In a challenging wine and spirits market, Oeneo Group returned to growth in the second quarter (up 1.5%), continuing the upward trend observed for several quarters now. On the back of this performance, first-half turnover was very similar to that achieved in the same prior-year period.

The Group was driven in particular by the strong momentum of the Closures division, which was buoyed by the ongoing robust growth of Diam range sales over the second quarter. The Winemaking division proved more resilient throughout the second quarter despite a high basis of comparison (earlier deliveries in the US market in 2023), offsetting the decline recorded in the first-half.

Due to productivity efforts in each division and an improved Closures division sales mix, the Group's operating profitability is set to increase compared with first-half 2023-2024 for a roughly identical level of turnover. The Group's recurring operating margin is expected to come in at around 15%, compared with 13.1% for the same prior-year period.

Visibility for the second half of the year remains uncertain, primarily due to the low global harvest volumes anticipated this year and the continued decline in global wine consumption. Against this unprecedented backdrop, the Group remains cautious, reaffirming its high-end positioning and innovation strategy in order to consolidate and strengthen its market share.

BUSINESS REVIEW BY DIVISION

CLOSURES: strong momentum confirmed

The first-quarter trend continued throughout the second quarter, with growth coming in at 7.9%. The division recorded turnover of €107.9 million for the first half of the year, up 7.3% over first-half 2023-2024.

This performance was driven by double-digit growth in sales of the Diam range over the period with a particularly impressive performance in the high-end segment, resulting from a highly competitive offer compared with traditional cork closures, which are in decline.

Sales were up in all geographical regions except Asia, where the market is currently less buoyant. Substantial orders were placed in France and in Spain, and to a lesser extent in Italy and the United States. Trade volumes rebounded in Latin America, particularly in Argentina.

The division expects to confirm its strong momentum over the coming quarters and to consolidate its operating performance in a persistently demanding environment.

WINEMAKING: improved resilience over the second quarter

The division's improved performance over the second quarter contained the business downturn in the first-half as a whole to 16.0%, with first-half turnover coming in at €45.1 million. The division continues to operate against a complex economic backdrop, marked by a slowdown in winegrower investments in a very sluggish wine market (slowdown in sales and disappointing prospects for the 2024 harvest due to unfavorable weather conditions over the year).

The division continued to hold firm in France with a stable performance (excluding wood trading) and strong momentum in large containers partially offsetting the decline in barrels and wooden winemaking solutions. Europe was impacted as a whole, with lower order volumes across all countries. Despite a high basis of comparison due to early deliveries in 2023, the decline in the United States was less pronounced than in the first quarter thanks to the resumption of direct sales of Boisé products.

However, the division remains cautious given the current lack of visibility, due in particular to poor harvests in all geographical regions. It will continue its efforts to boost productivity in order to optimize its recurring operating margin during this transitional year.

OENEO GROUP WILL PUBLISH ITS 2024-2025 FIRST-HALF RESULTS ON DECEMBER 4, 2024, AFTER THE CLOSE OF 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 under the Diam, Mytik Diam and Setop brands.
• Winemaking, providing high-end solutions in winemaking and spirits for leading market players through its cooperage brands Seguin Moreau, Boisé, Millet, Fine Northern Oak and Galileo, and developing innovative solutions for the wine industry with Vivelys (R&D, consulting, 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

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