Just before Christmas, I’d like to present another listed mid-sized company that particularly benefits from the sales around Christmas and the New Year.

We are talking about the Hamburg wine trading group Hawesko Holding. Hawesko is an acronym made up of the initial letters of the words Hanseatisches Wein- und Sekt-Kontor.

Before presenting you the recently published figures for the 3rd quarter of 2023 of the Hamburg wine trading company, I would like to give you a brief introduction to Hawesko Holding.

Hawesko Holding in brief: Hawesko was founded in 1964 and is based in Hamburg. According to its own information, Hawesko Holding and its subsidiaries are a leading trading and distribution company for wines, champagnes and spirits in Germany and the rest of Europe.

Hawesko Holding employs around 1,300 employees in the Retail (with the retail chains Jacques‘ and Wein & Co.), B2B (with the wine wholesalers Wein Wolf, Abayan and Grand Cru Select) and E-Commerce (in particular with the internet portals HAWESKO, Vinos and WirWinzer) segments.

The shares of Hawesko Holding SE are listed on the Hanseatic Stock Exchange Hamburg and in the Prime Standard segment of the Frankfurt Stock Exchange. Hawesko is a subsidiary of the also based in Hamburg Tocos Beteiligung GmbH.

Declining figures: In the 3rd quarter of 2023, Hawesko achieved a turnover of 143 million euros. This was about 3% less than in the same quarter of the previous year, when the turnover was still at 148 million euros. In this period, the adjusted operating profit (adjusted EBIT) could be maintained at the level of the previous year at 5.3 million euros through consistent cost reductions.

Hawesko cites the weakened consumer mood created by inflation and the resulting recession in Germany as the reason for the decline in turnover. The resulting restraint in online shopping could not be compensated by slight growth in the Retail segment and a positive development in the catering trade (B2B segment).

For the period January to September 2023, turnover is at the level of the previous year at around 460 million euros. The operating result for the nine-month period amounts to 18.6 million euros. That is 9.7% less than last year.

The Board of Directors of Hawesko Holding expects, due to the still dampened consumer sentiment, a business development on the level of the previous year for the 4th quarter of 2023, instead of the originally expected recovery.

Overall, the Board of Directors forecasts a turnover decline of up to 3% and an operating result (EBIT) in a range of 32 to 35 million euros for 2023. The original EBIT forecast had been at 37 million euros.

This downturn is also reflected in the share price of Hawesko. This has lost around 23% in value since the beginning of the year. For me, Hawesko shares are not a buy candidate, as the German Mittelstand currently has more promising papers to offer. You can find my favorites in my newsletter „Schöneich’s Hidden Champions“.