Berentzen-Gruppe Aktiengesellschaft publishes preliminary results for the first half of the year

                                                                                        
                                                                                            Press Release No. 10/2024

Berentzen-Gruppe Aktiengesellschaft publishes preliminary results for the first half of the year
Significant increase in key earnings figures achieved

• Consolidated operating profit (EBIT) of EUR 5.1 million - an increase of 55% compared to the same period of the previous year
• Consolidated revenues of EUR 88.1 million almost at the previous year's level
• Earnings forecast raised: Higher operating profitability expected
• Advanced negotiations on the sale of the Grüneberg plant

Haselünne, August 1, 2024 - Berentzen-Gruppe Aktiengesellschaft (ISIN: DE0005201602), which is listed on the Regulated Market (General Standard) of the Frankfurt Stock Exchange, today published preliminary figures for the first half of the 2024 financial year. Accordingly, consolidated earnings before interest and taxes (consolidated EBIT) increased significantly by around 55% to EUR 5.1 million (H1/2023: EUR 3.3 million) in the first six months of the 2024 financial year. Consolidated earnings before interest, taxes, depreciation and amortisation (consolidated EBITDA) reached EUR 9.4 million (H1/2023: EUR 7.3 million). Consolidated revenues totalled EUR 88.1 million (H1/2023: EUR 89.0 million).

"We are very pleased about this massive increase in our consolidated EBIT and consolidated EBITDA earnings figures. Our profitability strategy, which we are consistently pursuing with Building BERENTZEN 2028, is beginning to bear fruit," says Oliver Schwegmann, CEO of Berentzen-Gruppe Aktiengesellschaft. The significant growth is essentially attributable to two factors. Firstly, it has now been possible to not only compensate for the sharp cost increases of recent years by implementing price increases, but also to regain margin quality. In addition, the marketing success of the latest innovation under the Berentzen umbrella brand, the Smoothie Shot, contributed to the earnings trend. "We have always emphasised over the past year that the most important goal now is to regain gross profit power. We have now succeeded in doing so for several quarters in a row, with the increase in our relative gross profit margin in the second quarter of the 2024 financial year being particularly impressive," says Schwegmann.

With the presentation of its new corporate strategy Building BERENTZEN 2028 in February of this year, the Berentzen Group also announced a medium-term forecast for the 2028 financial year for the first time. In addition to other targets, a return on sales (EBIT margin) of 8% was also announced. "If we look at the second quarter of the 2024 financial year in isolation, we have managed to achieve a return on sales of almost eight per cent. In the second quarter of the 2023 financial year, the EBIT margin was still below five per cent. We are therefore on track to achieve our ambitious medium-term targets. The profitability of the Berentzen Group is on track!" explains Schwegmann.  

The continuing slump in consumer spending as a result of inflation and, in particular, a lack of marketing initiatives due to difficult price negotiations with key trading partners led to a decline in sales volumes overall. Nevertheless, Consolidated revenues remained almost stable at the previous year's level with a slight decline of less than 1%.

Sale of the Grüneberg plant

"When we presented our new Group strategy Building BERENTZEN 2028, we already emphasised that we were putting all of our structures and processes to the test in order to increase efficiency, discontinue unprofitable business and concentrate even more on our strategic focus areas," explains Schwegmann. As part of this process, the decision was made to discontinue the Grüneberg site in Brandenburg, where the Group's Non-alcoholic Beverages are produced, as the first important implementation step. "The Grüneberg site has been a burden for the entire group of companies in terms of both earnings and liquidity, especially since the massive cost increases as a result of the war in Ukraine," says Schwegmann. "Continuing this location is therefore not an option for us from an economic and strategic point of view. Despite this, our primary goal is always to be able to secure the preservation of the site and thus the jobs. We are therefore very pleased that we are currently in advanced negotiations with a strategic buyer with the aim of taking over the business operations," Schwegmann explains the background. The intended sale is expected to lead to a one-off exceptional effects of around EUR 4.9 million in the 2024 financial year, which will have a negative impact on earnings but will be largely neutral in terms of liquidity. In the medium term, however, the Berentzen Group expects the sale to have a positive impact of up to EUR 1 million per year on consolidated operating profit. At the Grüneberg site, the purchaser will bottle products of the Mio Mio brand in addition to its own products as a contract filling partner of the Berentzen Group.

Further outlook for the 2024 financial year

Against the backdrop of the positive operating performance in the first half of the year and the expected effects from the sale of the Grüneberg plant, the Berentzen Group is adjusting its forecast for the 2024 financial year. Accordingly, the corporate group now expects a Consolidated operating profit (Consolidated EBIT) in a range of EUR 9.0 to 11.0 million (previously: EUR 8.0 to 10.0 million; 2023: EUR 7.7 million) and a Consolidated operating profit before depreciation and amortisation (Consolidated EBITDA) of between EUR 18.0 and 20.0 million (previously: EUR 17.2 to 19.2 million; 2023: EUR 16.0 million). Consolidated revenues are now expected to range between EUR 185.0 million and EUR 195.0 million (previously: EUR 190.0 million to EUR 200.0 million; 2023: EUR 185.7 million), particularly in light of the discontinuation of business activities with regional products in Brandenburg. "As a result, we expect to achieve a higher Consolidated operating profit despite lower Consolidated revenues than originally expected. We would therefore close the financial year significantly more profitably," said Schwegmann.

The final business figures as well as further information on the first half of the 2024 financial year and the annual forecast will be published as planned on August 14, 2024 with the Group half-yearly financial report.

About the Berentzen Group:

The Berentzen Group is a modern, innovative beverage company with a history dating back more than 260 years. Broadly positioned in the segments of Spirits, Non-Alcoholic Beverages, and Fresh Juice Systems, the Group today develops, produces, and markets beverage concepts for a wide range of consumer needs, including spirits, mineral water products, soft drinks, and fruit presses for fresh-squeezed orange juice. With well-known brands like Berentzen, Puschkin, Mio Mio, and Citrocasa, as well as contemporary private-label products, the Berentzen Group is present today in more than 60 countries of the world. The shares of Berentzen-Gruppe Aktiengesellschaft (ISIN DE0005201602) are listed on the Regulated Market (General Standard) of the Frankfurt Stock Exchange.

Further information is available at:

Berentzen-Gruppe Aktiengesellschaft
Thorsten Schmitt

Director Corporate Communication & Strategy

Tel. +49 (0) 5961 502 215

pr@berentzen.de

www.berentzen-gruppe.de