|TURNOVER (€M)||2018-2019||2017-2018||Change||Change at constant scope and exchange rates|
Turnover restated for Closures activities in the process of being sold in accordance with IFRS 5. These activities represented turnover of €20.6 million in the 2017-2018 financial year and €12.8 million in the 2018-2019 financial year. The application of IFRS 15 “Revenue from Contracts with Customers” did not have any material impact.
Oeneo closed its 2018-2019 financial year with a dynamic fourth quarter, in line with its expectations. Turnover for the period rose 9.3% to €72.5 million (up 7.0% at constant scope and exchange rates). These results were driven by ongoing robust activity in Closures and a strong sales trend in Winemaking since the beginning of the second half of the year.
The solid quarterly performance lifted annual turnover by 7.9% to €268.2 million (up 5.5% at constant scope and exchange rates). Thanks to this growth of activities as well as cost optimization measures put in place to mitigate the impact of the cyclical increase in cork prices in Closures, the Group consolidates the improvement in its operating profitability in the second half versus the first six months of the year. The recurring operating margin is expected to come in at approximately 15% for the year as a whole.
The Group has made a confident start to 2019-2020 with strong growth potential in both divisions. The ongoing measures should mean the progressive recovery of Oeneo's recurring operating margin.
Review by Division
CLOSURES: another year of growth
Closures division delivered another good year of growth with turnover increasing 7.8%, bolstered by rising volumes and a price effect resulting from (i) higher prices to pass on part of the increase in cork costs to customers and (ii) a favorable product mix.
Sales of Diam closures continued to drive growth in the division, with a near 9% increase over the year despite the volume effect of the focus on mid- and high-end ranges. These market share gains were achieved despite a high basis for comparison (growth of 20% in the 2017-2018 financial year) and the impact on the market of weak 2017 harvests, particularly in Europe. The Group has consolidated its global presence with consistent growth across all geographic regions.
Turnover for other technological closures is also trending upwards. Across all ranges, the Group sold close to 2.3 billion cork-based closures over the year.
In the second half, the division continued to roll out its “Opticork” plan, which aims to optimize costs. These short- and medium-term structural measures will improve operating profitability from the second half despite the still very high cost of cork and gradually restore the Group's margins to historic levels.
WINEMAKING: DYNAMIC YEAR-END
Winemaking division successfully made up for the lag incurred in the first half of the year with an 18.5% increase in turnover in the fourth quarter, close to 10% on an organic basis. The division ended the year with global growth of 7.9%, of which 1.0% at constant scope and exchange rates. Tonnellerie Millet and Etablissements Cenci, which were acquired early in the year, contributed €6.3 million to the division's turnover and continue to be successfully integrated into the Group.
Business remained robust across all geographic regions, with strong growth in Europe compared to the previous year, which was marked by a poor harvest in 2017. This made up for weaker market conditions in the United States. The growth potential of wooden winemaking solutions was confirmed and the Group continued to expand its customer portfolio, reaping the benefits of its market-exclusive, high value-added offering.
Positive momentum in the second half had a favorable impact on recurring operating profit, which continued to lag, however, due to delayed orders in the first half and fluctuating raw materials costs having a short-term impact on the contributions of recently acquired businesses.
Oeneo Group will publish its 2018-2019 full-year results on June 13, 2019
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:
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.
INFORMATION AND PRESS RELATIONS
Chief Administrative and
+33 (0)5 45 82 99 93
|Guillaume Le Floch
Analysts – Investors
+33 (0)1 53 67 36 70
Press – Media
+33 (0)1 53 67 36 90
French limited company with share capital of €64,103,519
Head office: 16 Quai Louis XVIII – 33000 Bordeaux
Tel. +33 (0)5 45 82 72 61