Wine producer Schloss Wachenheim warns sales, earnings below forecasts

Schloss Wachenheim has warned the German wine group's annual revenue and earnings will come in below forecasts laid out in May.

The sparkling wine producer said it expects to have generated revenue of €447.4m ($520.4m) in the year to 30 June, an increase of 1.3% compared to the previous year.

However, in May, it had been forecast Schloss Wachenheim would see its annual revenue rise by "around 4%.

The number of bottles the company sold throughout the year – converted to 0.75-litre bottles – increased by 1.2% to 224.1m.

Schloss Wachenheim's operating profit is anticipated to have dropped 3.5% on the year prior to €27.2m.

Preliminary consolidated net income after taxes is expected to amount to approximately €16.2m, a 12.4% decrease on the previous year, and well below a forecast of €20-22m.

According to Schloss Wachenheim, all its operating divisions – Germany, France and markets in central and eastern Europe – saw their performance come in “below expectations” in the fourth quarter of the fiscal year.

The publication of the company's audited full-year results is scheduled for 26 September.

In the first half of Schloss Wachenheim's financial year, the company increased its sales volumes by 1.1% to 127.9 million bottles amid growth in markets in central and eastern Europe.

Turnover grew 2.2% to €256.4m, with the company also pointing to price increases and exchange rates.

It booked an EBIT of €25.8m, compared to €22.9m in the same period last year.

When Schloss Wachenheim issued its half-year results in February, it had forecast its annual turnover would increase 5% and its full-year EBIT would reach €31-33m.

"Wine producer Schloss Wachenheim warns sales, earnings below forecasts" was originally created and published by Just Drinks, a GlobalData owned brand.

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