2017

• Consolidated revenues rises to EUR 126.4 million
• At EUR 5.0 million, consolidated operating result (EBIT) clearly positive, but below previous year 
• Corporate group bond of EUR 50.0 million repaid
• Adjusted earnings forecast for the 2017 financial year confirmed
• Structural changes to the Group have begun

Haselünne, October 27, 2017 – Berentzen-Gruppe Aktiengesellschaft, which is listed on the regulated market (General Standard) of the Frankfurt Stock Exchange (ISIN: DE0005201602) today presented its interim report for the third quarter of 2017. In the first nine months of this year, the corporate group saw consolidated revenues grow to EUR 126.4 million (EUR 124.7 million). Consolidated operating profit before interest and tax (consolidated EBIT) stood at EUR 5.0 million (EUR 7.0 million) and consolidated operating profit before interest, tax, amortisation and depreciation (consolidated EBITDA) stood at EUR 10.4 million (EUR 12.0 million) over the period from January to September 2017.

“The challenges we faced particularly in the summer months are now being reflected in the earnings figures, as anticipated,” explained Oliver Schwegmann, a member of the Berentzen Group’s Executive Board. The corporate group had made a downward adjustment to its earnings forecast for 2017 in September, referring in this context to massive bottlenecks in the supply of oranges, the weather prevailing in Northern Germany, our main sales area, this summer that negatively impacted the Non-alcoholic Beverages segment, the comparatively low volume of revenues generated by the Sinalco franchise brand and to detrimental effects stemming from the product and customer mix and the type of container used in this segment.

The Non-alcoholic Beverages segment nevertheless returned revenue growth of 6.9% over the period from January to September 2017 in comparison to the equivalent period of 2016. This development was, however, almost exclusively due to the Mio Mio brand, which repeatedly matched the high growth rates seen to date. “Our Mio Mio brand has developed fantastically once again but the remainder of the Non-alcoholic Beverages segment’s product portfolio remained below its own revenue expectations,” explained Schwegmann
 
Revenues in the Fresh Juice Systems segment fell to 2.6% below the previous-year period in the first nine months of this year. “In the business with oranges this year, we not only had to struggle with the lack of availability of the fruit itself but, as a consequence, also with rising purchase prices and quality issues,” explained Schwegmann. “With a view to stable and long-term customer relationships, we consequently made the decision to significantly increase expenditure on safeguarding supplies and quality assurance. In such a year, this is directly reflected in the earnings figures, of course.”

The Spirits segment remained largely stable with only a slight fall in revenues of 0.5% in comparison to the previous year. “In the Spirits segment we do have a slightly lower level of revenue. But this is attributable to the business with our branded dealer and private-label products. In contrast, we have achieved growth with our brand spirits even in a highly competitive environment,” said Schwegmann.

The reporting period also saw the repayment of the corporate bond of EUR 50.0 million. As already communicated by the Berentzen Group, this transaction took place as planned on 18 October 2017. Ralf Brühöfner, whose functions on the Executive Board include the Finance portfolio, explains as follows: “The repayment means that our annual financing costs will be roughly halved as of 2018. We are pleased to have brought this chapter of our corporate financing to a successful conclusion.”

Outlook for future development

“After the strong performance by branded spirits, we are convinced that the traditionally strong end-of-year business that is vital for the consolidated net profit in the Spirits segment will take a successful course. Furthermore, we are confident that the revenue and earnings situation in the business with oranges will normalise somewhat in the last quarter”, continued Schwegmann. In light of this, the earnings forecast for the 2017 financial year as adjusted on 14 September 2017 remains in place, according to which the corporate group expects consolidated revenues of between EUR 170.4 million and EUR 179.2 million, a consolidated operating result of between EUR 9.1 million and EUR 10.1 million and a consolidated operating profit before amortisation and depreciation (consolidated EBITDA) of between EUR 16.0 million and EUR 17.7 million.

Schwegmann continued that it was now essential to think for the long term, however, and to learn from the operating challenges seen in the past and to safeguard the Group’s future. This will require reorientation. “The Berentzen Group currently consists of a large number of separate parts, quite isolated in some cases, loosely held together by a beverages holding company. Our objective is to evolve our Group into an integrated, effective beverages incubator”, explained Schwegmann.

This first of all means structural changes. “We are introducing a matrix structure in order to be able to generate powerful synergies within the Group. This will enable us to significantly boost our efficiency. Areas that are intended to be organised at Group level in future include the supply chain, marketing, purchasing and innovation development. Over the past few weeks we have already started building up this matrix structure”, continued Schwegmann. Furthermore, an intense purge of the product range has been initiated, particularly among the non-alcoholic beverages segment in order to remove any low-margin products from the portfolio, thus enabling us to be also able to deploy production capacities in a more targeted manner. This step is also important in order to further expand on existing product successes. “We intend to make a real star out of our rough diamond Mio Mio”, said Schwegmann. To this end, we are going to expand the marketing and sales activities for this brand and make investments to boost efficiency at the production locations with a view to reflecting the expected increases in quantities.

In the Fresh Juice Systems segment, the processes relating to orange supplies will be restructured. A stronger presence on the part of the purchasing organisation at the harvest destinations, contractual safeguarding of the orange harvests at an early stage and possibly also the establishment of cooperation arrangements are suitable measures for achieving better supplies of oranges. 

On the way towards an integrated corporate group, a common sense of mission and a common vision are of central importance. “As part of a process, we have established that the common identity of the Berentzen Group consists of a sociable enjoyment of life, a positive attitude to life, pleasure of living”, said Schwegmann. This is what the Berentzen brand has always stood for. But this is also expressed by the stimulating effect of Mio Mio or a positive start to the day with a glass of freshly squeezed orange juice. “With our drinks we quench people’s thirst for life”, summarised Schwegmann. “The plans are for the Group to align itself along the lines of this motto and to grow closer together. This also means that we intend to develop exciting, modern and innovative new beverage concepts.”

“We will bring 2017 to a profitable conclusion as a beverages group. At the same time, we are repositioning ourselves to meet the future in order to ensure sustainable success over the long term”, concluded Schwegmann.