23.03.2017 Berentzen-Gruppe Aktiengesellschaft: Group confirms ongoing positive business development with good results for the 2016 financial year

23. March 2017 07:48

• Consolidated revenues rise 7.3% to EUR 170.0 million
• Consolidated EBIT rises 38.2% to EUR 10.5 million
• Proposed dividend of EUR 0.25 per share
• Strategic brands Berentzen, Puschkin and Mio Mio see significant rise in sales
• Dynamic growth in Fresh Juice Systems segment continues
• Early refinancing of the bond will significantly cut financial expenses as of 2018

Haselünne, March 23, 2017 - Berentzen-Gruppe Aktiengesellschaft, which is listed on the regulated market (General Standard) of the Frankfurt Stock Exchange (ISIN: DE0005201602) today presented its annual report for the successful 2016 financial year. According to this report, consolidated revenues increased by some 7.3% to the current EUR 170.0 million (2015: EUR 158.5 million). Earnings before interest, tax, depreciation and amortisation (EBITDA) came to EUR 17.5 million (2015: EUR 15.7 million), which corresponds to growth of 11.5% on the previous year. Consolidated EBIT (earnings before interest and tax) even improved by as much as some 38.2% to EUR 10.5 million (2015: EUR 7.6 million).

In light of these positive business developments, the Executive Board and Supervisory Board will propose a dividend of EUR 0.25 per share to the annual general meeting to be held on May 19, 2017.

'The 2016 financial year met our expectations in full, both with regard to results and to the way the ongoing development of the group is being structured. All segments have made a contribution to this strong rise in revenue and results,' explains Frank Schübel, Executive Board Spokesman of Berentzen-Gruppe Aktiengesellschaft. In the spirits business, the group saw an increase in revenue to EUR 101.7 million (2015: EUR 98.4 million), in the Non-alcoholic Beverages segment revenue grew to EUR 46.7 million (2015: EUR 42.9 million). The most dynamic growth was achieved by the Fresh Juice Systems segment with revenue of EUR 21.6 million in comparison to EUR 17.2 million in the previous year. 'This year we have made good progress towards our goal of becoming a diversified beverage company with a successful product portfolio,' says Frank Schübel.

Spirits: Strategic brands develop significantly above market level

The Spirits segment saw positive developments overall. Sales grew significantly in the group's two strategic brands Berentzen and Puschkin in particular. In the domestic business, the Berentzen core brand achieved sales growth of 4.9%, Puschkin likewise saw exceedingly positive developments with a rise in sales of 3.4%. 'Our strategic brands are developing better than their respective comparative markets, which we see as further evidence for the competitiveness of our strategy', says Frank Schübel. The Berentzen Group consistently invests in expanding its core brands and drew attention to itself in 2016 with product innovations such as Berentzen Cranberry Apéritif and Puschkin Pink Grapefruit among others. The strategic brand management was also acknowledged by a high-ranking expert jury: in the renowned brand award presented by absatzwirtschaft only a few days ago, the Berentzen brand received second prize in the category 'Best Brand Digitalisation'.

In the international business with brand spirits, sales fell by 10.2% on account of the ongoing difficult political situation in some markets. Even here, however, there is a slowly emerging trend towards normalisation on the core international markets and in the duty-free business. In the spirits business with dealer brands and branded private-label products, sales once again saw very positive developments on the back of excellent customer relationships in Germany and other countries, returning growth of 7.6% in comparison to the previous financial year.

Non-alcoholic beverages: Investments in building up Sinalco are paying off; innovative flagship Mio Mio brand is developing into a national assortment brand

With sales in the business with soft drinks and mineral waters up by 8.0%, the Non-alcoholic Beverages segment likewise saw significant growth in the past year. The investments made in building up the Sinalco brand, especially in the area of gastronomy, are beginning to pay off: An increase of 15.4% was recorded in the franchise business with soft drinks under the Sinalco brand in the 2016 financial year. Secondly, the pleasing development in sales of the well-positioned, regional water brands (St. Ansgari, Emsland Quelle, Märkisch Kristall and Grüneberg Quelle) produced by the group company Vivaris made its contribution to the positive overall development.

The innovative and recently introduced new Mio Mio brand experienced a particularly large leap forward in 2016. This involved more than putting two exciting product innovations onto shelves in the form of Banana and Ginger. At the same time, significant progress has been made with regard to expanding the Mio Mio brand to become an assortment brand available throughout Germany. This is reflected in a very positive way in the sales figures: Mio Mio products returned a rise of 61.0% and significantly more than 12 million bottles.

Fresh juice systems: Highly dynamic growth in fruit presses and fruit

The business with fresh juice systems organised under the Citrocasa brand continued its high level of dynamic growth. Sales of fruit presses increased by 49.4% in 2016 thanks to new models, among other things. In this respect, it became apparent once again that the compact Revolution equipment developed the previous year excellently supplements the other series and has triggered great demand, especially in the field of gastronomy.

Sales of quality fruit (oranges) also increased by 12.0% in the 2016 financial year despite a difficult supply situation with extremely bad harvests in some cases, which involved additional logistical measures. 'The trend towards healthy sustainable food is unbroken. With Citrocasa we aspire towards quality leadership with fruit presses and ultra-fresh drinks. Our customers reward these efforts', says Frank Schübel. Growth was also generated in sales of customised bottling systems: Sales rose by 13.0%.

Early bond refinancing will ensure positive stimuli for the future; significant cuts in financial expenses as of 2018.

Just under ten months prior to the repayment date of its corporate bond (ISIN: DE000A1RE1V3), the Berentzen Group exploited the favourable financing environment and the good development of the company to obtain early refinancing in December 2016 by means of a syndicated loan with a volume of EUR 25.5 million. In this respect, Berentzen-Gruppe Aktiengesellschaft only needs to cover around half the nominal amount of the corporate bond due in October 2017 with external refinancing. The other half will be repaid from existing own funds. 'I am very satisfied as this permits us to achieve two goals at once: the long-term security of our financing plans and attractive terms', explains Ralf Brühöfner, the Chief Financial Officer of Berentzen-Gruppe Aktiengesellschaft.

From October 2017 onwards, the Berentzen Group is expected to be able to reduce its annual financing costs by more than two million euros, which is more than half. 'We anticipate a significant reduction in borrowing costs with correspondingly significant positive effects - not only on our cash flow but, of course, also on our financial performance and thus, ultimately, on our equity', says Ralf Brühöfner.

As of December 31, 2016, the group had liquid funds of EUR 67.7 million at its disposal (2015: EUR 63.1 million); the equity ratio disclosed on the face of the balance sheet totalled 23.9% (2015: 24.2%).

A positive outlook once again

In the current 2017 financial year, the corporate group intends to consistently follow the path it has taken so far. The long-term strategy of achieving a sustainable improvement in financial performance through profitable growth, remains the central issue in this respect.

Correspondingly, the Executive Board is anticipating another rise in revenue and results in comparison to the 2016 financial year. The plans are for consolidated revenues to reach a level of between EUR 170.4 million and EUR 179.2 million and for consolidated EBIT and consolidated EBITDA to range from EUR 11.2 to 12.4 million and/or from EUR 17.8 to 19.7 million.

Specifically, the dynamic growth in the Fresh Juice Systems (Citrocasa) and Non-alcoholic Beverages segments is to be exploited and further developed in a consistent manner. Citrocasa will penetrate new markets in 2017. In the area of non-alcoholic beverages, retail and consumers alike may anticipate further positive surprises on the products side. In the Spirits business, the focus is to be placed on a sustainable improvement in the competitive position in declining markets. 'Despite all these developments, we always uphold our pragmatic management philosophy, a mix of entrepreneurial courage and managerial prudence', Frank Schübel notes in conclusion.

About the Berentzen Group:

The Berentzen Group is a broad-based beverage company operating in the following three segments: Spirits, Non-alcoholic Beverages and Fresh Juice Systems. The Berentzen Group is one of the oldest producers of spirits in Germany with a corporate history going back over 250 years. Today, it has a presence in more than 60 countries around the world with well-known brands like Berentzen and Puschkin and attractively priced private label products. In its Non-alcoholic Beverages segment, the corporate group produces mineral waters, carbonated and non-carbonated soft drinks under its own brands and also boasts more than 50 years of experience in the franchise business for soft drinks, currently acting as franchisee for the Sinalco brand. In addition, the Berentzen Group markets innovative fresh juice systems under the Citrocasa brand in its third segment, thus serving the fast-growing market for modern, health-oriented drinks. The Berentzen-Gruppe Aktiengesellschaft share (ISIN DE0005201602) is listed on the regulated market (General Standard) of the Frankfurt Stock Exchange.

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