Oeneo Group enjoyed a very good start to 2021-2022, posting turnover of €77.1 million, up 33.2%. Boosted by a favorable comparison base (business contracted 15.2% in Q1 2020-2021 due to the health-crisis restrictions), this was the Group's best ever first-quarter performance. Growth was up 12.9% on Q1 2019-2020 (€68.3 million), which is the pre-pandemic benchmark.

Within a more favorable environment, Closures performed particularly well. The division's turnover rose nearly 40% to €59.4 million thanks to further market share gains in all geographic regions. Winemaking enjoyed solid business levels in the first quarter (+15%), but still fell short of pre-pandemic levels in a market that remains shaped by a cautious economic outlook among clients.

This very robust quarter confirms the Group's capacity to resume its growth trajectory, thanks to premium positions in Closures and Winemaking and strong positions in international markets. Due to the higher comparison base, the Group is aiming for modest growth in the coming quarters, especially as harvest volumes in the northern hemisphere will be affected by spring frosts in Europe and wildfires in the United States. 

Review by division

CLOSURES: VERY STRONG GROWTH

The division posted a record first quarter turnover of €59.4 million, up 39.9% versus Q1 2020-2021 and up 19.9% versus Q1 2019-2020. The business benefited from the reopening of the café, hotel and restaurant (CHR) business. Overall performance is still being driven by Diam Closure sales, where entry-level sales volumes rebounded sharply and the high-end segment enjoyed continued strong demand, notably for the bio-sourced cork, Origine by Diam.

By region, business was very strong globally, thanks to new client acquisitions, a surge in orders from new clients, and repeat orders from long-standing clients.

Sales of other technological closure brands were also solid, allowing the Group to exceed 700 million cork closures for the first time in the April-June period.

This strong start to the year confirms the target of turnover in excess of €200 million in 2021-2022.

WINEMAKING: a gradual BUSINESS upturn

Winemaking generated first-quarter turnover of €17.7 million, up 15% on first-quarter 2020-2021, but still 5.5% down on the same period in 2019-2020.

Market conditions are gradually improving, but are contingent on the predominant wait-and-see customer approach. Some customers have postponed their investments, particularly in California which has yet to recover from the 2020 wildfires.

In Europe, business has been improving with a good sales performance, that allowed the Group to capture a share of the gradual market recovery, although harvest volumes are expected to fall this year due to spring frosts. The division notably reported renewed growth in large containers in the first quarter.

The division expects 2021-2022 to be a transition year, pending a stronger upturn in investments, and continues to focus on optimizing productivity and profitability.

Oeneo Group will publish its turnover for the first half of 2021-2022 on 8 November 2021.

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, Boisé, Millet, Fine Northern Oak and Galileo, and developing 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.

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