| 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) |
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