Unanimous Approval of the Financial Report
Soave. Unanimous approval was given to the 2015-2016 financial statement during the annual membership meeting held at Borgo Rocca Sveva on Friday, 1 November 2016.
Members expressed their full satisfaction with the work of Attilio Carlesso and Bruno Trentini, President and General Manager, respectively, of Cantina di Soave, and that of the entire Board of Directors.
Consolidated turnover of 116.5 million euros
Within the context of overall sales, particularly striking is the increase, in both volume (+11%) and value (+6%), in bottled wine sales, compared to the previous activity period.
Bottled wine sales, as distinct from bulk wine sales, maintained their share pre-eminence of 52%, of which a full 58% come from own-brand wine, the company’s core business, over against the 42% from private label products. Bulk wine, too, achieved an increase, both in volume (+14%) and in value (+12%) with respect to the previous report, thanks particularly to DOP and IGP wine sales, which turned in good performances, in spite of the market experiencing some decline in certain categories.
The respective shares of domestic and foreign sales, respectively 59% and 41%, is quite satisfactory; export bottled wine sales recorded a total increase in volume of +9%. Regarding specific markets, the leading recipient of white wine remains Great Britain (+17%), while Germany and Austria remain stable. For the highest added-value red wines, Scandinavia remains the leader, while sales are growing in Switzerland (+30%).
With respect to company capitalisation, net worth this year reached in excess of 55.5 million euros, over against a cash flow of over 10.6 million euros and a net profit after taxes of 1,792,000 euros. Both current assets of 21,701,000 euros and liquidity of 39,025,000 euros are reasons for satisfaction, which completes a picture that was already impressive last year, unique among sector companies.
The total value of conferred grapes was raised to 71.5 million euros and the outflow dedicated to remuneration for conferred grapes exceeded 55 million euros.
“We have rarely witnessed in the world such times of tension and irrational political and economic behaviour,” stated Attilio Carlesso, President of Cantina di Soave. “And yet, this report demonstrates that our company has succeeded in achieving brilliant results. In the last part of 2015 and the initial semester of 2016, management achieved record highs with regard to turnover as well as conferred grape payouts, which exceeded 55 million euros, a fact that is particularly significant for our cooperative structure. Such performances are possible thanks to a careful company strategy and to a 2015 vintage that was positive in both quality and quantity.”
“The situation in which the company currently finds itself,” stated Bruno Trentini, General Manager of Cantina di Soave, “is more solid and well-balanced than ever in all its components. The excellent performance of our bottled wines, and in particular of our own-brand products, is a very important achievement that goes to consolidate a position that we have enjoyed now for a number of years. In fact over the course of its financial year, our company has held steady in its marketing and sales strategy, both in Italy and abroad, strengthening existing brands and creating new ones, with the objective of consolidating its current market standings and of gaining new positions.
“With respect to promoting our denominations,” continued General Manager Trentini, “responsible management of a denomination means establishing the quantity of wine to release into the market without creating excess supply and calibrating the correct marketing position for the denomination. This is precisely what was done in the early 2000s for the Soave category (Cantina di Soave currently manages 48% of the entire DOC Soave and 43% of the DOC Soave Classico), Valpolicella (Cantina di Soave currently manages 49% of the entire DOC Valpolicella), and later for Lessini Durello (Cantina di Soave currently manages 70% of the entire DOC Lessini Durello), with the result that today these denominations are among the most profitable for the grapegrower in all of Italy.”
With respect to investments, the 2015-2016 financial year saw the launching of long-awaited re-structuring and enlargement works, which will entail the total reorganisation of the Viale della Vittoria production facility, in Soave, from grape reception to bottling, giving it a capacity of over 80 million bottles per year. To date, construction is complete for the purification plant and the building that serves as a services centre, located at the entrance of the site, and work has begun on the new storage warehouse, which will be completely automated. During the next financial year, construction will extend to the expansion of the current offices complex as well as to the new wine fining facility.
Over the course of the same financial year, attention was paid as well to the modernisation of the various production sites, which in recent years was focussed on the Montecchia di Crosara facility, in the Lessini Durello zone. In fact, contemporaneously with construction in Viale della Vittoria, re-structuring and enlargement work was begun at Cazzano di Tramigna, in the DOC Valpolicella area.
Still with regard to our production in Valpolicella, a building next to our facility in Illasi was purchased and will be re-structured into a hospitality facility, so that activities similar to those at Borgo Rocca Sveva can focus attention on the Valpolicella denomination.
“Some 50,000 Italian and foreign visitors a year take advantage of such activities,” commented the General Manager Bruno Trentini, “and they represent an incredibly important promotional tool, not only for Cantina di Soave but for the entire area. That is precisely why we have decided to continue along this path, promoting and strengthening other growing areas and denominations as well.”
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