2017

• Slight downward adjustment made to expected consolidated EBIT and consolidated EBITDA, revenue forecast unchanged
• Non-alcoholic beverages: Gross profit sees positive developments but below expectations
• Fresh juice systems: Pressure on gross profit in the business with oranges due to market shortage; target for machine sales unachievable
• Ongoing positive developments in the spirits business and with Mio Mio

Haselünne, September 14, 2017 – Berentzen-Gruppe Aktiengesellschaft, which is traded on the regulated market (General Standard) of the Frankfurt Stock Exchange (ISIN: DE0005201602), has updated its earnings figures forecast for 2017. This development is mainly the result of an anticipated lower level of gross profit than originally expected in the Non-alcoholic Beverages and Fresh Juice Systems segments
 
For the 2017 financial year, the Berentzen Group is now forecasting a consolidated operating profit before interest and tax (consolidated EBIT) of between EUR 9.1 million and EUR 10.1 million (previously between EUR 11.2 million and EUR 12.4 million) and a consolidated operating profit before amortisation and depreciation (consolidated EBITDA) of between EUR 16.0 million and EUR 17.7 million (previously between EUR 17.8 million and EUR 19.7 million). In contrast, the forecast relating to consolidated revenues remains unchanged (between EUR 170.4 million and EUR 179.2 million).
 
“The Berentzen Group will, once again in 2017, be characterised by sound profitability – but not at the expected level, however,” says Executive Board member, Oliver Schwegmann. The adjustments made stem from a number of separate influencing factors, specific in each case, arising in the two segments, Fresh Juice Systems and Non-alcoholic Beverages.

The Group’s half-yearly financial report published in August already contained a downward correction to the segment earnings for Fresh Juice Systems. “Unfortunately, there has been no end to the poor orange harvests. In South Africa, crop losses of up to 50 percent are anticipated,” Schwegmann continues. This market shortage was leading to considerable rises in purchasing prices and expenses relating to quality assurance measures, meaning that profit margins were contracting significantly. “Our infrastructure was not sufficiently prepared for such poor harvests due to bad weather. We will now consistently work towards being better placed to deal with such situations in future,” Schwegmann explains. In addition, it was not possible to achieve the growth rate originally assumed for the sales of fruit juice presses. In addition to the difficulties in the US which were already apparent, the markets in the main sales markets of Germany and Austria will remain below the very ambitious expectations. In combination, all these factors have led to a situation where segment earnings towards the lower end of the range forecast in the half-yearly financial report can be expected.

While the gross profit in the Non-alcoholic Beverages segment is seeing an improvement in gross profit in comparison to the previous year, developments are weaker than forecast, nevertheless. The summer months that turned out to be weak on account of the weather were one of the main reasons. “The currently disappointing course of business leads us to believe that the rises in gross profit that we expected for the 2017 financial year can no longer be achieved,” Schwegmann explains. In addition, the franchise business with the Sinalco brand was not developing as intended. In particular, lucrative sales of bulk containers for the hospitality trade were trailing far behind expectations.

The international business with branded spirits was also unlikely to meet original targets. This was primarily due to business in Turkey. In contrast, the domestic spirits business and the Mio Mio range of non-alcoholic beverages were showing positive developments. “In the area of spirits, we score points not only with our Berentzen and Puschkin umbrella brands but also with our branded dealer and private-label brands. And the Mio Mio figures are continuing to skyrocket,” Schwegmann explains. It is now a question of proactively seeking a new course and taking forward-looking action to meet challenges as they arise. “For example, we intend to significantly increase our supply chain efficiency, streamline our product portfolio and purge any low-margin products alongside restructuring the marketing and sales activities of our Fresh Juice Systems and Non-alcoholic Beverages segments,” says Schwegmann, as he presents the first steps towards a new overall concept that is currently being finalised. “We are convinced of the positive effects these measures will bring. This enables us to look optimistically to the future,” concludes Schwegmann.