Berentzen-Gruppe Aktiengesellschaft: Strong revenue and profit growth in first half of 2016

16-Aug-2016 - Germany

Berentzen-Gruppe Aktiengesellschaft, which is listed on the regulated market (General Standard) of the Frankfurt Stock Exchange, recorded an increase in consolidated revenues to EUR 82.0 million (EUR 75.6 million) in the first half of the 2016 financial year. Consolidated operating profit (EBIT) rose sharply in the reporting period to reach EUR 4.0 million (EUR 2.5 million), while consolidated profit increased to EUR 1.5 million (EUR 1.2 million).

Frank Schübel, Executive Board Spokesman of Berentzen-Gruppe Aktiengesellschaft, is satisfied with the performance of the corporate group in the first half of 2016: "Our strategic programmes are running pretty much to plan, which is helping to constantly improve our profitability indicators. Our realignment strategy, which primarily addresses healthy and fresh drinks segments, is now paying dividends for a third year in a row. And we're also enjoying stable growth rates with our Berentzen and Puschkin spirits brands thanks to a high level of innovation. Our half-year profit shows how the strategy we're pursuing is bearing the desired fruit."

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The 8.6% increase in revenues compared with the first half of last year essentially stems from positive developments in the three business segments: Spirits, Non-alcoholic Beverages and Fresh Juice Systems.

Within this total, the activities involving fresh juice systems operated under the Citrocasa brand continued to expand rapidly, with revenues rising by 33.5% in the first six months of the current financial year. Frank Schübel comments: "We're extremely satisfied with the pace of growth to date. As market penetration for the Citrocasa business has been low to this point in most countries, we expect the volume of business to go on expanding here. Our goal for the medium term is to fill in any blank spaces on the map."

The Non-alcoholic Beverages segment also performed well with revenue growth of 6.9%, which is much faster than the market. Between January and June 2016, sales of beverages marketed under the Mio Mio brand grew by nearly 60% compared with the first half of last year on the back of an expanded distribution network and greater consumer acceptance. Sales in the franchise business involving Sinalco branded drinks were up more than 20% on the first six months of 2015 thanks to strong new customer business.

Revenues in the Spirits segment expanded by 4.9% during the reporting period in the face of a contracting domestic market overall. Sales volumes of the Berentzen and Puschkin umbrella brands rose by 4.7% and 10.3% respectively, a success built around innovative concepts together with consistent brand management and promotions policy. The Berentzen Group recorded an increase of 10.6% in sales of branded dealer and private-label products in line with gains from new volume contracts and a higher proportion of value-adding concepts.

The international business with branded spirits contracted by 16.2% compared with the equivalent period last year, attributable mainly to the well-known situations in the crisis-hit countries of eastern Europe and Turkey. Wherever possible, suitable adjustments to the cost structures have been made in response to these market conditions.

Outlook:

Frank Schübel concludes with this explanation: "Our forecast is based on a total of three elements. First, you have our organic growth in those proprietary brands that generate above-average margins in the internal product ranking. Second, we can observe a positive profit trend in the still young Sinalco franchise operation. And third, the Citrocasa brand is seeing its profitability rise with its revenues. This gives us confidence that the financial performance will remain strong in the second half of the year coupled with sustainable growth - the kind of growth that underscores the continuity of the Berentzen Group's development."
Consequently, Berentzen-Gruppe Aktiengesellschaft is retaining unchanged its expectation for the 2016 financial year of a sharp increase in both total operating performance and consolidated operating profit compared with last year. (dpa)

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