DGAP-News: Berentzen-Gruppe AG

P R E S S R E L E A S E No. 15/2017

Berentzen-Gruppe Aktiengesellschaft publishes Half-yearly Financial Report
Group continues its growth trajectory again in the first half of 2017

- Consolidated revenues rise by 4.0% to EUR 85.3 million

- Consolidated operating profit increases by 3.1% to EUR 4.1 million

- Spirits business performs well in a difficult market environment

- Non-alcoholic Beverages and Fresh Juice Systems see further increases in revenues but also face challenges

- Annual forecast for the 2017 financial year generally reaffirmed

Haselünne, August 14, 2017 - Berentzen-Gruppe Aktiengesellschaft, which is traded on the regulated market (General Standard) of the Frankfurt Stock Exchange (ISIN: DE0005201602), today published its group half-yearly financial report. In the first half of the 2017 financial year, the group saw consolidated revenues grow to EUR 85.3 million (H1 2016; EUR 82.0 million). Consolidated operating profit before interest and tax (consolidated EBIT) rose over the reporting period to EUR 4.1 million (H1 2016: EUR 4.0 million), the consolidated operating profit before interest, tax, amortisation and depreciation (consolidated EBITDA) rose to EUR 7.6 million (H1 2016: EUR 7.2 million).

"The Berentzen Group has chosen the right fundamental strategic orientation and we are returning sound results for the first half of the year," explained Oliver Schwegmann, a member of the Berentzen Group's Executive Board. He continued that the group had focused on continuity over the first half of 2017 and had achieved moderate but satisfactory growth. "There are, nevertheless, challenges to be faced in some areas and there is scope for further optimisation in order to safeguard long-term commercial success," continued Schwegmann.

Dynamics of the individual segments

Despite a difficult market environment with sales volumes falling in Germany overall, the Berentzen Group succeeded in generating revenues of EUR 49.2 million in the Spirits segment, stable at the previous year's level. The Berentzen and Puschkin umbrella brands even bucked the market trend with a further rise in sales volumes. "We are particularly pleased that the Berentzen brand has been able to further extend its leadership of the market for fruit spirits in Germany, with a market share of 21.6% - the highest figure for many years," said Schwegmann. The international business with spirits also saw ongoing growth.

In the business with non-alcoholic beverages, the Berentzen Group enjoyed significant rises in revenue (up 13.2%) and sales volume (up 9.1%) in the first half of the 2017 financial year. "Our Mio Mio brand in particular continues to develop excellently," Schwegmann was pleased to say, as this area had achieved sales growth in excess of 67% on the equivalent period last year. The contribution of the Non-alcoholic Beverages segment to the earnings of the consolidated group was nevertheless smaller than anticipated. This was due to higher expenses in production and logistics as well as additional amortisation and depreciation as a consequence of a higher need for capital expenditure, that negatively impacted earnings.

The Fresh Juice Systems segment achieved revenue growth of 2.8% in the first six months of the 2017 financial year. Bottlenecks in the supply of oranges caused by poor harvests due to bad weather and a difference of opinions on the further strategic development of the business relationship with the US distribution partner, as a consequence of which the anticipated level of machine sales was not reached, were the main reasons why the group was not able to match the high growth rates seen in previous years. As a consequence of these developments, a downward correction was made to this segment's earnings outlook for the 2017 financial year. "Furthermore, we will have to massively accelerate the innovation cycles in the development of new equipment, implement a large number of logistics measures for improved supplies of quality oranges and further intensify and expand sales and marketing activities," Schwegmann added.

Outlook for the remainder of the financial year

The forecasts made in the 2016 Annual Report regarding revenues (EUR 170.4 million to EUR 179.2 million), consolidated EBIT (EUR 11.2 million to EUR 12.4 million) and consolidated EBITDA (EUR 17.8 million to EUR 19.7 million) are reaffirmed for the 2017 financial year. "However, the challenges outlined above make it clear that some efforts are still required in order to achieve this in the second half of 2017", said Schwegmann in conclusion.

About the Berentzen Group:
The Berentzen Group is a broad-based beverage company operating in the following three segments: Spirits, Non-alcoholic Beverages, and Fresh Juice Systems. The Berentzen Group is one of the oldest producers of spirits in Germany with a corporate history going back over 250 years. Today, it has a presence in more than 60 countries around the world with well-known brands like Berentzen and Puschkin and attractively priced private label products. In its Non-alcoholic Beverages segment, the corporate group produces mineral waters, carbonated and non-carbonated soft drinks under its own brands and also boasts more than 50 years of experience in the franchise business for soft drinks, currently acting as franchisee for the Sinalco brand. In addition, the Berentzen Group markets innovative fresh juice systems under the Citrocasa brand in its third segment, thus serving the fast-growing market for modern, health-oriented drinks. The Berentzen-Gruppe Aktiengesellschaft share (ISIN DE0005201602) is listed on the regulated market (General Standard) of the Frankfurt Stock Exchange.

For more information
www.berentzen-gruppe.de
www.berentzen.de

Berentzen-Gruppe Aktiengesellschaft
Thorsten Schmitt
Press and PR
Tel. +49 (0) 5961 502 215
pr@berentzen.de