Hawesko Holding SE, one of Germany’s largest wine trading groups, has released its unaudited preliminary figures for the second quarter of 2025—revealing a disappointing performance that has prompted a downward revision of its full-year guidance.
In a challenging macroeconomic environment, both sales revenue and earnings have come in below expectations, reflecting the broader struggles faced by premium wine retailers and distributors across Europe.
Q2 Performance Falls Short
For the period April 1 to June 30, 2025, Hawesko’s sales revenue declined by 1%, while adjusted EBIT fell by EUR 2 million compared to the same quarter in 2024. These results contribute to a first-half cumulative revenue of approximately EUR 285 million, with adjusted EBIT of around EUR 6 million—both notably lower than the previous year's corresponding figures.
This lacklustre performance is attributed to subdued consumer sentiment and restrained discretionary spending across key markets. According to the Executive Board, the market environment remains tough, and no major recovery is expected until the holiday season at the end of the year.
Revised Outlook for 2025
In light of the weak first-half performance and the persistent challenges in Q3, Hawesko has adjusted its full-year forecast:
- Sales revenue is now projected to decline by 1% to 3% (previously: in line with or slightly above 2024 levels).
- Operating EBIT is expected to range between EUR 27 to 30 million, a reduction from the previous estimate of EUR 31 to 34 million.
- Free cash flow is anticipated at EUR 10 to 15 million, down from EUR 14 to 20 million.
- Return on capital employed (ROCE) is forecast to fall within 10% to 13%, from an earlier guidance of 11% to 14%.
Countermeasures and Strategic Response
To address the downturn, the company has launched an internal performance improvement program. This initiative is designed to stimulate sales, enhance profitability, and accelerate the execution of its strategic priorities. While specific measures have not been disclosed, it is expected that Hawesko will place greater emphasis on digitalisation, targeted marketing, and cost efficiency across its wholesale, retail, and e-commerce channels.
The group’s Christmas season performance will now be critical in determining the final outcome of its 2025 fiscal year. With wine traditionally being a high-performing category during Q4, a rebound remains possible—but far from certain.
Outlook
As premium wine consumers continue to tighten their belts in the face of inflationary pressure and economic uncertainty, Hawesko Holding SE’s mid-year report underscores the fragility of the beverage alcohol sector in 2025. The company’s response—combining internal restructuring with revised expectations—illustrates the growing need for agility and innovation in a volatile market landscape.
Source: Hawesko Holding