Berentzen-Gruppe Aktiengesellschaft releases 2020 annual report: Profitable 2020 financial year despite impact of coronavirus pandemic

Berentzen-Gruppe Aktiengesellschaft (ISIN: DE0005201602), listed on the Regulated Market (General Standard) of the Frankfurt Stock Exchange, published its annual report for the 2020 financial year. In it, the Group confirms its preliminary business results for the past financial year published on February 3, 2021. According to the report, the Group generated consolidated revenues of EUR 154.6 (2019: 167.4) million. Group operating earnings before interest and taxes (Group EBIT) in fiscal 2020 were EUR 5.2 million (2019: 9.8), while Group operating earnings before interest, taxes, depreciation and amortization (Group EBITDA) were EUR 14.1 million (2019: 18.4).

"Despite the significant impact of the coronavirus pandemic on our business operations, we succeeded in closing the 2020 financial year profitably as well," summed up Oliver Schwegmann, Executive Board member of Berentzen-Gruppe Aktiengesellschaft. Against this backdrop, the Executive Board and Supervisory Board had decided to propose to the Annual General Meeting on May 11, 2021, the payment of a dividend of EUR 0.13 per share (previous year: EUR 0.28 per share). "Even in challenging times, we are thus standing by our shareholder-friendly dividend policy," Schwegmann said.

Berentzen Group business segments affected differently by the coronavirus pandemic
The business performance of the individual segments of the Berentzen Group varied greatly in the 2020 financial year. The Spirits segment largely matched the revenue level of the previous year (-0.4%). "Many of our spirits products, especially our branded spirits Berentzen and Puschkin, stand for conviviality and for celebrating in the community. In the pandemic year 2020, however, many such occasions for use were absent - from important seasonal highlights such as Easter or New Year's Eve to shooting festivals and music festivals to private parties. As a result, our business with branded spirits suffered significantly from the pandemic, both in Germany and abroad," explains Schwegmann. The fact that sales in the spirits segment nevertheless came close to matching the previous year's level was due to strong sales growth in premium spirits, he added. "Many consumers turned to high-quality luxury spirits last year. The attractive price-performance ratio of our premium private labels was the perfect answer to the highest quality demands combined with pandemic-related price sensitivity," says Schwegmann. "Here, our strategy of premiumization, which we started three years ago, has absolutely paid off."

There were also varied developments within the Non-alcoholic Beverages segment, which reported an overall year-on-year drop in sales of 11.8%. Temporary restaurant closures in the wake of the lockdowns led to significant declines in sales volumes and revenues, particularly in the concessions business. "In the sales volume of our own brand products in the Non-alcoholic Beverages business segment, on the other hand, we were able to achieve stronger overall growth rates than the overall market for non-alcoholic beverages in Germany, even in the challenging year 2020, which we are very pleased about," explains Schwegmann, adding, "Mio Mio, for example, once again recorded double-digit sales growth, and this despite the fact that student public life, for example, which is very important for the brand, also largely came to a standstill."

The Fresh Juice Systems segment was hardest hit by the coronavirus pandemic, with sales down 25.0% year-on-year. Here, too, sales of fruit presses in particular in the food service and hospitality sales channel came to an almost complete standstill at times in all markets relevant to the Berentzen Group. "However, food retailers also had to overcome many challenges last year with regard to maintaining operations and implementing hygiene standards. As a result, it was not the right time for many retail partners to consider an investment purchase, such as our fruit presses," says Schwegmann. However, due to the further increase in consumers' desire for healthy food as a result of the pandemic, as well as the increasing pressure on stationary food retailers to differentiate themselves from the dynamically growing online trade, the fresh juice systems segment would at the same time offer the greatest opportunities for future growth.

"In summary, we can say that the coronavirus pandemic has of course affected us as a group of companies. However, our broad positioning across various beverage categories, our extensive brand and product portfolio, and our coverage of various distribution channels meant that the decline in Group sales was comparatively moderate at 7.7 percent, enabling us to close the fiscal year profitably," Schwegmann said.

Outlook for the 2021 financial year
The Berentzen Group also anticipates negative effects from the coronavirus pandemic in the 2021 financial year. "The ongoing restrictions on private and social life will continue to have a noticeable impact on our business activities, so that the 2021 financial year as a whole will be under similar auspices as the 2020 financial year and a comparable level of revenue and earnings can therefore be expected," Schwegmann said. Specifically, the Group anticipates consolidated revenue in a range of EUR 152.0 million to EUR 158.0 million, consolidated EBIT between EUR 4.0 million and EUR 6.0 million, and consolidated EBITDA between EUR 13.0 million and EUR 15.0 million. EBIT and EBITDA are thus forecast in exactly the same range as in the previous year.

The lockdown situation, which is currently ongoing and will be extended once again, is expected to have a significant negative impact on business activity, particularly in the first two quarters of 2021. "However, we are convinced that the sociable joy of life and celebrating in community will return to people's lives - even if only in small steps at first - as society becomes increasingly inoculated. We are already preparing for this time in the Group with a large number of measures," says Schwegmann. These included the further expansion of the company's own field sales organization Berentzen-Vivaris Vertriebs GmbH, which was launched last year, the sales launch of the premium cider brand Goldkehlchen, which was acquired in 2020, on the German market, and the contract filling partnership with Imnauer Mineralquellen, which has just begun, for the further distribution expansion of Mio Mio in southern Germany. "In addition, we are working intensively on new product developments in all our business areas. As a group of companies, we are getting ready to return to our growth path of recent years before Corona," Schwegmann concluded.