The Hawesko Group, one of Europe’s leading wine merchants, reported a total sales revenue of EUR 433.0 million for the period between January 1 and September 30, 2024.
This figure represents a 4.0% decline compared to the same period in 2023. Declines were recorded across all three of the Group's main business segments—E-Commerce, Retail, and B2B—primarily due to subdued consumer demand, lower sales per purchase, and external challenges such as adverse weather conditions and market disruptions.
Market Challenges and Regional Impacts
In an already strained market characterized by weak consumer spending, additional challenges such as regional flooding in Germany, Austria, and the Czech Republic dampened customer demand. Furthermore, the European Football Championship, which drew consumers away from typical purchasing behaviors, resulted in a temporary summer slump.
Despite these setbacks, the Group managed to capitalize on catch-up effects later in the year by launching new marketing initiatives. These efforts aimed to stimulate demand and mitigate earlier losses, reflecting the Group’s adaptive strategies in response to market pressures.
Gross Profit and Margin Improvements
The Group’s gross profit for the first nine months of 2024 stood at EUR 194.0 million, a slight decline of 1.8% from the previous year. However, the gross profit margin rose by 1.0 percentage point to 44.8%, primarily due to optimized purchasing conditions and refined pricing strategies. This improvement highlights the Group's commitment to maintaining profitability despite lower sales volumes.
Operating Income and Costs
Operating EBITDA for the period reached EUR 33.6 million, a decrease of EUR 2.8 million compared to the previous year. The operating EBITDA margin dropped slightly to 7.8% (down 0.3 percentage points). The decline reflects higher depreciation and amortization expenses following significant investments, including the expansion of the IWL logistics warehouse near Hamburg.
Personnel expenses remained steady at EUR 56.2 million, with wage increases offset by structural adjustments and productivity enhancements. Advertising costs, which saw a 2.9% reduction year-on-year, were primarily optimized within the E-Commerce segment, ensuring efficient customer acquisition without cutting the overall budget.
Operational Efficiency Gains
The Group continued to benefit from improved freight and logistics operations. Expenses in these areas were EUR 1.2 million lower than the prior year due to optimized supplier relationships and selective process improvements. Freight and logistics costs accounted for 5.7% of total sales, consistent with the previous year despite rising external service costs.
Other Operating Income and Expenses
Other operating income declined by 9.7% to EUR 12.8 million, attributed mainly to the absence of one-off effects recorded in 2023, such as provisions reversals and city-funded construction reimbursements. Meanwhile, miscellaneous operating expenses, including IT, travel, and tasting costs, increased slightly but remained manageable within the Group’s broader cost structure.
Net Income and Financial Results
The Group reported a consolidated net income of EUR 4.8 million, including discontinued operations related to The Wine Company in Sweden. Earnings per share rose to EUR 0.51, compared to EUR 0.32 in the same period of the previous year.
The financial result was impacted by higher interest expenses due to elevated borrowing costs following rate hikes by the European Central Bank (ECB) through late 2023. However, improved interest income and cost reductions in associated investments partially offset these effects.
Outlook and Strategic Adjustments
Despite a challenging environment, Hawesko Group remains focused on long-term growth through strategic investments and operational efficiency. The expansion of its logistics capabilities and refined cost management position the Group to navigate future market fluctuations effectively.
The Group's leadership remains optimistic, emphasizing that evolving customer demands and market conditions will guide its strategic priorities as it works toward stabilizing performance and fostering resilience across its business segments.
This report underscores the Group's ability to adapt to external challenges while maintaining profitability and a strong market presence.