|Turnover (€M)||2016-2017||2017-2018||Change||Change at constant exchange rates|
Oeneo posted turnover of €70.7 million for the second quarter of the financial year, up 9.1% (9.5% at constant exchange rates). Sales were buoyant in both of the Group's divisions, particularly in Closures with organic growth of 15%, still propelled by the worldwide success of the Diam range. The Group achieved modest growth in Winemaking against a high basis of comparison and less favorable weather conditions in Europe.
After six months of activity, turnover at end-September came in at €135.7 million, up by a solid 6.2% (6.3% at constant exchange rates). The Group is in line with its strategic roadmap with very high sales in Closures and solid sales in Winemaking, with the latter repeating last year's robust performance in the first half.
These levels of activity should enable the Group to confirm the increase in its margins over the first half year.
Review by Division
CLOSURES: SHARP INCREASE IN DIAM SALES
Very strong momentum in the second quarter of 2017-2018 confirmed the Diam range's expanding foothold and growing market share amongst winegrowers around the world. Diam's turnover surged more than 20% over the quarter, reflecting growth of over 17% since the beginning of the year.
This performance reflects a sharp increase in volumes in practically all countries for both the entry level Diam 1 range and the Diam 10 and Diam 30 premium ranges. Closures reported double-digit growth in all the main wine-growing countries (France, Spain, Italy, United States and Argentina), affirming its global success.
Including the Group's other technological closures and Piedade's sales volumes (stable in the second quarter and increasingly concentrated on the Pietec range), the Group sold over 1.2 billion closures over the half-year period and reached a new record. The Group will continue to capitalize on the ongoing strong success of the Diam range, and sales should remain upbeat in the coming months, despite smaller wine harvests in Europe.
WINEMAKING: SUSTAINED PERFORMANCE
The division reported stable sales during the half-year period, with the second quarter making up for the slight drop in first quarter and the Group repeating last year's record historical performance.
This performance is particularly meaningful as it stems from strong and thriving growth for Oeneo's strategic activities: oak barrels, oak products and technological solutions. These activities have offset the decline of €1.2 million in non-strategic activities, such as sale of staves or manufactured wood products to third parties.
By geographic area, Europe continued to lead sales, due to the early harvesting primarily in Italy, Portugal and Austria. In France, growth in sales in Burgundy MADE up for the weather impacts (spring frost) in regions such as Bordeaux and Cognac. The "core business" activity in the Americas region expanded during the period and the outlook remains positive for the third quarter.
With its global operations and premium position, the division managed to mitigate the effects of extreme weather events, such as an early frost and summer drought that struck Europe particularly hard this year and weighed on market momentum. The Winemaking division is targeting a second half of year that is in line with the first, which would mean an excellent performance given the particular circumstances.
Oeneo Group will publish its results for the first half of 2017-2018 on December 12, 2017 after the market closes.
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
Chief Financial Officer
+33 (0)1 44 13 44 81
|Guillaume Le Floch
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