(BFM Bourse) – The world leader in cooperage is posting very strong growth over the first three months of its staggered 2022-2023 financial year. TFF Group continues to benefit from its strategy of diversification into alcohol, Bourbon and Whiskey in the lead. For the current year, the family group displays its serenity as to the achievement of an annual turnover of more than 360 million euros. It is also counting on an improvement in its profitability.
Like the specialist in the closure and aging of wine Oeneo, TFF Group recorded during its 2021-2022 financial year (ending in April), a record turnover of 302.62 million euros despite the health crisis and recent inflationary pressures. The Burgundian company then explained this performance by the combined effect of a return of sustained demand in all of the group’s diversification businesses – large containers, stainless steel, logging – and by the continued strong development of Bourbon activities.
Little known to the general public, TFF Group has been manufacturing barrels for aging wine and spirits for more than a century and over 4 generations. Based in Saint Romain, the family business which ranks first in the world, currently has 27 sites worldwide, including 13 cooperages. The operating sites are mainly located in the most prestigious wine regions or alcohol distillation regions around the world.
And the start of the 2022-2023 year is looking very auspicious for TFF Group. The world leader has just presented sustained activity for its first quarter of its staggered 2022-2023 financial year. From May to July, the company’s consolidated turnover thus exceeded 100 million euros, at 109.3 million euros thanks to growth of 66.6% at current exchange rates and 48 .6% at constant exchange rates and scope.
“The financial year is starting in accordance with what we had anticipated and what we had prepared for”, welcomes Jérôme François, the chairman of the management board who represents the fourth generation at the head of TFF Group.
A fine performance by the Wines and Alcohols divisions
The TFF Group Wines and Alcohols business divisions both posted “good performance”. The Wine Division, which ended the 2021-2022 financial year with a slight increase of 4.8% in published data (+2.1% on a like-for-like basis) was able to accelerate the pace over the first three months of the current year. In the first quarter, TFF’s historical activity recovered markedly, posting growth of 64.1% in published data (+45.9% like-for-like) to 55.4 million euros. The volumes of activity which were down in 2021-2022 are recovering under the effect of the return of “sustained demand after three vintages impacted by climatic events, the health crisis and low harvest levels.”
On the American market, TFF Groupe is seeing a good trend in activity, driven by the need to replenish drum stock levels. “It also benefits from expectations on the part of customers given the extension of transport times”, also underlines the group. In Europe, business growth was boosted by the earliness of the 2022 vintage and wine volumes also expected to rise. “All the businesses posted solid performances, with a very significant rebound in wine barrels in particular.
As for sales of Bourbon barrels, these remained well oriented, on a market described as “very buoyant” by the Burgundy group. The group indicates that it is concentrating its efforts on oak supplies and on strengthening its production capacities in order to meet the very strong demand. TFF Group’s objective is to produce more than 650,000 barrels over the financial year.
The activity of the Scotch Whiskey division also benefited from an upward trend in selling prices. TFF Group would like to point out limited growth in trading activity volumes due to “tension on stocks of used kegs in the face of vigorous demand and difficulties encountered in the supply chain”.
A 2022/23 financial year under the sign of accelerating growth
Despite the economic, geopolitical and monetary uncertainties and the inflationary environment that characterize this period, TFF Group displays its serenity regarding the achievement of its annual activity objectives, namely an annual turnover of more than 360 million euros and an improvement in its profitability.
The group adds that it is pursuing its “profitable growth” strategy based on high added value businesses and mastered know-how with a well-balanced economic model between the wine and alcohol markets.
“The exercise is starting in line with what we had anticipated and what we had prepared for. There is no doubt that we will meet the ambitious objectives that we have set ourselves for the coming years, thus marking the beginning of a new cycle in the development of TFF Group.
The optimism displayed by the family group is also reflected on the stock market, the title TFF Group evolves on its annual highs, credited with an increase of 1.4% to 36 euros.
Sabrina Sadgui – ©2022 BFM Bourse
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