Translation of the German presentation for the information of our shareholders
Annual General Meeting
Ulrich Zimmermann – Finance Director
2014: Hawesko grew again more than the market
Group sales Germany: |
€ 421 mill. |
+ |
2.9 % |
| outside Germany: |
€
52 mill. |
– |
7.7 % |
| Total Group sales: |
€ 473 mill. |
+ |
1.6 % |
Headwind |
|
|
|
Less demand for Bordeaux en primeur
|
vintage 2011 |
|
|
Closed French subsidiary Château Classic i.L.
Positive factors
- Anniversaries of Jacques' Wein-Depot, Hanseatisches Wein- und Sekt-Kontor
- Continued upgrading of online activities
- Continued strong new-customer acquisition
15 June 2015 3
Specialty wine shops (Jacques' Wein-Depot)
- Sales increase of 4.7 % like-for-like +3.9 %
- 40 year anniversary
- More active customers
- EBIT increased proportionately greater because of better coverage of fixed costs
Wholesale/Distribution
- Sales decline by 3.5 %
- En primeur (subscription) vintage 2011
- Château Classic in Liquidation
- +1.8 % on adjusted basis
- EBIT doubled because closing charges from Château Classic did not recur
5 15 June 2015
Distance selling SALES IN MILL. € EBIT IN MILL. € 9,0 2014 11,1 2013 157,3 2014 149,3 2013
- Segment sales +5.3 %
- 50 year anniversary of Hanseatisches Wein- und Sekt-Kontor hawesko.de
- Repeatedly strong new-customer acquisition
- Online makes up nearly half of sales
- EBIT negatively impacted by lower Bordeaux deliveries
Group EBIT
Group EBIT € 20.1 mill. (previous year: € 22.6 mill.),
Charges in 2014:
- One-off consultancy and defense fees of € 4,8 Mio.
- Lower gains from the Bordeaux en primeur (subscriptions) deliveries
- Further structural investments in the expansion of the group
Development of important operating expenses
| Expense in % of sales |
2013 |
2014 |
| Personnel expense |
11.1 % |
11.1 % |
| Advertising expense |
8.5 % |
8.8 % |
| Delivery expense |
4.3 % |
4.5 % |
|
|
|
- Personnel expense ratio held constant
- Advertising expense increased according to plan because of events and promotions for company anniversaries
- Delivery expense ratio increased due to unfavorable structure of orders, fulfillment in Switzerland transferred to new logistics center
- Legal and consultancy fees represent the largest difference to previous year
15 June 2015 8
One-off charges weigh on earnings
- EBIT decline leaves its mark on net profit
- Financial result was less positive than previous year
- Tax rate declined from 35.4 % to 30.6 %
- Group net profit attributable to shareholders (after minorities): € 14.8 mill. (prev. year: € 16.2 mill.) Per share: € 1.65 (prev. year: € 1.80)
Consolidated balance sheet: equity ratio increased
10 15 June 2015
Cashflow and capital spending
11 15 June 2015
Dividend
- Hawesko share shall remain a dividend share, even after the change-of-control
- The above-average payout ratio of the past shall be gradually lowered.
- Dividend proposal € 1.30 per share
- Payout ratio to be lowered from 92 % last year to 79 % this year
Financial outlook 2015
Orientation:
- Long-term and profitable growth
- Improvement of profitability is the focus of the next two years
- Expected in 2015:
- Sales growth of approx. 1 % against previous year
- EBIT on adjusted basis of € 26–27 mill.
- (2014 adjusted: € 24.6 mill.)
- Extraordinary charges 2015: Mainly personnel provision of € 6 mill.
- Group net profit (unadjusted) of approx. € 12–13 mill.
- Free Cash Flow approx. € 17–20 mill. (2014: € 13 mill.)
Quarterly results for Q1 2015
A good basis for the further course of 2015 in normal operations
- Sales declined according to plan because of extraordinary factors
- Operating margin increased from 3.5 % to 3.9 % adjusted for one-off charges
- On budget to date
Blick in die Zukunft
- Steady and systematic further penetration with our existing trade brands
- Strategic acquisitions possible
- Stronger central functions and stronger force for integrating the decentralised operating units
- Even better realisation of synergies
- Clear shareholder structure supports the longer-term outlook for success
We will become an even stronger market leader!
Thank you!
Annual General Meeting