Oeneo: Revenue down 9.3% to €275.5M, Breeding Division Goes into the Red
Oeneo will publish its annual results for 2025-2026 on Thursday in a challenging environment for the wine industry, marked by a historic drop in production and a contraction of global consumption. The group reports a revenue of €275.5M, down 9.3%, and a current operating margin of 13.7%. Despite this apparent resilience, a vulnerability emerges: the Breeding Division plunges into negative territory, while the Corking Division compensates with its strong profitability.
Revenue Down, but Profitability and Cash Flow Preserved
The annual revenue stands at €275.5M, down 9.3% at constant exchange rates. This contraction reflects both the weakness of the harvests and the postponement of customer investments in an inflationary context. The current operating result reaches €37.8M, yielding a current operating margin of 13.7%, a level the group describes as solid. The operating cash flow amounts to €66.6M, up from the previous year (€53.0M). The free cash flow advances to €46.4M compared to €38.0M the previous year, fully covering the distribution of dividends (€22.5M), share buybacks (€15.5M), and financial interests (€2.8M). This improvement mainly stems from better management of working capital needs, particularly through the optimization of wood stocks in the Breeding Division.
Corking Carries the Group, Breeding Severely Penalizes Profitability
The Corking Division, which accounts for 76% of the consolidated revenue, displays remarkable resilience. With a revenue of €210.7M (contained decrease of 5.3%) and nearly 2 billion cork stoppers sold, it maintains a current operating margin of 20.3%, almost unchanged from the previous year (20.6%). This performance is based on tight control of material and production costs, despite constrained client budgets and reduced distributor stocks. In contrast, the Breeding Division accumulates difficulties. Its revenue falls by 20.2% to €64.8M, penalized by the collapse of investments from winegrowers, particularly in the United States (tariff context) and France (weakened cognac market). This drop in activity results in a current operating loss of -€2.5M. The group emphasizes that the adaptation measures implemented during the fiscal year will not 'fully take effect' until 2026-2027, particularly in the upstream sector.
2026-2027: Announced Consolidation without Visible Relaunch
For the fiscal year 2026-2027, the group anticipates 'another year of consolidation' without significant changes in the economic climate since the start of this fiscal year. The group continues its cost optimization efforts, its innovation policy (notably around the new Twood barrel in Breeding) and the maintenance of its controlled financial structure. The net financial debt remains low at 17.9% of equity, while available cash strengthens to €51.0M. The ordinary dividend remains unchanged at €0.35 per share. The central challenge for 2026-2027 lies in the Breeding Division's ability to quickly regain positive profitability, without which the group's operating margin could structurally deteriorate. The Corking Division, meanwhile, aims to consolidate its market shares while preserving its high profitability.
