| Consolidated Profit & Loss statement (€M) | 2019-2020 | 2020-2021 | Change |
|---|---|---|---|
| Turnover | 290.3 | 272.8 | -6.0% |
| O/w Closures | 195.3 | 185.7 | -4.9% |
| O/w Winemaking | 95.0 | 87.1 | -8.3% |
| Recurring operating profit | 44.3 | 46.0 | +3.9% |
| O/w Closures | 36.2 | 37.8 | +4.3% |
| O/w Winemaking | 11.7 | 10.5 | -10.7% |
| O/w Corporate | (3.6) | (2.2) | N/A |
| Non-recurring operating profit/(loss) | (1.8) | (1.2) | |
| Operating profit | 42.5 | 44.8 | +5.4% |
| Financial profit/(loss) | (1.8) | (1.9) | |
| Tax | (11.2) | (11.3) | |
| Net profit/(loss) from continuing operations | 29.5 | 31.5 | +7.0% |
| Net profit/(loss) from discontinued operations | (1.2) | - | |
| Consolidated net profit/(loss) | 28.3 | 31.5 | +11.5% |
| Consolidated net profit/(loss), Group share | 28.3 | 31.5 | +11.2% |
| Shareholders' equity | 286.8 | 319.5 | +11.4% |
| Net debt | 54.3 | 5.1 | N/A |
Oeneo's consolidated statements for financial year 2020-2021 ended March 31, 2021 were approved by its Board of Directors on June 22, 2021. 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.
Oeneo Group delivered a very strong performance in financial year in 2020-2021, posting resilient turnover despite the health crisis and the California wildfires. Thanks to its operational reactivity and agility, the Group also demonstrated the resilience of its model with an improvement in profitability indicators, strong free cash-flow generation and a sharp reduction in its net debt.
Oeneo Group delivered turnover of €272.8 million in 2020-2021, down by just 6.0% (down 5.1% at constant exchange rates), against a backdrop characterized by the caution exercised by winegrowers, most of whom have reduced their investments during the health crisis, in particular those involved in the café, hotel and restaurant (CHR) business, which has been heavily impacted by restrictions. The Closures division returned to near-normal business levels at the end of the year, confirming its strong sales momentum. The decline is slightly sharper for the Winemaking division, due to the delay in investments as a result of the economic environment.
During the year, the Group took measures to control and optimize its raw materials costs as well as its operating expenses. Oeneo Group reaped the rewards of these measures, with recurring operating profit coming in at €46.0m, €1.7m higher than the previous year (+3.9%). The lower absorption of fixed costs linked to the decline in business was offset by effective control over production costs and a reduction in marketing costs (fewer trade shows and less travel). This performance also factors in a decrease in the cost of long-term incentive plans, in the form of performance shares, from €3.6 million in 2019-2020 to €2.6 million in 2020-2021, and the payment of an exceptional "Covid" bonus of €1.2 million for the Group's employees. Recurring operating margin stood at 16.9% (17.8% excluding performance share costs).
After non-recurring expenses of €1.2 million, operating profit increased 5.4% to €44.8 million. The financial loss was virtually stable at €1.9 million, with the one-time cost of setting up the syndicated loan at the start of the year offset by positive currency effects in the Americas. The amount of tax also remained stable and discontinued operations (discontinued at the start of the year) no longer impacted net profit which came in at €31.5 million, up 11.5%.
Shareholders' equity amounted to €319.5 million, versus €286.8 million at March 31, 2020. Cash flow from operations rose sharply to €68.9 million, thanks to improved results and a significant reduction in working capital of €17.9 million, partly due to the adjustment of inventory levels. It more than covered net investments for the year, which totaled €15.5 million. Free cash flow therefore amounted to more than €53 million, and was directly allocated to servicing debt, reducing gross debt and strengthening the amount of available cash.
Net debt (including €6.1 million in debt linked to leases - IFRS 16 "Leases") decreased sharply to €5.1 million at March 31, 2021 (versus €54.3 million in the prior-year period), representing a very low gearing ratio of 1.6%. Available cash amounted to €80.3 million, consolidating the Group's sound financial position.
In light of these good results, the Board of Directors will propose the payment of a dividend of €0.20 per share at the next Annual General Meeting.
The Group has started 2021-2022 with strengthened fundamentals and market shares. In addition to a favorable basis for comparison, the Group will benefit from a more dynamic business climate from the first quarter, with the recovery in the café, hotel and restaurant business giving its customers better visibility.
2020-2021 performance review by division
CLOSURES: Current operating margin of over 20%
In 2020-2021, turnover for the Closures division amounted to €185.7 million, a slight decline of 4.9%. Nearly 2.3 billion cork-based closures were sold over the year, a performance consolidated by higher market shares in the Americas, particularly in South America, and by very strong sales resilience in France.
Despite the decrease in business, recurring operating profit for the division increased by 4.3% to €37.8 million. Recurring operating margin came in at a high 20.3% (21.1% excluding performance share costs). This remarkable performance, exceeding initial expectations, is based in particular on the price of the cork used, effective production cost management and the decrease in business expenses. The division also continues to reap the benefits of its Opticork plan and the resulting productivity gains.
In 2021-2022, the division aims to return to growth and exceed the €200-million mark while maintaining a recurring operating margin of 20%.
WINEMAKING: Stable recurring operating margin
The Winemaking division posted turnover of €87.1 million, down 8.3% (down 7.4% at constant exchange rates) in a market heavily impacted by the effects of the health crisis and the postponement of investments. However, the Group's diverse offering and its commercial presence across all continents enabled it to mitigate the impact of the economic situation.
Against this backdrop, the Winemaking division succeeded in maintaining a recurring operating margin of 12.0% (12.9% excluding performance share costs) thanks to productivity gains and yield, as well as tight control of expenses, particularly commercial costs. The turnaround in the performance of Etablissements Cenci (renamed Seguin Moreau Ronchamp) also continued, with the operating loss reduced to €1.7 million over the year (from €2.8 million in 2019-2020), of which only €0.7 million was incurred in the second half of the year.
In 2021-2022, the division will continue to focus on measures to optimize productivity and increase profitability in a market where visibility is still uncertain. The wait-and-see approach adopted by customers continues to prevail, due to environmental factors in Europe (spring frost) and the delayed effect of the California wildfires on customers' investments.
Oeneo Group will publish its turnover for the first quarter of 2021-2022 on July 22, 2021 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 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
| 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 | Anne-Catherine Bonjour Media Relations + 33 (0) 1 53 67 36 90 |
APPENDICES
BALANCE SHEET
| In thousands of euros | March 31, 2021 | March 31, 2020 |
| Goodwill | 47,416 | 47,469 |
| Intangible assets | 5,163 | 4,697 |
| Property, plant & equipment | 139,022 | 138,039 |
| Financial assets | 1,903 | 916 |
| Deferred tax assets and other long-term assets | 1,928 | 1,724 |
| Total non-current assets | 195,432 | 192 845 |
| Inventories and work in progress | 129,297 | 138,253 |
| Trade and other receivables | 80,199 | 93,926 |
| Tax receivables | 467 | 1,299 |
| Other current assets | 2,470 | 2,765 |
| Cash and cash equivalents | 80,315 | 53,474 |
| Total current assets | 292,748 | 289,718 |
| Assets held for sale | 366 | 582 |
| Total assets | 488,546 | 422,072 |
| In thousands of euros | ||
| Paid-in capital | 65,052 | 65,052 |
| Share premium | 35,648 | 35,648 |
| Reserves and retained earnings | 187,32 | 157,802 |
| Profit for the period | 31,518 | 28,331 |
| Total shareholders' equity (Group share) | 319,570 | 286,833 |
| Minority interests | (82) | (9) |
| Total shareholders' equity | 319,488 | 286,823 |
| Borrowings and debt | 65,158 | 83,294 |
| Employee benefits | 3,068 | 3,318 |
| Other provisions | 35 | 145 |
| Deferred taxes | 2,152 | 2,827 |
| Other non-current liabilities | 10,871 | 8,280 |
| Total non-current liabilities | 81,284 | 97,864 |
| Borrowings and short-term bank debt (portion due in less than 1 year) | 20,266 | 24,458 |
| Provisions (portion due in less than 1 year) | 266 | 471 |
| Trade and other payables | 63,994 | 70,869 |
| Other current liabilities | 3,248 | 2,643 |
| Total current liabilities | 87,774 | 98,441 |
| Liabilities related to operations held for sale | - | - |
| Total liabilities | 488,546 | 483,144 |
PROFIT & LOSS
| In thousands of euros | March 31, 2021 | March 31, 2020 |
| Turnover | 272,815 | 290,258 |
| Other operating income | 140 | 176 |
| Cost of goods purchased and change in inventories | (107,777) | (123,753) |
| External costs | (43,391) | (45,966) |
| Payroll costs | (55,682) | (55,360) |
| Tax | (2,957) | (3,268) |
| Depreciation and amortization | (15,677) | (14,345) |
| Provisions | (1,598) | (1,860) |
| Other recurring income and expenses | 130 | (1,608) |
| Recurring operating profit | 46,003 | 44,274 |
| Results from the disposal of consolidated companies. | 387 | |
| Other non-recurring operating income and expenses | (1,624) | (1,816) |
| Operating profit | 44,766 | 42,459 |
| Income from cash and cash equivalents | 61 | 35 |
| Cost of gross debt | (2,270) | (1 234) |
| Cost of net debt | (2,209) | (1 199) |
| Other financial income and expenses | 358 | (608) |
| Profit before tax | 42,915 | 40,651 |
| Income tax | (11,284) | (11,164) |
| Profit after tax | 31,632 | 29,481 |
| Profits/ losses of associates | (88) | (5) |
| Minority interests | (26) | 36 |
| Group net profit from continuing operations | 31,518 | 29,517 |
| Group net profit from discontinued operations | - | (1,186) |
| Net profit from consolidated operations | 31,544 | 28,295 |
| Group net profit | 31,518 | 28,331 |
| Consolidated earnings per share (in euros) | 0,49 | 0,44 |
| Earnings per share from continuing operations (in euros) | 0,49 | 0,46 |
| Diluted earnings per share from consolidated operations (in euros) | 0,48 | 0,43 |
| Diluted earnings per share from continuing operations (in euros) | 0,48 | 0,45 |
CASH FLOW STATEMENT
| In thousands of euros | March 31, 2021 | March 31, 2020 |
| CASH FLOW LINKED TO OPERATIONS | ||
| Consolidated net profit | 31,544 | 28,295 |
| Profit/(loss) from discontinued operations | - | (1,186) |
| = Consolidated net profit from continuing operations | 31,544 | 29,481 |
| Elimination of the share in profit of companies accounted for by the equity method | 88 | 5 |
| Elimination of amortization and provisions | 15,323 | 13,434 |
| Elimination of profit from disposals and gains and losses on dilution | (232) | (3) |
| Elimination of dividends | (202) | - |
| Expenses and income linked to share-based payments | 2,085 | 3,178 |
| Other income and expenses with no impact on cash flow | (50) | (52) |
| = Cash flow after cost of net debt and tax | 48,556 | 46,043 |
| Tax expense | 11,284 | 11,164 |
| Cost of net debt | 2,209 | 1,199 |
| = Cash flow before cost of net debt and taxes | 62,049 | 58,406 |
| Tax paid | (11,040) | (12,903) |
| Change in WCR linked to operations | 17,908 | (10,688) |
| Net cash flow linked to continuing operations | 68,917 | 34,815 |
| Net cash flow linked to discontinued operations | - | (206) |
| = Net cash flow linked to operations | 68,917 | 34,609 |
| CASH FLOW LINKED TO INVESTMENTS | ||
| Impact of changes in scope | 543 | - |
| Acquisitions of property, plant & equipment and intangible assets | (15,478) | (18,458) |
| Acquisitions of financial assets | (1,075) | - |
| Disposals of property, plant & equipment and intangible assets | 243 | 475 |
| Disposals of financial assets | 108 | - |
| Dividends received | 202 | - |
| Change in loans and advances | (73) | (24) |
| Net cash flow linked to investment activities from continuing operations | (15,530) | (18,007) |
| Net cash flow linked to investment activities from discontinued operations | - | 488 |
| = Net cash flow linked to investments | (15,530) | (17,519) |
| CASH FLOW LINKED TO FINANCING ACTIVITIES | ||
| Acquisitions and disposals of treasury shares | - | 156 |
| Loans issued | 529 | 73,242 |
| Repayment of loans | (12,643) | (80,799) |
| Net interest paid | (1,843) | (1,198) |
| Parent company dividends | - | (970) |
| Minority interest dividends | - | (102) |
| Net cash flow linked to financing activities from continuing operations | (13,957) | (9,671) |
| Net cash flow linked to financing activities from discontinued operations | - | (283) |
| = Net cash flow linked to financing activities | (13,957) | (9,954) |
| Impact of changes in foreign exchange rates | (21) | (355) |
| Change in cash from continuing operations | 39,409 | 6,782 |
| Opening cash (net of bank overdrafts) | 38,281 | 31,500 |
| Closing cash (net of bank overdrafts) | 77,690 | 38,281 |
| Change in cash (net of bank overdrafts) | 39,409 | 6,781 |
| Net Debt | 5,109 | 54,278 |
| Change in net debt | (49,169) | (5,943) |
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