PRESS RELEASE

Hawesko Group defies challenging market conditions: Sales and profitability remain at a high level in 2023

• Hawesko Group holds its own in a challenging environment with falling consumer spending and a declining wine market: sales are almost on a par with the previous year.
• Profitability was also stabilised: Despite enormous cost pressure due to sharply rising production costs, operating performance is only slightly down on the previous year thanks to internal improvements and intelligent pricing.

Hamburg, 18 April 2024: Hawesko Holding SE (HAW, HAWG.DE, DE0006042708) today published its annual report for the 2023 financial year, providing a detailed overview of the past financial year.

Thorsten Hermelink, CEO of the Hawesko Group, commented as follows: "In the 2023 financial year, we succeeded in continuing our development of recent years at a high level, despite a very tricky economic environment. Our focus on cost discipline and intelligent pricing has paid off. This underlines our ability to continue to fascinate customers with our offers and confirms our role as a leading player in the European wine trade. Driven by our goal of creating extraordinary moments of enjoyment, we remain motivated and determined every day to continue on our path and emerge stronger from these challenging times."

In the 2023 financial year, the Hawesko Group generated sales of € 660 million, which was slightly below the previous year (-2%) but impressively up by double-digit percentages on the level before the pandemic. While the operating units in the Retail and B2B segments performed very well, the Group was unable to escape the weak trend in the German e-commerce market - in line with the industry as a whole. In an environment characterised overall by consumer restraint and a general decline in per capita wine consumption, the Hawesko Group nevertheless performed better than the market as a whole.

Highly differentiated price increases - combined with further development of the product ranges, which strengthened customers' purchasing behaviour - contributed to this development. At the same time, rising costs along the entire value chain were countered thanks to targeted cost reductions and productivity improvements, with the result that Group operating EBIT* of € 34 million was only slightly lower than in the previous year (€ 37 million). The operating EBIT margin was a solid 5.1 per cent (previous year: 5.6 per cent).

In autumn 2023, the Hawesko Group entered into a significant partnership in the form of a joint venture with the Dunker Group (Tallinn, Estonia) in order to expand further. With sales of € 77 million, the Dunker Group is a leading and dynamically growing B2B wine retailer in the premium segment in Estonia, Lithuania and Latvia, thereby strengthening the strategic ambitions to grow further in Europe.

Looking ahead to 2024, the Board of Management again expects the Hawesko Group to move sideways in view of the persistently challenging economic conditions. However, in anticipation of pleasing year-end business, a slightly positive sales trend is expected. On the earnings side, given the usual seasonality with a profitable year-end business, it is expected that at least the previous year's level will be achieved for the year as a whole. The e-commerce segment is likely to be influenced most directly by consumer sentiment. In comparison, the Retail segment and its perception as a business for everyday needs with very high customer loyalty and the B2B segment are expected to continue their stable development.

Following the completion of the Hawesko Group's largest single investment to date in the expansion of the logistics centre in Tornesch in spring 2024, the use of technological support was also successfully increased. The autonomous mobile robot technologies used for the first time to expand customer service and cost efficiency form the basis for further growth and thus the expansion of permanent jobs.

With sales down on the previous year in the first quarter of 2024, the challenges remain great. The Hawesko Group is continuing to adapt to the current economic situation. At the same time, optimisations are being implemented from product selection to sales strategy and the increased use of AI. The first recognisable signs indicate that consumer sentiment will improve slightly in the second half of the year and could lead to impetus to buy.

The Hawesko Group anticipates an operating result of around € 34 million in 2023. At over 5 percent, the profit margin achieved is within the forecast range. The persistently challenging market conditions already led to systematic cost reductions in all segments of the Hawesko Group at the start of 2023. This was the only way to stabilise the operating result.

*adjusted for non-recurring, non-operating items in accordance with the catalogue

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As a leading trading group for high-quality wines, champagnes and spirits, the Hawesko Group employs around 1,300 people across the Retail (Jacques’ and Wein & Co.), B2B (especially Wein Wolf, Abayan and Grand Cru Select) and e-commerce (especially HAWESKO, Vinos and WirWinzer) segments. The shares in Hawesko Holding SE are listed on the Hanseatic Stock Exchange, Hamburg, and in the Prime Standard segment of the Frankfurt Stock Exchange.

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