DGAP-News: Berentzen-Gruppe Aktiengesellschaft publishes its half-yearly financial report - Substantial increase in profitability in the first half of 2018

P R E S S R E L E A S E No. 14/2018

Berentzen-Gruppe Aktiengesellschaft publishes its half-yearly financial report
Substantial increase in profitability in the first half of 2018

- Consolidated earnings before interest and taxes rise by 10.1% to EUR 4.6 million

- Consolidated revenues decline slightly to EUR 78.4 million

- Earnings forecast for the full year 2018 reaffirmed

Haselünne, August 14, 2018 - Berentzen-Gruppe Aktiengesellschaft (ISIN: DE0005201602), which is traded on the regulated market (General Standard) of the Frankfurt Stock Exchange, published its group half-yearly financial report on today's date. The Berentzen Group generated consolidated revenues of EUR 78.4 million in the first half of the 2018 financial year (H1 2017: EUR 80.0 million). Consolidated earnings before interest and taxes (consolidated EBIT) rose by 10.1% to EUR 4.6 million (H1 2017: EUR 4.1 million) and consolidated earnings before interest, taxes, depreciation and amortization rose to EUR 8.2 million (H1 2017: EUR 7.6 million). The EBIT margin rose from 5.2% to 5.8%. Thus, the Berentzen Group generated a consolidated profit of EUR 2.7 million (H1 2017: EUR 1.2 million).

"The substantial gains in EBIT and EBITDA are proof of our increased profitability", explained Oliver Schwegmann of the Berentzen-Gruppe Aktiengesellschaft Executive Board. He said that the higher gross profit margin was the main reason for the increased earnings. "However, we are also very proud of the fact that we more than doubled our consolidated profit, thanks to lower interest expenses", Schwegmann added.

He went on to say that the company originally had higher expectations for consolidated revenues in the first half of 2018. "Compared to the first quarter, however, we were able to significantly reduce the revenue gap, thanks to the positive development of revenues in the second quarter", Schwegmann said. Revenues for the first three months of this year were 6,2 % below the prior-period figure, whereas the revenue change for the first six months was only -2.1%. Consolidated revenues in the second quarter of this year were higher than in the second quarter of 2017, he said.

The persistent challenges in the Fresh Juice Systems segment were one of the chief reasons for the revenue decline, Schwegmann said. As reported in the last quarterly report, unit sales of fruit presses in the important French market were markedly weak. "We must recognize that we placed too much of an operational focus on sales in the past years and were not ambitious enough in our efforts to develop new, innovative equipment. However, precisely that is essential to generating sustainably high sales especially in our established markets. In the Fresh Juice Systems segment, we must focus even more on the development, production and distribution of innovative equipment in the future so as to create the right stimulus for growth", Schwegmann said.

In the Non-alcoholic Beverages segment, the Group's own brands were very successful. This was especially true of Mio Mio, which saw a further, almost 36 percent rise in sales volume, Schwegmann said. He also pointed out that the mineral water business exhibited a positive development in the first half of 2018. "This shows us that our focus on branded products is the right strategy in the Non-alcoholic Beverages segment," Schwegmann said, adding that "Revenues increased over the already strong first half of 2017." By contrast, revenues in the Spirits segment were slightly lower, although the Group's core brands exhibited a positive development on the whole. "The sales volume of our Puschkin brand spirits was up 15 percent, despite the highly competitive environment", Schwegmann said.

Outlook for the remainder of the 2018 financial year

"We are still convinced that we will reach our full-year targets for EBIT und EBITDA in 2018", Schwegmann said. However, he also said that consolidated revenues will only reach the lower end of the previously expected range, at most. "Mainly due to the revenue decline in the first quarter and despite the positive momentum in the second quarter, it will no longer be possible to reach the upper or middle range of our revenue forecast", Schwegmann said. Nonetheless, the company expects that the diverse communication measures that have already been initiated and performed will have a positive effect on revenues in the second half of the year. Therefore, he said, the company now expects consolidated revenues to come out within a range of EUR 162.8 million to EUR 171.2 million (2017: EUR 160.4 million). "For the full year 2018, we therefore continue to expect higher revenues on the whole compared to 2017", Schwegmann concluded.

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
Corporate Communications
Tel. +49 (0) 5961 502 215
pr@berentzen.de