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28/10/2019 - PRESS RELEASE

Balance sheet approved as of June 2019. €27.4 million in dividends for shareholders

President Giorgi: "We’re ending the year in the plus for our winery’s accounts"

BRONI - The Terre d’Oltrepò general meeting will take place on Monday 28th October at 3:00 pm at Teatro Carbonetti in Broni. President Andrea Giorgi will review the balance sheet as of 30 June 2019 and then highlight any new market strategies that will have a significant impact on this wine-making giant from the Oltrepò Pavese. This starts from the new high-end product line, La Versa, released onto the market thanks to the close collaboration between the winery and the world-renowned winemaker, Riccardo Cotarella. "We’re ending this financial year almost €60,000 in the plus", explained the top boss at Terre d’Oltrepò, Andrea Giorgi. "In total, €27.4 million was paid in dividends to shareholders compared with about €16.5 million last year, an increase of 66%. This positive result was achieved by keeping costs carefully under control, while consolidating the relationship with customers both for bottled and bulk wine". Andrea Giorgi will provide an overall picture beyond just the balance sheet figures by also outlining the performance of the market where the winery operates, the largest in Lombardy. "2018", he explained, "saw an outstanding increase in yield, totalling over 50 million kg compared with about 27 million the previous financial year. The harvest was outstanding almost all across Italy and it’s in line with the general situation. The production factor together with constant demand caused a fall in the price of wine, which hit its lowest point in summer 2019. Just like over the last thirty years, our winery has only been set up for making wine in bulk and it’s only been in the last two years that we’ve been reconverting production towards different market segments, starting from bottles. We’re going to press on faster down this road with upcoming lines made by the winemaker, Mr Cotarella. Unfortunately, we’ve started down this road a couple of decades late and so today, despite the changes made having been set up, we’re experiencing fluctuations in the bulk market which is still currently our company’s main market". The winery’s position on the market was improved by trying to focus on the values of quality, sustainability, modernisation, respect and reputation. "These are the levers which we think are best for generating greater returns for shareholders", confirmed president Giorgi, "we think we have to promote our products better by making greater headway into sectors where the margins are higher. The industrial plan we’ve started focuses on specialising on production sites: in Broni, we wanted to step it up a gear as a major collection centre, while bottling the wine at the Casteggio winery and obviously bottling sparkling wines in Santa Maria della Versa. The plan included acquiring the La Versa brand, an icon of Italian sparkling wine, which has a good bottling plant and, above all, a label that is the only one in the region that is immediately recognisable by the consumer. There are currently 651 shareholders. Mr Giorgi is focusing on the winery’s cooperative role: "Our cooperative has an unquestionable cooperative relationship that cannot be matched by other operators in the sector. The figures show that it’s the only real producer in the supply chain that primarily processes shareholders’ grapes. Throughout the financial year, the winery has strived to meet shareholders’ needs, but it cannot overlook the collective interest of the wineries as a whole, which naturally compresses individual interests to achieve a common goal".