representing a net margin of 9.5%. Shareholders' equity stood at €310.9 million , compared with €325.1 million at September 30, 2022, after the dividend payment of €45.3 million (€0.70 per share, including a special dividend of €0.35) for 2022-2023. Net financial debt (including €4.9 million of debt linked to leases as a result of the application of IFRS 16 “Leases”) came to €46.3 million at September 30, 2023 . The net gearing ratio remained low at 14.9% of shareholders' equity . Cash flow used in operations for the period amounted to €0.3 million , due to the seasonal peak in working capital at September 30 (up €25.8 million compared to March 31, 2023). Net investments for the period came to €12.0 million and were mainly dedicated to improving the production base. The third quarter, still marked by the correction of distributor inventories and difficult environment for clients, will not see any improvement in this trend. Although visibility is still uncertain, the Group nevertheless expects to see a stronger fourth quarter, thanks to the end of inventory adjustments by distribution channels and a more favorable comparison base. For the 2023-2024 financial year, Oeneo expects a slightly better recurring operating margin than in the first half, as raw material prices begin to improve. Performance review by division CLOSURES: Recurring operating margin of 13.6% The Closures Division delivered turnover of €100.6 million, down 15.4% versus the record first-half 2022-2023 performance. The downturn remains mainly centered on entry-level and mid-end ranges, especially as the Group has strategically withdrawn from certain non-Diam markets. Business was also disrupted by the return to normal inventory levels at certain distributors in Southern Europe and the United States. Business remains buoyant for the high-end Diam range, particularly in France. Recurring operating margin fell by 4.3 points to 13.6%, reflecting the cyclical downturn in volumes and the impact of the historically high cost of cork consumed (inventory stockpiled when inflation peaked in 2022-2023), which weighed heavily on gross margin. These unfavorable effects were partly offset by tight control of production and sales costs, as well as the already visible drop in the prices of certain inputs, logistics and energy costs. The Division expects to see an improvement as of the fourth quarter, with the expected recovery in orders from partner distributors and it will pay particular attention to all its costs in order to maintain a solid gross margin. WINEMAKING: Recurring operating margin of 13.2% The Winemaking Division posted turnover half-year sales of €53.8 million, more or less identical to the record posted in first-half 2022-2023. The Division's growth (up 2.9% excluding wood trading) was driven by the good performance of the strategic barrels segment, thanks to buoyant business in the Americas. Recurring operating margin for the period fell to 13.2%, down 2.5 points from first-half 2022-2023. It was negatively affected by the continuing sharp rise in material costs (wood) and slightly higher sales costs in a more demanding international competitive environment. Despite an unfavorable comparison base in the third quarter, the Division aims to stay close to the previous year's record business level in its activities, excluding wood trading, which will be significantly down. The implementation of strong levers for operational improvement continues. Oeneo Group will publish its turnover for the third quarter of 2023-2024 on January 22, 2024, after trading 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 under the Diam, Mytik Diam and Setop brands. 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). We are passionate about the art and culture of wine, conscious of the urgent environmental and societal challenges facing our world, and firmly believe that enlightened innovation must serve the common good. We want to use our strengths and expertise to serve the wine industry's sustainable development as we innovate to uphold the great history of wine. 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 Fatou-Kiné N'Diaye Press – Media +33 (0) 1 53 67 36 34 / Appendices BALANCE SHEET In thousands of euros September 30, 2022 September 30, 2023 Goodwill 47,569 47,496 Intangible assets 10,359 9,036 Property, plant & equipment 139,206 143,887 Financial assets 1,966 3,272 Deferred tax assets and other long-term assets 1,345 2,458 Total non-current assets 200,445 206,150 Inventories and work in progress 154,955 171,148 Trade and other receivables 103,922 89,088 Tax receivables 285 233 Other current assets 4,889 2,982 Cash and cash equivalents 64,354 16,127 Total current assets 328,405 279,578 Assets related to operations held for sale - - Total assets 528,850 485,728 In thousands of euros Paid-in capital 65,052 65,052 Share premium 35,648 35,648 Reserves and retained earnings 202,487 195,483 Profit for the period 21,895 14,694 Total shareholders' equity (Group share) 325,083 310,877 Minority interests 58 65 Total shareholders' equity 325,141 310,942 Borrowings and debt 54,950 45,376 Employee benefits 2,251 2,389 Other provisions 712 0 Deferred taxes 3,408 4,058 Other non-current liabilities 10,084 9,272 Total non-current liabilities 71,405 61,095 Borrowings and short-term bank debt (portion due in less than 1 year) 24,628 17,036 Provisions (portion due in less than 1 year) 508 749 Trade and other payables 103,865 94,467 Other current liabilities 3,303 1,440 Total current liabilities 132,304 113,691 Liabilities related to operations held for sale - - Total liabilities 528,850 485,728 PROFIT & LOSS In thousands of euros 9 months ended September 30, 2022 9 months ended September 30, 2023 Turnover 173,179 154,304 Other operating income 154 618 Cost of goods purchased (68,188) (67,225) External costs (35,498) (26,303) Payroll costs (30,463) (30,725) Tax (1,130) (1,198) Depreciation and amortization (8,919) (8,991) Provisions (533) (751) Other recurring income and expenses 510 561 Recurring operating profit 29,112 20,290 Other non-recurring operating income and expenses (372) 297 Operating profit 28,739 20,587 Income from cash and cash equivalents 30 116 Cost of gross debt (640) (1,479) Cost of net debt (611) (1,363) Other financial income and expenses 602 373 Profit before tax 28,731 19,598 Income tax (6,913) (4,909) Profit after tax 21,818 14,689 Net profit of companies accounted for by the equity method 73 11 Net income from continuing operations 21,891 14,700 Minority interests 4 (7) Net profit from consolidated operations 21,891 14,700 Net profit, Group share 21,895 14,693 CASH FLOW STATEMENT In thousands of euros 9 months ended September 30, 2022 9 months ended September 30, 2023 CASH FLOW LINKED TO OPERATIONS = Consolidated net profit from continuing operations 21,891 14,700 Elimination of the share in profit of companies accounted for by the equity method (73) (11) Elimination of depreciation, amortization and provisions 9,062 9,291 Elimination of disposal and dilution gains and losses (405) 34 Elimination of dividend income (170) (170) Expenses and income linked to share-based payments 1,142 27 Other income and expenses with no impact on cash flow - - = Cash flow after cost of net debt and tax 31,447 23,871 Tax expense 6,913 4,909 Cost of net debt 611 1,363 = Cash flow before cost of net debt and tax 38,970 30,143 Tax paid (4,864) (4,606) Change in WCR linked to operations (31,892) (25,823) = Net cash flow linked to operations 2,124 (287) CASH FLOW LINKED TO INVESTMENTS Impact of changes in scope - - Acquisitions of property, plant & equipment and intangible assets (7,812) (12,161) Acquisitions of financial assets - - Disposals of property, plant & equipment and intangible assets and financial assets 765 52 Disposals of financial assets - - Dividends received 170 170 Change in loans and advances (40) (4) = Net cash flow linked to investments (6,917) (11,943) CASH FLOW LINKED TO FINANCING ACTIVITIES Transactions with minority shareholders (243) - Acquisitions and disposals of treasury shares 84 (1,570) Loans issued 4,629 1,000 Repayment of loans (3,251) (2,783) Net interest paid (428) (1,041) Parent company dividends - - Minority interest dividends - - = Net cash flow linked to financing activities 791 (4,395) Impact of changes in foreign exchange rates 286 (101) Change in cash from continuing operations (3,716) (16,726) This publication embed "🔒 Actusnews SECURITY MASTER ". - SECURITY MASTER Key: yGhykZdoY26dxnBrk5ptmpSVbJeWl2DJmWfJmWhoapmbaXJnmWiTaMeaZnFkl2Zr - Check this key: https://www.security-master-key.com . Regulated information: Inside Information: - News release on accounts, results Full and original press release in PDF: https://www.actusnews.com/news/83215-oeneo-cp-rs-2023-2024-vf-gb.pdf Receive by email the next press releases of the company by registering on www.actusnews.com , it's free © 2023 ActusNews