Consolidated Profit & Loss statement (€m) | H1 2016-2017 | H1 2017-2018 | Change |
---|---|---|---|
Turnover | 127.8 | 135.7 | +6.2% |
o/w Closures | 78.4 | 86.5 | +10.4% |
o/w Winemaking | 49.4 | 49.2 | -0.4% |
Recurring operating profit | 22.4 | 24.7 | +10.0% |
o/w Closures | 14.6 | 16.2 | +10.8% |
o/w Winemaking | 10.1 | 10.4 | +2.7% |
o/w Corporate | (2.2) | (1.9) | |
Non-recurring operating profit/(loss) | (1.7) | (0.7) | |
Operating profit | 20.7 | 23.9 | +15.7% |
Financial profit/(loss) | (0.5) | (1.3) | |
Tax | (6.5) | (6.7) | |
Net profit | 13.7 | 16.0 | +17.3% |
Group net profit | 13.6 | 16.0 | +17.3% |
Shareholders' equity | 193.9 | 219.9 | +13.4% |
Net debt | 79.7 | 63.5 | -20.3% |
Oeneo's 2017-2018 half-yearly consolidated financial statements have been reviewed by the Group's Statutory Auditors and were approved by its Board of Directors on 8 December 2017. The half-yearly financial report will be available online on the Group's website www.oeneo.com from 14 December.
Oeneo Group posted a strong performance in the first half of 2017-2018, which saw an improvement in all of its financial indicators.
The Group reported 6.2% growth in turnover for the period, bolstered by new market share for the Closures division and a Winemaking division that held up well despite the impact of weather conditions on global production (cold spring in Europe and drought in the United States).
Benefiting from the improvement in the two divisions' operating margin and the careful management of corporate expenses, recurring operating profit came in at €24.7 million (up 10%), resulting in a current operating margin of 18.2%.
The Group's operating profit increased 15.7% to €23.9 million due to a drop in non-current expenses. The Group's €1.3 million in financial expenses includes an unrealized foreign exchange loss of €0.5 million on intra-group foreign currency receivables. Group net profit came in at €16.0 million, up 17.3%.
Shareholders' equity increased to €219.9 million. After taking into account investments of €5.9 million and a dividend payment of €6.5 million, net debt totaled €63.5 million, resulting in net gearing of 28.9% (compared with 41.1% on 30 September 2016). Net debt will be significantly lower at the end of the period given the seasonal nature of cash flow generation, which is typically higher in the second half of the year.
Performance review by Division
CLOSURES: Current operating margin of 18.7%
Oeneo's Closures division performed very well in the first half of 2017-2018, with organic growth of 10.4% and more than 1.2 billion cork closures sold over the period. Growth was driven by the success of the Diam range, which saw turnover accelerate again to 17%.
Recurring operating profit for the division increased 10.8% to €16.2 million. Efficient cost absorption for the Diam range was able to offset a ramp-up in sales drives and the impact of lower-margin activities for Piedade, which is currently refocusing on products with a higher value-added and has been hit by recent increases in raw materials prices.
The Closures division's strong growth will continue in the second half of the year, going handin-hand with the Diam range's increasing market share and worldwide success period after period.
WINEMAKING: Record current operating margin of 21.1%
Stable activity saw Oeneo's Winemaking division report a current operating margin of 21.1%, which is a new record for the first six months of the year (compared with 20.4% in H1 2016?2017).
This excellent performance was notably due to constant measures to optimize raw material costs and the careful management of production costs. Efficient production gave the division sufficient leeway to boost its sales initiatives in order to mitigate cyclical effects and weather conditions, while continuing to improve its operational margin.
Despite the 8% drop in global wine production, Oeneo Group has held up very well thanks to its premium market positioning and its global operations, which reduce its exposure to a specific geographic region. Despite this rather unfavorable environment, the Winemaking division aims to be on par with its 2016-2017 performance.
Oeneo Group will publish its turnover for the third quarter of 2017-2018 on 22 January 2018 after the markets have closed.
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, which manufactures and sells cork closures, including high value-added technological closures through its Diam range and traditional closures through its Piedade range.
- Winemaking, which provides high-end solutions in winemaking and spirits for leading market players with Seguin Moreau and develops 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 Financial Officer +33 (0)1 44 13 44 81 |
Guillaume Le Floch Analysts – Investors +33 (0) 1 53 67 36 70 |
Alexandra Prisa Press – Media +33 (0) 1 53 67 36 90 |
APPENDICES
BALANCE SHEET
In thousands of euros | 30 September 2017 | 30 September 2016 |
Goodwill | 45,990 | 46,034 |
Intangible assets | 4,584 | 4,820 |
Property, plant and equipment | 114,951 | 114,337 |
Financial assets | 688 | 598 |
Deferred tax assets and other long-term assets | 2,090 | 5,173 |
Total Non-Current Assets | 168,304 | 170,961 |
Inventories and work in progress | 112,464 | 113,912 |
Trade and other receivables | 77,902 | 68,739 |
Tax receivables | 132 | 568 |
Other current assets | 3,154 | 3,961 |
Cash and cash equivalents | 57,322 | 52,487 |
Total Current Assets | 250,975 | 239,668 |
Assets held for sale | - | 1,238 |
Total Assets | 419,279 | 411,866 |
In thousands of euros | ||
Paid-in capital | 63,181 | 61,636 |
Share premium | 20,664 | 12,219 |
Reserves and retained earnings | 119,990 | 106,339 |
Profit for the period | 15,996 | 13,632 |
Total Shareholders' Equity (Group share) | 219,831 | 193,826 |
Minority interests | 84 | 123 |
Total Shareholders' Equity | 219,915 | 193,949 |
Borrowings and financial debt | 81,217 | 92,148 |
Employee benefits | 3,206 | 3,184 |
Other provisions | 929 | 954 |
Deferred taxes | 3,216 | 3,901 |
Other non-current liabilities | 17,521 | 14,657 |
Total Non-Current Liabilities | 106,088 | 114,844 |
Borrowings and short-term bank debt (portion due in less than 1 year) | 39,597 | 40,013 |
Provisions (portion due in less than 1 year) | 268 | 1,042 |
Trade and other payables | 47,412 | 54,672 |
Other current liabilities | 5,998 | 7,346 |
Total Current Liabilities | 93,275 | 103,074 |
Total Liabilities | 419,279 | 411,866 |
PROFIT & LOSS
In thousands of euros | 30 September 2017 | 30 September 2016 | |
Turnover | 135,662 | 127,750 | |
Other operating income | 698 | 198 | |
Cost of goods purchased | (56,044) | (50,621) | |
External costs | (21,263) | (19,456) | |
Payroll costs | (26,004) | (25,750) | |
Tax | (1,317) | (1,125) | |
Depreciation and amortization | (5,381) | (6,314) | |
Provisions | (555) | (2,025) | |
Change in inventories of finished goods and work in progress | (424) | (183) | |
Other current income and expenses | (701) | (48) | |
Recurring Operating Profit | 24,672 | 22,427 | |
Profit/(loss) on disposal of consolidated equity interests | - | - | |
Other non-current operating income and expenses | (725) | (1,729) | |
Operating Profit | 23,948 | 20,697 | |
Income from cash and cash equivalents | 101 | 119 | |
Cost of gross financial debt | (777) | (823) | |
Cost of net financial debt | (676) | (704) | |
Other financial income and expenses | (594) | 207 | |
Profit before tax | 22,678 | 20,200 | |
Income tax | (6,683) | (6,464) | |
Profit after tax | 15,995 | 13,736 | |
Net profit of companies accounted for by the equity method | 26 | (83) | |
Net profit | 16,021 | 13,653 | |
Minority interests | 25 | 21 | |
Group net profit | 15,996 | 13,632 | |
CASH FLOW STATEMENT
In thousands of euros | 30 September 2017 | 30 September 2016 |
CASH FLOW LINKED TO OPERATIONS | ||
Consolidated net profit | 16,021 | 13,653 |
Elimination of the share in profit of companies accounted for by the equity method | (26) | 83 |
Elimination of amortization and provisions | 4,389 | 6,538 |
Elimination of profit from disposals and gains and losses on dilution | (9) | (1) |
Dividends received from companies accounted for by the equity method | 40 | - |
Expenses and income linked to share-based payments | 628 | 938 |
Other income and expenses with no impact on cash flow | 820 | 1,185 |
= Cash flow after cost of net financial debt and tax | 21,863 | 22,396 |
Tax expense | 6,683 | 6,464 |
Cost of net financial debt | 676 | 704 |
= Cash flow before cost of net financial debt and taxes | 29,222 | 29,564 |
Tax paid | (4,014) | (908) |
Change in WCR linked to operations | (22,064) | (25,226) |
= Net cash flow linked to operations | 3,144 | 3,430 |
CASH FLOW LINKED TO INVESTMENTS | ||
Impact of changes in scope | - | (97) |
Acquisitions of property, plant and equipment and intangible assets | (5,974) | (6,788) |
Acquisitions of financial assets | (4) | - |
Disposals of property, plant and equipment and intangible assets | 44 | 2 |
Disposals of financial assets | - | - |
Change in loans and advances | 36 | (4) |
= Net cash flow linked to investments | (5,898) | (6,887) |
CASH FLOW LINKED TO FINANCING ACTIVITIES | ||
Transactions with minority interests | ||
Capital increase | - | - |
Acquisitions and disposals of own shares | (3,385) | 9 |
Loans issued | 7,661 | 8,627 |
Repayment of loans | (16,409) | (22,138) |
Net financial interest paid | (656) | (704) |
Parent company dividends | (6,480) | (530) |
Minority interest dividends | (90) | - |
= Net cash flow linked to financing activities | (19,359) | (14,736) |
Impact of changes in foreign exchange rates | (654) | 103 |
Change in cash | (22,767) | (18,090) |
Opening cash | 65,289 | 50,592 |
Closing cash | 42,522 | 32,502 |
News releases under ongoing reporting obligations:
- News release on accounts, results
Full and original press release in PDF:
https://www.actusnews.com/documents_communiques/ACTUS-0-51298-cp-oeneo-rs-2017-2018-vf-gb.pdf
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