Berentzen Gruppe : Interim Report Q1/2021

Interim Report Q1

2021

2	Interim Report Q1 / 2021

 Content

3  Overview Q1/2021

4  Business performance and economic position

4  Significant events in the reporting period

4  Financial performance

6  Cash flows and financial position

7  Report on subsequent events

7  Report on risks and opportunities

8  Outlook

10 Information about the publisher

Interim Report Q1 / 2021

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Overview Q1/2021

Consolidated revenues down 13.2% from the same quarter in the previous year. Positive consolidated EBIT and consolidated EBITDA, but likewise below the level of the previous year. Positive operating cash flow above the previous- year level.

As expected, the coronavirus pandemic and the related restrictions on social life negatively impacted business activities and therefore the development of revenues and earnings in the first quarter of 2021. The earnings forecasts for the 2021 financial year as a whole therefore remain unchanged.

Q1/2021	• Consolidated revenues: EUR 31.4 million (EUR 36.2 million).
	• Consolidated EBIT: EUR 0.5 million (EUR 1.1 million).
	• Consolidated EBITDA: EUR 2.7 million (EUR 3.2 million).
	• Operating cash flow: EUR 1.6 million (EUR 0.8 million).
	• Cash and cash equivalents: EUR 4.5 million (EUR 6.6 million).
	• Dynamic gearing ratio: 0.45 (0.15).
	• Equity ratio: 39.8% (36.0%).
Outlook	• Earnings forecasts for the 2021 financial year confirmed.

4	Interim Report Q1 / 2021

(1) Business performance and economic position

(1.1) Significant events in the reporting period

Effects of the coronavirus pandemic

As was already the case in the 2020 financial year, the coronavirus pandemic was also a significant event in the reporting year, in line with expectations. Some of the measures taken by federal and state governments to contain the coronavirus continue to have an adverse impact on the German economy. These measures include closing food and drink establishments, introducing extensive social distancing measures and banning events.

All segments of the Berentzen Group continue to be affected by the effects of the coronavirus pandemic. The Fresh Juice Systems segment saw a decline in sales of fruit presses in particular, owing to a suspension of investments in the direct and indirect sales channels restaurants and food retailers. The business with non- alcoholic beverages and branded spirits was impacted in particular by the almost complete closure of restaurants. This predominantly impacted the Non-alcoholicBeverages segment. In the Spirits segment, the cancellation of celebrations also impacted sales performance, in particular of those branded products that tend to be consumed on social occasions.

(1.2) Financial performance

				Q1/2021			Q1/2020		Change
Consolidated revenues excluding alcohol tax		EUR'000		31,439			36,214		- 13.2 %
Spirits segment		EUR'000		18,051			20,040		- 9.9 %
Non-alcoholic Beverages segment		EUR'000		9,655			11,346		- 14.9 %
Fresh Juice Systems segment		EUR'000		3,308			4,549		- 27.3 %
Other segments		EUR'000		425			279		+ 52.3 %
Consolidated EBITDA		EUR'000		2,668			3,192		- 16.4 %
Consolidated EBITDA margin		%		8.5			8.8		- 0.3 PP 1)
Consolidated EBIT		EUR'000		463			1,082		- 57.2 %
Consolidated EBIT margin (return on sales)		%		1.5			3.0		- 1.5 PP 1)

1) PP = percentage points.

The Berentzen Group generated consolidated revenues of EUR 31.4 million (EUR 36.2 million) in the first three months of the 2021 financial year. This corresponds to a 13.2% decline in revenues. Developments were shaped by the effects of the coronavirus pandemic across the entire reporting period, whereas in the equivalent quarter of the previous year only the second half of March was affected by measures to contain the coronavirus.

In the Spirits segment, revenues declined by 9.9%, thus falling short of the level in the same quarter of last year. Owing to the cancellation of numerous consumption occasions, such as Karneval and private celebrations, the joint revenue volume for the umbrella brands Berentzen and Puschkin in Germany was 31.6% below the level of the year-ago comparison period. By contrast, revenues from exports and private-label brands only exhibited a slight decline of 2.0%, with the different private-label

Interim Report Q1 / 2021

5

brand categories developing differently: While revenues from premium and medium product concepts recorded a significant increase of 32.9%, revenues from standard products declined by 8.8%. Revenues from the export business with branded spirits dropped considerably by 27.3%.

In the Non-alcoholicBeverages segment, revenues likewise fell, with a decline of 14.9%. Business performance relating to beverages under the Sinalco franchise brand was considerably weaker, with revenues standing at 93.1% below the levels seen in the same quarter of the previous year. This was due to the closure of hospitality establishments as a result of the coronavirus pandemic. The contract bottling business also saw significant declines, with revenues falling by 17.3%. By contrast, revenues from proprietary brands (accounting for over 70% of the revenues generated in this segment in the reporting period), predominantly generated in the food retail sector, exhibited a slightly positive development of 1.2% overall. This was driven mainly by a significant 10.8% rise in revenues from beverages distributed under the proprietary brand Mio Mio.

The Fresh Juice Systems segment is still the segment hit most severely by the effects of the coronavirus pandemic within the Berentzen Group. Revenues generated in this segment were substantially lower, by 27.3%, in the first quarter of 2021. Revenues from all system components

• fruit presses, fruit, and filling containers - declined, although the system components developed differently in terms of their rates of decline in this regard: While fruit presses and fruit exhibited considerable declines of 42.0% and 20.8%, respectively, the drop in revenues from filling containers was less severe compared with the previous-

year quarter, at 6.2%. In contrast, a pleasing development was observed in the core regions of Germany and Austria, which are looked after by Group sales teams: Here, revenues rose sharply, by 54.8% collectively, in the business involving fruit presses compared with the equivalent reporting period in the previous year.

Consolidated EBIT was again positive in the first quarter of 2021 at EUR 0.5 million, but still fell considerably short of the level of the year-ago comparison period (EUR 1.1 million). The basis for this decrease was the significantly lower volume of sales and the lower gross profit margin resulting from a less advantageous segment mix compared with the equivalent quarter in the previous year. On the other hand, other operating income increased and the level of operating expenses fell. This partly compensated for the aforementioned development in gross profit. Consolidated EBITDA based on the above- mentioned consolidated EBIT came to EUR 2.7 million (EUR 3.2 million). The smaller decline in consolidated EBITDA compared with that of consolidated EBIT resulted from higher amortisation and depreciation, which rose by EUR 0.1 million.

There were no exceptional earnings effects as such to be taken into account in the first three months of the 2021 financial year, whereas an impairment expense of EUR 1.4 million was recognised as an exceptional earnings effect in the Non-alcoholicBeverages segment in the first quarter of the 2020 financial year as a result of the coronavirus pandemic.