In a year marked by economic headwinds and shifting consumer behavior, the Hawesko Group, one of Germany’s leading wine trading companies, delivered a robust performance that underscores its strategic agility and financial resilience.
Despite a slight decline in revenue, the company reported improved profitability and maintained its position as a stable force in the turbulent wine market.
Solid Results in a Declining Market
The Hawesko Group generated EUR 639 million in sales for 2024, a modest decrease of 2% compared to the previous year. This decline, however, came in the context of a shrinking wine market across Europe, making Hawesko's performance particularly noteworthy.
While retail sales slightly exceeded those of the previous year, the e-commerce segment saw a controlled dip of just under 2%. The B2B sector experienced a decrease of around 4%, which still outpaced the broader market's downturn. Encouragingly, all three segments saw an upward trend towards the end of 2024, especially around the Christmas period—supported by the expansion of the Tornesch e-commerce warehouse, which significantly enhanced delivery performance.
Profitability Strengthened Through Strategic Discipline
One of the standout achievements for the year was the improvement in operating EBITDA, which rose to EUR 58.1 million. This was driven by an improved gross profit ratio and strict cost management, bringing the operating EBITDA margin up to 9.1% (compared to 8.9% in 2023). Even though operating EBIT declined slightly to EUR 32.3 million—largely due to increased depreciation from inventory growth—the core profitability of the business remained intact.
CEO Thorsten Hermelink reflected on the year:
“We have successfully concluded the 2024 financial year. Despite uncertain market conditions and changes in consumer behavior, the Hawesko Group remains in excellent health. We will continue to strive to outperform the market and gain market share.”
Outlook for 2025: Strategic Focus with Measured Optimism
Looking ahead, the Hawesko Group remains cautious but optimistic. The Board anticipates up to 2% sales growth in 2025, while maintaining an operating result comparable to 2024. Segment-wise:
- Retail is expected to grow slightly, buoyed by stable customer demand.
- B2B may experience moderate growth at best.
- E-commerce will focus on innovation and customer experience to stabilize its performance amidst broader online market challenges.
The first quarter of 2025 reflected the ongoing pressures in the market, compounded by the timing of Easter (at the end of April), which affected early-year sales. Nevertheless, the Group's continued emphasis on product renewal and targeted marketing strategies reflects its adaptability in uncertain times.
Stable Dividend Confirms Shareholder Value Orientation
In line with its consistent financial strategy, the Board will recommend a dividend of EUR 1.30 per share at the upcoming Annual General Meeting—matching the previous year’s payout. This reinforces Hawesko’s commitment to providing shareholders with a reliable return, while retaining the financial flexibility to independently shape future growth.
Source: Hawesco Group