Berentzen Gruppe : Group Half-Yearly Financial Report 2021

Group Half-yearly Financial Report

2021

2

Letter to shareholders

Interim Group Management Report

Key figures

Key figures of the Berentzen Group

					HY 1 2021		HY 1 2020		Change
					or 06/30/2021		or 06/30/2020	2021 / 2020
Consolidated revenues excluding
alcohol tax		EURm			67.7		73.5		- 7.9 %
Spirits segment		EURm			41.3		42.8		- 3.6 %
Non-alcoholic Beverages segment		EURm			18.7		22.7		- 17.7 %
Fresh Juice Systems segment		EURm			6.8		7.4		- 8.9 %
Other segments		EURm			0.9		0.5		+ 89.0 %
Total operating performance		EURm	67.5	74.2	- 9.0 %
Contribution margin after marketing
budgets		EURm			26.9		28.1		- 4.0 %
Consolidated EBITDA		EURm			7.1		6.4		+ 9.7 %
Consolidated EBITDA margin		%			10.4		8.8		+ 1.6 PP 1)
Consolidated EBIT		EURm			2.6		2.1		+ 28.3 %
Consolidated EBIT margin		%			3.9		2.8		+ 1.1 PP 1)
Consolidated profit		EURm			1.5		0.1		> + 100 %
Operating cash flow		EURm			5.1		3.2		+ 56.7 %
Cash flow from investing activities		EURm			- 1.3		- 2.9		+ 53.4 %
Free cash flow 2)		EURm			- 9.9		- 9.6		- 3.6 %
Consolidated equity ratio		%			37.6		32.5 3)		+ 5.1 PP 1)
Employees		Number	488	498	- 2.0 %
1) PP = percentage points.
2) Cash flow from operating activities plus cash flow from investing activities.
3) 12/31/2020.

Key figures for the Berentzen common share

				HY 1 2021			HY 1 2020	Change
				or 06/30/2021			or 06/30/2020	2021 / 2020
Berentzen common share
(ISIN DE0005201602, WKN 520160)		EUR / share	6.56	6.24		+ 5.1 %
share price / XETRA
Market capitalisation		EURm		61.6	58.6		+ 5.1 %
Dividend 1)		EUR / share		0.13			0.28		- 53.6 %

1) In the current financial year the dividend was paid out on May 14, 2021 (July 5, 2020).

Consolidated Half-yearly Financial Statements

Declarations and Other Information

3

 Content

4  Letter to shareholders

6  Interim Group Management Report

6  Underlying principles of the corporate group

7  Economic report

23 Report on risks and opportunities

24 Forecast report

30 Consolidated half-yearly financial statements

30 Consolidated Statement of Financial Position 31 Consolidated Statement of Comprehensive Income

32 Consolidated Statement of Changes in Shareholders' Equity

32 Abridged Consolidated Cash Flow Statement

33 Abridged notes to the consolidated financial statements

33   Policies and methods

35   Explanatory notes to the Consolidated Statement

   of Financial Position

41   Explanatory notes to the Consolidated Statement   of Comprehensive Income

42   Other explanatory notes

49 Declarations and other information

49 Declaration by the legal representatives

50 Company information

4

Letter to shareholders

Interim Group Management Report

A. Letter to shareholders

over the past one and a half years we have repeatedly faced new and unprecedented developments and challenges. This has taught us that to make it through the current situation, two qualities are particularly important: entrepreneurial ability and operational agility. You can rest assured that we, the Executive Board and the entire team at Berentzen Group, have both. Beyond this, we always approach our day-to-day work with the optimism that despite the ongoing challenges we currently face, for example in the form of rising infection rates due to a new variant of the virus, the coronavirus pandemic will be overcome in the foreseeable future and we will together find our way back to - a potentially new kind of - normality.

These strengths have enabled us to keep operating profitably over the entire course of the pandemic, including in each of the individual six quarters affected, although we were sadly unable to avoid the dampening effects of the coronavirus pandemic on our business activities.

Let's now take a look at the Berentzen Group's economic development in the first half of the 2021 financial year. As at June 30, 2021, the consolidated revenues of the Berentzen Group amounted to EUR 67.7 million, compared with EUR

73.5 million in the previous-year period. This development was shaped by two factors in particular, which essentially had already been anticipated in our forecast for the 2021 financial year as a whole. Firstly, unlike in the previous 2020 financial year, the first two and a half months of the 2021 financial year were heavily impacted by the coronavirus pandemic. Secondly, the termination of a longstanding contract bottling agreement as at March 31, 2021 resulted in a loss of revenues in the second quarter of 2021. Consolidated earnings (consolidated EBIT) amounted to approximately EUR 2.6 million as at June 30, 2021, equating to an increase of EUR 0.6 million compared with the equivalent period last year. This growth is primarily attributed to efficiency gains, i.e. savings on overheads, as well as higher other operating income, which overall more than compensated for the decline in consolidated gross profit, which was on the moderate side compared with the reduction in revenues. Against this background, we once again managed to close the first half of the 2021 financial year very profitably, despite the enormous challenges encountered during the first six months of the year. This was helped by the fact that we had a good second quarter, during which we improved our earnings ratios in all segments compared with the same quarter last year.

Now let's take a look at the economic development of the Berentzen Group in a bit more detail. Revenues in the Spirits segment declined by 3.6 % compared with the equivalent period last year. Within this segment, revenues in the business with export and private-label products increased slightly by 1 % - supported by product concepts with comparatively high margins - whereas the business with branded spirits in Germany recorded a decline in revenues of 13.2 % owing to the ongoing lockdown, which meant that social occasions and shared celebrations, where many of these spirits tend to be consumed, could not take place.

4

Consolidated Half-yearly Financial Statements

Declarations and Other Information

5

Revenues in the Non-alcoholicBeverages segment fell by 17.7 %, which was due almost exclusively to the aforementioned termination of a contract bottling agreement as at March 31, 2021 as well as to weak developments in the franchise business in the restaurant sales channel. In contrast, positive developments were observed in the business with our proprietary brands, particularly the Mio Mio brand - revenues here climbed by a substantial 14 % in the first half of 2021, building on the already high level of revenues generated previously. We are thrilled about this development, and it encourages us to continue along our path towards establishing ourselves as a national supplier of branded products in the Non-alcoholicBeverages segment as well.

As in the previous year, Fresh Juice Systems was the segment most heavily impacted by the effects of the coronavirus pandemic, with investment items, such as our fruit presses, being purchased only after much thought and consideration

• this being the case for both restaurants and hotels, which have been particularly affected by the pandemic, and the food retail trade. Overall, revenues in this segment declined by 8.9 % compared with the first half of last year. Despite this, we still believe that this segment has the greatest potential to return to a profitable growth path after the end of the pandemic, in part because we are seeing freshness and health become increasingly important topics for consumers.

Above we mentioned the importance of not only possessing entrepreneurial ability and operational agility, but also having an optimistic outlook. On that note, let's take a look at our expectations for the further course of the 2021 financial year. We still believe that we are on track to achieve the forecast communicated in the 2020 Annual Report. For example, we expect to achieve consolidated revenues in the range of EUR 152.0 million to EUR 158.0 million, a consolidated EBIT between EUR 4.0 million and EUR 6.0 million and a consolidated EBITDA between EUR 13.0 million and EUR 15.0 million. This means that we expect to achieve the same results as in the 2020 financial year. We still believe that the Berentzen Group's business activities will pick up in the second half of the financial year - despite rates of new coronavirus infections currently on the rise again. This expectation is based on the percentage of people already vaccinated, especially in the risk groups, meaning that any restrictions on public and private life in the future should not be imposed to anywhere near the same extent as we saw in spring.

We would like to thank you for the trust you have placed in us and for your continued loyalty to us in these challenging times. Together, we have shown that we have staying power. Let's also stick together in our optimism that we will soon be able once more to enjoy unrestricted social events, a zest for life and shared celebrations - which is what our products are meant for. We are ready for that moment. But until then, we will spend every day working on fantastic beverage ideas to help quench your thirst for life while we all wait for normality to return. We hope you'll accompany us on this journey!

Kind regards,

Oliver Schwegmann	Ralf Brühöfner
Executive Board member	Executive Board member