Oeneo's consolidated statements for financial year 2022-2023 ended March 31, 2023 were approved by its Board of Directors on June 14, 2023. The consolidated financial statements have been audited in full. The auditors' report will be published once the procedures required for the publication of the annual financial report have been completed.

Oeneo delivered a solid performance in 2022-2023, posting record turnover and results despite a complex macroeconomic environment. This performance demonstrates the relevance of the Group's premium strategy and global footprint.

Turnover for 2022-2023 amounted to €348.2 million, up 6.8% year on year. Both of the Group's divisions achieved their highest ever turnover, with the Winemaking division passing the symbolic €100 million mark for the first time.

The Group posted recurring operating profit of €54.6 million, up 1.2%. Changes in the product mix and a controlled pricing policy, reflecting the premium strategy of the Group's brands, helped to mitigate the effects of inflation on raw materials and the rise in certain production costs. This performance is all the more commendable since recurring operating profit includes a €2.7 million expense relating to performance shares. The Group's recurring operating margin came in at 15.7% of turnover, in line with the Group's forecast.

Operating profit rose to €52.2 million, up 6.1% due to a €2.4 million decrease in non-recurring expenses

Financial profit remained stable at €0.9 million, with the increase in cost of gross debt offset by positive currency effects (particularly from the euro/dollar). The €1.0 million fall in tax to €10.2 million, linked to tax loss carryforwards in Europe, allowed net profit, Group share, to climb 10.8% to €41.2 million.

Shareholders' equity amounted to €343.0 million, versus €338.6 million at March 31, 2022. Cash flow from operations remained high at €41.0 million, despite a significant €23.0 million increase in WCR, due in particular to the effects of inflation on the value of inventories. It more than covered net investments for the year, which totaled €19.5 million, primarily directed towards improving the production facilities of both divisions.

Free cash flow therefore rose slightly to €21.5 million, part of which was used to repay bank debt (€12.3 million) and pay interest (€1.4 million). The Group paid shareholders a dividend of €38.9 million last year, half of which as an exceptional dividend.

Net debt (including €4.9 million in debt linked to leases as a result of the application of IFRS 16 “Leases”) amounted to €29.8 million at March 31, 2023, limiting the net gearing ratio to 8.7%. Available cash stood at €30.3 million.

In view of the Group's very healthy financial situation and structural cash flow generation, the Board of Directors will recommend the payment of a cash dividend of €0.70 per share (€0.35 ordinary and €0.35 exceptional) in respect of 2022-2023, at the next Annual General Meeting.

In 2023-2024, faced with a persistently difficult and uncertain environment, the Oeneo Group is committed to consolidating its market share by prioritizing growth in high-end segments, and, at the same time, continuing to adjust its pricing. The Group is also pressing ahead with its operational efficiency action plans aimed at maintaining its recurring operating margin.

2022-2023 performance review by division

CLOSURES: Recurring operating margin of 18.5%

The Division achieved another year of growth with turnover of €244.5 million, up 5.1% at constant exchange rates. This increase was mainly driven by the shift in the product mix toward high-end ranges, and by price increases introduced during the year. The Group sold more than 2.54 billion cork-based closures in 2022-2023, and is now present in more than 85 countries. 

These price adjustments and efficient cost management have mitigated the strong inflationary effect on raw materials, particularly cork, the price of which is at historically high levels. Recurring operating margin for the year remained at a high 18.5%, slightly down from the prior-year level of 19.9%.

The Division expects a slowdown in sales in the most competitive entry-level segments in 2023-2024 and will therefore pursue its strategy of focusing on high-end closures, which are less sensitive to the economic context and customers' wait-and-see attitude. The Group will continue to adapt its pricing structure to safeguard its gross margin and recurring operating margin.

WINEMAKING: Recurring operating margin stable at 11.6%

The Winemaking division achieved a strong year of growth with turnover of €103.7 million, up 8.7% at constant exchange rates. This growth was driven in particular by the upturn in business in the United States, and by ongoing robust activity in Europe.

Recurring operating margin came in at 11.6%, remaining stable on the previous year. The increase in volumes and price adjustments offset the sharp rise in procurement costs, particularly for wood.

In 2023-2024, the Division intends to consolidate its record level of business and continue to implement its operational improvement levers to optimize profitability in this demanding context.

Oeneo Group will publish its turnover for the first quarter of 2023-2024 on July 24, 2023, after trading.

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, involving the manufacture and sale of cork closures, including high value?added technological closures through its Diam and Pietec ranges.
• Winemaking, providing high-end solutions in winemaking and spirits for leading market players through its cooperage brands Seguin Moreau, Millet, Galileo and Boisé, and developing innovative solutions for the wine industry with Vivelys (R&D, consulting, and systems).

We are passionate about the art and culture of wine, conscious of the urgent environmental and societal challenges facing our world, and firmly believe that enlightened innovation must serve the common good. We want to use our strengths and expertise to serve the wine industry's sustainable development as we innovate to uphold the great history of wine.

WE CARE ABOUT YOUR WINE

INFORMATION AND PRESS RELATIONS

Appendices

Balance sheet

Profit and loss statement

Cash Flow statement