Oeneo: Revenue of €275.5M, Down by 9.3%, with Margins Under Pressure
On Tuesday, Oeneo Group reported an annual revenue of €275.5 million for the fiscal year 2025-2026, a decrease of 9.3% at constant exchange rates, hampered by the prolonged contraction of the wine and spirits market. Despite rigorous cost management, the current operating margin is expected to decline by nearly 2 points, to just over 13%, highlighting the scale of the group's adjustment challenge in the face of unprecedented market conditions.
Resilient Corking, Significant Contraction in Aging
The group's two divisions are showing divergent trajectories. The Corking Division recorded a limited decline of 5.3% at constant exchange rates, with sales of nearly 2 billion cork stoppers, over 85% of which were from the Diam brand. This better performance is based on the strong reputation of the Diam brand, gaining new clients in France, Spain, and Oceania, amidst cautious stock reduction by distributors. In contrast, the Aging Division reached a historically low point with revenue of €64.8 million, down 20.2% at constant exchange rates. This decline is primarily driven by the barrel business, heavily impacted in the US by tariffs and in France in the cognac market.
Operating Margin Declines Despite Cost Control
The group's current operating margin, expected to remain just above 13%, has fallen nearly 2 points compared to 2024-2025. This relative resilience is attributed to rigorous control of operating expenses. The Corking Division benefits from effective cost management and is expected to maintain a current operating margin around 20% of revenue. The Aging Division will be unprofitable for the fiscal year, in a context of sharp decline in its main markets. These contrasting performances illustrate the increasing difficulty of the group to absorb the drop in harvest volumes (third consecutive year) and the global slowdown in wine consumption.
