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Oeneo : 2024-2025 ANNUAL RESULTS : RECURRING OPERATING MARGIN IMPROVED TO 14.9% - GROWTH IN NET PROFIT AND FREE CASH FLOW
Oeneo : 2024-2025 ANNUAL RESULTS : RECURRING OPERATING MARGIN IMPROVED TO 14.9% - GROWTH IN NET PROFIT AND FREE CASH
About this update from Oeneo Sa
Consolidated Profit & Loss statement ( € M) 2023-2024 2024-2025 Change Turnover 305.7 305.1 -0.2% O/w Closures 211.6 222.5 +5.2% O/w Winemaking 94.2 82.6 -12.3% Recurring operating profit 42.8 45.5 +6.2% O/w Closures 36.1 45.8 +26.6% O/w Winemaking 8.8 3.4 -61.5% O/w Corporate (2.1) (3.7) Non-recurring operating profit/(loss) (1.1) (2.0) Operating profit 41.8 43.5 +4.1% Financial profit/(loss) (4.2) (4.7) Tax (8.7) (9.0) Net profit 28.8 29.8 +3.2% Consolidated net profit, Group share 28.9 29.8 +3.2% Shareholders' equity 315.0 324.8 Net debt 64.2 57.1 Oeneo's consolidated statements for financial year 2024-2025 ended March 31, 2025 were approved by its Board of Directors on June 12, 2025. The consolidated financial statements have been audited in full. The auditors' report will be published once the procedures required for the publication of the annual financial report have been completed. In a challenging wine and spirits market, Oeneo Group achieved a robust 2024-2025, marked by an almost identical level of turnover and increased profitability fueled by the excellent performance of the Closures division. Recurring operating margin for the period stood at 14.9%, up 0.9 points on 2023?2024. Strong cash flow generation made it possible to reduce net debt to 17.6% of shareholders' equity. 2024-2025 turnover came to €305.1 million, virtually unchanged from the previous year. The Closures division posted growth of 5.2%, driven by buoyant sales of Diam closures. In an unfavorable economic climate, which is holding back customers from making investments, the Winemaking division posted a significant decline of 12.3%. The Group posted recurring operating profit of €45.5 million, representing a recurring operating margin of 14.9%, up 6.2% on 2023-2024. Benefiting from a real upturn in business and less pressure on the cork market, the excellent performance of the Closures division more than offset the lower profitability of the Winemaking division. Operating profit amounted to €43.5 million, or 14.3% of turnover, after taking into account a negative €2.0 million in non-recurring items. Net financial expense of €4.7 million includes an increase in gross financial expenses to €5.3 million (versus €4.5 million in 2023-2024) due to the change in average gross debt, partly offset by an improvement in currency effects. After taking a tax expense of €9.0 million into account, net profit, Group share was up by 3.2% to €29.8 million, representing a net margin of 9.8%. Cash flow from operations totaled €53.0 million (compared with €48.7 million in 2023-2024) , comprising higher cash flow after tax of €56.3 million and a controlled rise in working capital requirement (WCR) of €3.3 million. In particular, the Group has strategically increased its cork inventories in order to regain a good level of coverage for Closures. Cash flow from operations more than covers net investments for the year, which amounted to €15.0 million, essentially dedicated to improving the divisions' production facilities. Free cash flow was therefore positive at €38.0 million, up sharply on the previous year (€27.6 million), making it possible to reduce the level of debt, after distribution of the dividend of €22.4 million (€0.35 per share) for the 2023-2024 financial year and the payment of financial expenses (€4.9 million). Equity stood at €324.8 million Net debt (including €5.2 million in debt linked to leases as a result of the application of IFRS 16 “Leases”) amounted to €57.1 million at March 31, 2025, limiting the net gearing ratio to 17.6%. Oeneo maintained a surplus cash position at €39.4 million. The Board of Directors will recommend the payment of an unchanged ordinary dividend of €0.35 per share for 2024-2025 at its next Annual General Meeting. In an economic climate that does no show any clear signs of improvement, Oeneo Group expects 2025-2026 to be a year of consolidation, and is continuing to optimize its costs. 2024-2025 performance review by division CLOSURES: Recurring operating margin of 20.6% (up 3.5 basis points) The division sold almost 2 billion cork closures, bringing turnover for 2024-2025 to €222.5 million, up 5.2%. This performance was driven by more than 8% growth in sales of the Diam range of closures over the period, particularly in the high end segment. Recurring operating profit increased strongly by 26.6% to €45.8 million. Recurring operating margin improved by 3.5 points to 20.6%, returning to historically high levels. The increase in business and a favorable product mix have made it possible to better absorb fixed costs against a backdrop of lower cork prices compared to last year. Looking ahead to 2025-2026, in what continues to be a highly uncertain environment, the Group is committed to consolidating its market share and maintaining a high level of profitability. WINEMAKING: Recurring operating margin of 4.1%, reflecting a lackluster market In a wine market that is marked by historically low world harvest volumes in 2024 and falling consumption, turnover for 2024-2025 fell by 12.3% to €82.6 million. This trend reflects weak demand for barrels and service activities. However, the large containers business grew, while the oak products business held up well thanks to improved sales in the United States. Recurring operating profit came to €3.4 million, down €5.4 million on 2023-2024, giving an operating margin of 4.1%. This drop in profitability can be explained by the threshold effects linked to lower sales, a less favorable product mix and the persistently high costs of raw materials. Recurring operating profit also takes into account the under-performance of its upstream processes, which will undergo a major reorganization in early 2025. The division does not foresee any significant improvement in the market for 2025-2026, and consequently anticipates a level of activity close to that of 2024-2025, and will continue its efforts to adapt its costs to the context. . Oeneo Group will publish its turnover for the first quarter of 2025-2026 on July 21, 2025, 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 through its DIAM, MYTIK and SETOP ranges, and Winemaking, providing high-end solutions in winemaking and spirits for leading market players through its cooperage brands Seguin Moreau, Millet, Galileo and Boisé, and developing innovative solutions for the wine industry with Vivelys (R&D, consulting, and 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 48 17 25 29 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 ASSETS March 31, 2025 March 31, 2024 Goodwill 47,479 47,480 Intangible assets 7,498 8,150 Property, plant & equipment 143,599 144,267 Financial assets 4,302 3,330 Deferred taxes 3,298 2,476 Total non-current assets 206,176 205,703 Inventories and work in progress 169,474 163,013 Trade and other receivables 81,217 88,006 Tax receivables 2,386 2,629 Other current assets 2,443 2,020 Cash and cash equivalents 39,417 40,370 Total current assets 294,938 296,038 Total assets 501,114 501,741 LIABILITIES March 31, 2025 March 31, 2024 Paid-in capital 65,052 65,052 Share premium 35,648 35,648 Reserves and retained earnings 194,294 185,338 Profit for the period 29,767 28,850 Total shareholders' equity (Group share) 324,762 314,889 Minority interests 72 Total shareholders' equity 324,762 314,961 Borrowings and debt 33,667 89,003 Employee benefits 2,356 2,378 Other provisions 17 27 Deferred taxes 4,269 4,500 Other non-current liabilities 8,692 9,133 Total non-current liabilities 49,001 105,041 Borrowings and short-term bank debt (portion due in less than 1 year) 62,846 15,605 Provisions (portion due in less than 1 year) 760 1,031 Trade and other payables 61,297 61,403 Other current liabilities 2,448 3,700 Total current liabilities 127,351 81,739 Total Liabilities and Shareholders' Equity 501,114 501,741 Profit and loss statement In thousands of euros March 31, 2025 March 31, 2024 Turnover 305,120 305,728 Other operating income 273 219 Cost of goods purchased and change in inventories (119,947) (128,293) External costs (54,450) (52,883) Payroll costs (62,365) (59,473) Tax (2,135) (2,097) Depreciation and amortization (20,012) (18,895) Provisions (2,167) (1,902) Other recurring income and expenses 1,146 402 Recurring operating profit 45,463 42,806 Profit/(loss) on disposal of consolidated equity interests - - Other non-recurring operating income and expenses (1,981) (1,052) Operating profit 43,482 41,754 Income from cash and cash equivalents 108 224 Cost of gross debt (5,342) (4,451) Cost of net debt (5,234) (4,226) Other financial income and expenses 571 68 Profit before tax 38,819 37,597 Income tax (9,025) (8,749) Profit after tax 29,794 28,848 Net profit/(loss) of companies accounted for by the equity method (27) 16 Net profit 29,767 28,864 Minority interests - (14) Group net profit 29,767 28,850 Consolidated earnings per share (in euros) 0.46 0.45 Diluted earnings per share from consolidated operations (in euros) 0.46 0.45 CASH FLOW STATEMENT In thousands of euros March 31, 2025 March 31, 2024 CASH FLOW LINKED TO OPERATIONS Consolidated net profit 29,767 28,864 Profit/(loss) from discontinued operations - - Consolidated net profit from continuing operations 29,767 28,864 Elimination of the share in profit/(loss) of companies accounted for by the equity method 27 (16) Elimination of amortization and provisions 20,371 21,245 Elimination of disposal and dilution gains and losses (222) (221) Elimination of dividend income (178) (170) Expenses and income linked to share-based payments 2,415 (925) Other income and expenses with no impact on cash flow - - = Cash flow after cost of net debt and tax 52,180 48,777 Tax expense 9,025 8,749 Cost of net debt 5,234 4,226 = Cash flow before cost of net debt and tax 66,440 61,753 Tax paid (10,145) (9,036) Change in WCR linked to operations (3,255) (3,997) = Net cash flow linked to operations 53,040 48,720 CASH FLOW LINKED TO INVESTMENTS Impact of changes in scope - - Acquisitions of property, plant & equipment and intangible assets (15,077) (21,536) Acquisitions of financial assets (2,117) - Disposals of property, plant & equipment and intangible assets 872 364 Disposals of financial assets 1,350 - Dividends received 178 170 Change in loans and advances (213) (56) = Net cash flow linked to investments (15,007) (21,058) CASH FLOW LINKED TO FINANCING ACTIVITIES Transactions with minority interests (47) - Acquisitions and disposals of treasury shares 13 (9,945) Loans issued 605 51,974 Repayment of loans (11,809) (11,834) Net interest paid (4,868) (2,686) Parent company dividends (22,421) (45,283) Minority interest dividends - - = Net cash flow linked to financing activities (38,527) (17,774) Impact of changes in foreign exchange rates (92) (345) Change in cash from continuing operations (586) 9,543 Opening cash position (net of bank debt) 38,229 28,687 Closing cash position (net of bank debt) 37,642 38,229 This publication embed "🔒 Actusnews SECURITY MASTER ". - SECURITY MASTER Key: mJxqZZecYpuWyXCcl8iZbGeWnJlol5HFaGmdmmhrZ5acam1kypeSbZ2bZnJjl2hm - Check this key: https://www.security-master-key.com . 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