Growth over 9 months in 2016-2017: +19%
Ongoing increase in new market share
|Turnover (€m)||2015-2016||2016-2017||Change||Change at constant scope and exchange rates|
Oeneo Group posted third-quarter turnover of €55.0 million in the three months from October to December, up by close to 2% on the previous financial year.
The Closures division performed well over the period, underpinned by persistently robust growth for its Diam range albeit dampened by the decision to terminate low-margin ranges at Piedade in line with the Group's strategy for value creation.
Winemaking also continued to hold up extremely well, with sales that remained high despite a less favorable backdrop (global wine production estimated at -5% in 2016) reflecting new wins in market share.
After nine months of activity, turnover was still up by a strong 19.1% (+6.3% at constant scope and exchange rates), and Oeneo Group is looking forward to a more dynamic fourth quarter, thanks notably to a brighter outlook for the southern hemisphere.
Review by Division
CLOSURES: Robust sales for Diam
Oeneo's Closures division continued to perform very well in the third quarter of financial year 2016-2017, with a double-digit increase in sales and a higher average price over the period taking growth to more than 11% over 9 months. Activity was buoyant across Europe, and primarily in Italy, Greece and Spain. Sales were also realized with Piedade clients, thus validating the first commercial synergies within the division.
Closures also confirmed its strategy to focus Piedade's activity on Pietec technological closures and premium natural cork-based closures, resulting in a drop in volumes in the short term which is partly offset by an increase in the average price. The restructuring of Piedade is still ongoing in order to increase its production capacity on the ranges that remain in place.
The Group will continue to capitalize on the persistently strong success of the Diam range, and sales should remain upbeat in the coming months, benefiting from the new innovation to be marketed in the coming weeks.
WINEMAKING: solid growth despite an unfavorable backdrop
Oeneo's Winemaking division posted a virtually stable performance for the third quarter of 2016-2017 despite a persistently high basis for comparison. Activity in France remained very strong and got off to a good start in South America, enabling the division to offset poor conditions in Europe (weather) and a wait-and-see approach amongst purchasers in the United States after strong investment in previous years.
The third quarter was also marked by a net increase in sales for oak products which confirms their potential for growth in the years ahead.
Turnover at 9 months amounted to €68.4 million, which is an increase of 3.3% at constant exchange rates. The fact that, with the exception of Europe (excluding France), activity was up in all geographic regions reflects the Group's capacity to seize new growth opportunities around the world thanks to a unique offer and permanent innovation.
The fourth quarter should bring moderate growth in line with Oeneo's strategic roadmap which will further strengthen the Group's market share.
Oeneo Group will publish its yearly turnover for 2016-2017 on 4 May 2017.
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
Philippe Doray 01 44 13 44 39
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