• Sales revenue rises by 8.3% to EUR 384.0 million
• Operating earnings (EBIT) and consolidated profit significantly up on previous year
• Sustained difficult market environment expected for 2022/2023
• Dividend increase by EUR 0.10 to EUR 0.60 per share planned

Trier, 22 September 2022. Schloss Wachenheim AG can look back on a successful business year 2021/22 (30.6): The group achieved a sales revenue totalling EUR 384.0 million, corresponding to an increase of 8.3% compared to the previous year (EUR 354.6 million). The number of bottles sold, converted to a 0.75 l bottle average, was up slightly on the previous year (220.2 million) by 6.7% at a total of 234.8 million. With three operational subgroups in Germany, France and East-Central Europe, Schloss Wachenheim AG is one of the leading sparkling and semi-sparkling wine producers in Europe and the world, and also markets a wide assortment of other alcoholic and non-alcoholic wine-based drinks as well as children's party drinks.

Operating earnings (EBIT) for the 2021/22 financial year amount to EUR 29.2 million, an increase of almost 20% compared to the previous year (EUR 24.4 million). The year's consolidated profit stands at EUR 21.2 million compared to EUR 17.7 million the previous year; earnings per share at EUR 1.73 (EUR 1.32 the year before).

There were particular challenges in 2021/22 from an increasingly cloudy consumer sentiment as well as significant increases in wine, raw material and energy prices, which made it necessary to correspondingly increase our own sales prices. "With this result in a difficult environment, our business model in 2021/22 once again proved its strength: three subgroups predominantly managed on a decentralised basis in operational terms and firmly established in their respective markets with own brands and products,” says Oliver Gloden, Spokesperson of the Executive Board of Schloss Wachenheim AG, summing up the company's recipe for success.

Germany: Slight growth in sales volume and revenue

In the German subgroup, a sales revenue of EUR 136.2 million was achieved; this corresponds to an increase of 2.8 % compared to the previous year (EUR 132.5 million). This development resulted from a continuation of the upward trend at Schloss Wachenheim AG, with increases in particular seen with sparkling wines and semi-sparkling wines. “By contrast, our specialist wine division was unable to reach the high level of the previous year, during which the hotel industry and gastronomy were affected by forced closures for many months and consumption then moved to the private sector”, says Oliver Gloden.  Sales revenue in this sector fell by just under 10%. In total, sales volumes of the German subgroup in 2021/22 increased by 5.6% to 88.9 million bottles (previous year 84.2 million bottles).

France: Enjoyable upward trend

In the French subgroup, sales volumes increased by 7.7% to 57.1 million bottles (previous year 53.0 million bottles). “What was decisive for this increase was primarily a pleasant development in the export business”, says Oliver Gloden pleased. “However volumes in the domestic French market were also slightly up compared to the previous year”. As a result of price increases that had to be implemented due to raw material and energy price increases, the sales revenue grew disproportionately by 10.7% to 89.7 million euros.

East-Central Europe: Further significant increases in sales and revenue

The East - Central European subgroup, represented by AMBRA S.A. and its subsidiaries, closed the past financial year with a 12.5 % increase in revenue to 167.8 million euros; the sales volume of 97.6 million bottles was 8.2 % above that of the previous year (90.2 million bottles). Price increases as a result of raw material and energy price increases also took their toll here. Dynamic domestic markets in Poland, Romania, the Czech Republic and Slovakia once again proved to be the driving force behind this growth. “Contrary to our original expectations, the markets that have grown steadily in recent times have continued to develop favourably. As a result, we were again able to make significant gains and further expand our positions in all markets and in most product categories and sales areas”, concludes Oliver Gloden.

Sales volume and earnings development in 2022/23 marked by sustained difficult environment

“In the 2021/22 fiscal year, we were able to further strengthen our market position in a difficult environment. The prospects for the current fiscal year 2022/23, however, are still noticeably impaired by the sustained challenging situation on the relevant procurement markets, which makes it necessary for us to further increase prices during a time that is already difficult for consumers”, says Oliver Gloden. Continued extensive sales-promoting and advertising measures are intended to support the development of strong brands. Nevertheless, Schloss Wachenheim AG is expecting slightly declining sales volumes in all subgroups and only price-related increases in sales revenue. The expectations for the operational result in 2022/23 is accordingly between 25 million euros and 27 million euros.

Adjustment of dividend to EUR 0.60 per share planned

In light of the development in earnings in 2021/22 and the outlook for the 2022/23 financial year, the Executive Board and Supervisory Board will propose a dividend of EUR 0.60 per share at the Annual General Meeting. This corresponds to an increase of 20% compared to the distribution of EUR 0.50 per share the previous year.


Note:
The Group Annual Report 2021/22 will be published on 22 September 2022 at www.schloss-wachenheim.com.