Quarterly Report • May 29, 2013
Quarterly Report
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GESCHÄFTSBERICHT 2009
3-MONTHS' REPORT 2013
Peter Boder CEO
ALBERT HIRsch Member of the Management Board
Dear Shareholders,
UNITEDLABELS AG completed the first quarter of the current financial year with revenue totalling €5.7 million (prev. year: €11.5 million). The year-on-year decline in revenue is attributable to the company's decision to focus on core business fields with higher contribution margins and the associated discontinuation of revenue flows from unprofitable areas of business. Within this context, the amalgamation and restructuring of the UNITEDLABELS sites in Italy, Belgium, France and Germany were a key factor. Additionally, sales generated in Spain fell to €2.5 million (prev. year: €3.2 million) as a result of the country's economic climate. The new e-commerce activities of UNITEDLABELS, managed in cooperation with our most recently created subsidiary, Elfen Service GmbH, got off to a good start.
In total, earnings before interest, taxes, depreciation and amortisation (EBITDA) were in positive territory at €11 thousand. The quarterly loss was scaled back from €-0.3 million to €-0.2 million. At the same time, the cost reduction programme initiated in 2012 had a significant impact on business performance. Having implemented the full range of optimisation measures announced by the company, UNITEDLABELS is looking to make cost savings of around €3.0 million per annum in 2013 and 2014.
In cooperation with its subsidiary Elfen Service, the company will be taking an equally focused approach to executing its projects planned within the area of B2C operations and the expansion of value creation processes. These projects are to be completed over the course of the second quarter.
Our first-quarter performance shows quite clearly that UNITEDLABELS has succeeded in meeting the significant challenges presented in 2012. We are on the right track and are well equipped for the future.
Yours sincerely,
Peter Boder Albert Hirsch CEO Member of the Management Board
| Key Figures 3-Months' | |||||
|---|---|---|---|---|---|
| Q1 2013 (€ '000) |
Q1 2012 (€ '000) |
||||
| Revenue | 5,663 | 11,451 | |||
| EBITDA* | 11 | 33 | |||
| EBIT | -144 | -149 | |||
| Profit before tax | -247 | -258 | |||
| Profit for the year | -248 | -299 | |||
| Earnings per share (€) | -0.05 | -0.07 | |||
| Number of employees | 119 | 134 |
* incl. amortisation of usufructuary rights
La marca Barrio Sesamo®, así como los personajes, marcas y elementos de diseño asociados son propiedad de Sesame Workshop, y son licenciados por esta entidad. © 2013 Sesame Workshop. Todos los Derechos Reservados.
The consolidated financial statements for the quarter have been prepared in accordance with internationally accepted accounting standards, on the basis of the International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS) promulgated by the International Accounting Standards Board (IASB), particularly in accordance with IAS 34. Within this context, neither the interim financial statements nor the management report for the interim period have been audited.
In preparing the consolidated financial statements, the Management Board is required to make estimates and assumptions that affect the reported amounts of assets and liabilities/equity as well as the amounts disclosed in the income statement. It is possible that these assumptions and estimates may not coincide with actual occurrences. Actual results may differ from forecasts if consumer behaviour or the actions of licensors or trading partners (customers, suppliers) change. The changes to these assumptions compared with those applied to the last annual financial statements are outlined in the following sections of this report.
The quarterly financial statements have been prepared according to uniform accounting policies; they are consistent with those policies applied to the last annual financial statements.
The financial statements are presented in euros.
THE PINK PANTHER TM & © 1964 – [year of manufacture] Metro-Goldwyn-Mayer Studios Inc. All Rights Reserved.
Group revenue amounted to €5.7 million (prev. year: €11.5 million) in the first three months, which corresponds to a year-on-year decline of 50%. The downturn in sales was attributable to both the Key Account segment, at -55%, and the Special Retail segment, at -39%. In absolute terms, the Key Account segment generated revenue of €3.6 million (prev. year: €8.1 million). Key Account sales thus accounted for 64% of total revenue. Revenue generated by the Special Retail segment accounted for 36% of aggregate sales.
After the first three months of 2013, EBIT stood at €-0.1 million (prev. year: €-0.1 million); the consolidated loss for the period amounted to €-0.2 (prev. year: €-0.3 million). The decline in profit for the period is attributable primarily to lower revenue. Having said that, the contraction is within the range expected by the company.
Earnings within the Special Retail segment also declined in the period under review, down from €0.1 million in the first three months of 2012 to €-0.2 million in 2013. The Key Account segment recorded a downturn in earnings from €0.6 million to €0.3 million. In parallel, however, the result of unallocated items improved from €-0.8 million to €-0.3 million.
On this basis, segment performance was as follows:
Primary reporting format – Customer segments (unaudited)
| 2013 | ||||
|---|---|---|---|---|
| Unallocated | ||||
| in € '000 | Special Retail | Key Account | items | Group |
| Sales revenue | 2,036 | 3,627 | 5,663 | |
| Segment expenses | -1,943 | -2,990 | -271 | -5,204 |
| Depreciation/amortisation | -281 | -302 | -20 | -603 |
| Segment result | -188 | 335 | -291 | -144 |
| Net finance cost | -205 | |||
| Result from at-equity investment | 101 | |||
| Result from ordinary activities | -247 | |||
| Taxes | -1 | |||
| Consolidated profit/loss | -248 |
Sales revenues 2013 2012 Germany, Austria, Switzerland 2,573 4,333 Iberian Peninsula 2,509 3,501 France 222 1,011 Rest of the World 359 2,606
Group 5,663 11,451
| Total assets | 2013 | 2012 |
|---|---|---|
| Germany, Austria, Switzerland |
19,274 | 33,814 |
| Iberian Peninsula | 6,755 | 10,186 |
| France | 143 | 914 |
| Rest of the World | 3,358 | 5,819 |
| Group | 29,530 | 50,733 |
| 2012 | ||||
|---|---|---|---|---|
| Unallocated | ||||
| in € '000 | Special Retail | Key Account | items | Group |
| Sales revenue | 3,332 | 8,119 | 11,451 | |
| Segment expenses | -2,936 | -7,074 | -745 | -10,755 |
| Depreciation/amortisation | -312 | -485 | -48 | -846 |
| Segment result | 84 | 560 | -793 | -150 |
| Net finance cost | -270 | |||
| Result from at-equity investment | 161 | |||
| Result from ordinary activities | -259 | |||
| Taxes | -41 | |||
| Consolidated profit/loss | -299 |
Property, plant and equipment fell by €0.1 million as a result of systematic amortisation/depreciation, while intangible assets rose by €0.9 million as at 31 March 2013. The latter was attributable primarily to the purchase of new licensing rights. At-equity investments increased by €0.1 million, as income attributable to the investee Open Mark United Labels GmbH was well within positive territory. Inventories continued to contract, falling by €0.5 million compared to 31 December 2012. Trade receivables fell by €1.5 million compared to 31 December 2012. This was due to the active decision taken by the company to scale back revenue with a focus on its profitable core business.
As at 31 March 2013, the Group's equity ratio stood at 20.5%. The company continues to hold 46,199 no-par-value treasury shares. The book value thus stood at €1.45 per share. Equity covered non-current assets at a rate of 32% and liabilities at a rate of 26%. Bank borrowings were reduced by €0.6 million and trade payables by €0.7 million.
In addition to his 63% interest in UNITEDLABELS AG, Mr. Peter Boder has a 100% shareholding in Facility Management Münster GmbH. UNITEDLABELS AG occupies office premises in Gildenstraße 2j, which are leased to the company by Facility Management GmbH. In the first three months of 2013, the amount received was €12 thousand (prev. year: €23 thousand). In 2011, a lease agreement was signed with Facility Management GmbH for the use of facility roof surfaces to operate photovoltaic systems; the amount payable under this agreement at the end of the year amounts to €5 thousand.
On 24 July a so-called "procédure de sauvegarde", i.e. a debtor safeguard procedure under French law, was initiated in respect of the French entity Embassy SAS, in which UNITEDLABELS AG holds an indirect interest of 45% via Groupe Montesquieu.
Therefore, the carrying amounts of all loans and receivables towards the French-based entities Embassy SAS and Montesquieu Finances SAS were adjusted in full by both UNITEDLABELS AG and the UNITEDLABELS Group in the previous financial year. Current operations are being maintained, with due amounts having to be paid in advance. Revenue associated with this business totalled €109 thousand in the first quarter of 2013.
At the end of March 2013, the UNITEDLABELS Group employed 126 (prev. year: 140) members of staff. In total, 53 members of staff were employed in Germany and 60 in Spain.
The portfolio of UNITEDLABELS AG currently encompasses 40 merchandise licences, all of which are in high demand. Among the new licences are "Mia and me", "Turtles", who are celebrating their comeback this year, "The Lord of the Rings" as well as "Mike der Ritter". The licence agreements for classics such as "Simpsons", "Bob the Builder" and "Thomas the Tank Engine" were extended. New product lines are currently being developed or manufactured from these and other licence themes.
The 13th Annual General Meeting of UNITEDLABELS AG has been scheduled for Thursday, 23 May 2013, at 11 a.m. at Halle Münsterland in Münster.
On 30 April the "procédure de sauvegarde", a debtor safeguard procedure under French law, in respect of the French entity Embassy SAS, in which UNITEDLABELS AG holds an indirect interest of 45% via Groupe Montesquieu, came to an end. Insolvency proceedings governed by French law have now commenced. The insolvency administrator has been given until 25 June to find a buyer for the aforementioned entity.
As at 31 March 2013, UNITEDLABELS AG had a total of 4.2 million no-par-value shares. As at 31 March 2013, the Management Board as well as the members of the Supervisory Board of UNITEDLABELS AG held the following shares and options:
Peter Boder, CEO, held 63% of the shares. Management Board member Albert Hirsch as well as the Chairman of the Supervisory Board Gert-Maria Freimuth each held less than 1% of the shares. Supervisory Board members Frank Rohmann and Otte E. Umbach held no shares. As at 31 March 2013, no options had been granted and no valid share option plan was in place.
In order to ensure that UNITEDLABELS can continue to position itself favourably within the European sales region and capture an additional share of the market against the backdrop of a sluggish economy, the focus for the current financial year will again be centred on safe, high-quality products tailored to consumer demand. Additionally, our aim is to expand the company's customer base in the Key Account segment in particular, with the express purpose of maintaining a low level of dependence on specific customers.
In response to the exceptional factors influencing business performance in the last financial year, UNITEDLABELS initiated stringent optimisation measures that are to bring about cost savings of €3.0 million per annum in 2013 and 2014. Our latest quarterly results already bear testimony to the success of this programme. These cuts are necessary so that UNITEDLABELS AG can return to profitable growth in the near future.
In addition to concentrating on large-account business relating to textile products that generate higher margins, expanding the area of NOS giftware in Germany and abroad and optimising its airport shops, UNITEDLABELS will be looking to expand its new e-commerce business via its newly established subsidiary Elfen Service GmbH.
After fast-track planning and development, the new internet platform Elfen.de was launched in October 2012. This unique service combines the business interests of manufacturers, retailers and licence, media and brand partners as well as end-consumers and brings them together within an online environment. The new online shop already offers around 100,000 items supplied by more than 90 manufacturers of branded goods. This is complemented by the complete range of products supplied by the parent company within the specialty retail category. Therefore, the platform offers consumers an extensive, high-impact portfolio of merchandise with cooperation partners from various segments of the market. Further fundamental projects within this area are to be implemented in the second quarter of 2013.
1 January to 31 March 2013
(unaudited)
| 01/01/2013 31/03/2013 |
01/01/2012 31/03/2012 |
01/01/2013 31/03/2013 |
01/01/2012 31/03/2012 |
|||||
|---|---|---|---|---|---|---|---|---|
| € | % | € | % | € | % | € | ||
| Sales revenues | 5,663,058.15 | 100.0% | 11,450,738.36 | 100.0% | 5,663,058.15 | 100.0% | 11,450,738.36 | |
| Cost of materials | -3,296,353.49 | -58.2% | -7,638,255.05 | -66.7% | -3,296,353.49 | -58.2% | -7,638,255.05 | |
| Amortisantion of usufructuary rights | -447,726.52 | -7.9% | -662,854.77 | -5.8% | -447,726.52 | -7.9% | -662,854.77 | |
| 1,918,978.14 | 33.9% | 3,149,628.54 | 27.5% | 1,918,978.14 | 33.9% | 3,149,628.54 | ||
| Other operating income | 414,409.44 | 7.3% | 114,144.84 | 1.0% | 414,409.44 | -7.3% | 114,144.84 | |
| Staff costs | -1,285,592.85 | -22.7% | -1,556,269.20 | -13.6% | -1,285,592.85 | -22.7% | -1,556,269.20 | |
| Depreciation of property plant and equip ment and amortisation of intangible assets (excl. amortisation of usufructuary rights) |
-155,201.85 | -2.7% | -182,328.83 | -1.6% | -155,201.85 | -2.7% | -182,328.83 | |
| Other operating expenses | -1,036,696.76 | -18.3% | -1,675,118.44 | -14.6% | -1,036,696.76 | -18.3% | -1,675,118.44 | |
| Profit from operations | -144,103.88 | -2.5% | -149,943.09 | -1.3% | -144,103.88 | -2.5% | -149,943.09 | |
| Finance income | 816.06 | 0.0% | 25,681.45 | 0.2% | 816.06 | 0.0% | 25,681.45 | |
| Result from at-equity investments | 101,242.04 | 1.8% | 161,412.80 | 1.4% | 101,242.04 | 1.8% | 161,412.80 | |
| Finance cost | -205,390.82 | -3.6% | -295,988.80 | -2.6% | -205,390.82 | -3.6% | -295,988.80 | |
| Net finance cost | -103,332.72 | -1.8% | -108,894.55 | -1.0% | -103,332.72 | -1.8% | -108,894.55 | |
| Profit before tax | -247,436.60 | -4.4% | -258,837.64 | -2.3% | -247,436.60 | -4.4% | -258,837.64 | |
| Taxes on income | -772.57 | 0.0% | -40,519.07 | -0.4% | -772.57 | 0.0% | -40,519.07 | |
| Consolidated net profit/(loss) | -248,209.17 | -4.4% | -299,356.71 | -2.6% | -248,209.17 | -4.4% | -299,356.71 | |
| Loss for the period attributable to owners of parent |
-208,012.58 | -3.7% | -687,026.98 | -2.6% | -208,012.58 | -3.7% | -687,026.98 | |
| Loss for the period attributable to non controlling interests |
-40,196.60 | -0.7% | -16,945.94 | 0.0% | -40,196.60 | -0.7% | -16,945.94 | |
| Other comprehensive income | ||||||||
| Currency translation | 111,783.93 | -13,630.70 | 111,783.93 | -13,630.70 | ||||
| Other comprehensive income. total | 111,783.93 | -13,630.70 | 111,783.93 | -13,630.70 | ||||
| Total comprehensive income | -136,425.24 | -312,987.41 | -136,425.24 | -312,987.41 | ||||
| Consolidated earnings per share | ||||||||
| basic | -0.05 € | -0.07 € | -0.05 € | -0.07 € | ||||
| diluted | -0.05 € | -0.07 € | -0.05 € | -0.07 € | ||||
| Weighted average shares outstanding | ||||||||
| basic | 4,153,801 shares | 4,153,801 shares | 4,153,801 shares | 4,153,801 shares | ||||
| diluted | 4,153,801 shares | 4,153,801 shares | 4,153,801 shares | 4,153,801 shares |
(unaudited)
| 03.2013 T€ |
03.2012 T€ |
|
|---|---|---|
| Consolidated loss for the year | -248 | -299 |
| Interest income from financing activities | 205 | 270 |
| Amortisation of usufructuary rights | 448 | 663 |
| Depreciation of property. plant and equipment. intangible assets an usufructual rights | 155 | 182 |
| Change in provisions | -171 | -364 |
| Other non-cash expenses | -583 | -121 |
| Change in inventories. trade receivables. and other assets not attributable to investing or financing activities |
1,740 | 2,070 |
| Change in trade payables and other liabilities not attributable to investing or financing activities |
-734 | -2.957 |
| Payments for tax on profit | -68 | 0 |
| Cash flows from operating activities | 744 | -556 |
| Payments for investments in non-current assets | -944 | -331 |
| Cash flows from investing activities | -944 | -331 |
| Proceeds from the disposal of non-controlling interests in fully consolidated entities | 0 | 10 |
| Proceeds from bank loans | -530 | 279 |
| Repayment of financial loans | -61 | -92 |
| Interest received | 1 | 26 |
| Interest paid | -205 | -296 |
| Cash flows from financing activities | -795 | -73 |
| Net change in cash and cash equivalents | -996 | -960 |
| Currency translation | 112 | -14 |
| Cash and cash equivalents at the beginning of the period | 1,640 | 1,570 |
| Cash and cash equivalents | 756 | 596 |
| Gross debt bank | 9,774 | 10,458 |
| Net debt bank | 9,018 | 9,862 |
| Composition of cash and cash equivalents: Cash and cash equivalents |
756 | 596 |
Group Statement of Financial Position (IFRS) as at 31 March 2013 (unaudited)
ASSETS
| Assets | 31/03/2013 € |
31/12/2012 € |
|---|---|---|
| Non-current assets | ||
| Property. plant and equipment | 5,446,913.91 | 5,560,402.24 |
| Intangible assets | 9,721,207.35 | 8,821,348.18 |
| At-equity investments | 113,361.66 | 15,846.95 |
| Other assets | 1,100,598.25 | 1,100,598.25 |
| Deferred taxes | 2,473,848.45 | 2,473,848.45 |
| 18,855,929.61 | 17,972,044.07 | |
| Current assets | ||
| Inventories | 4,279,885.81 | 4,759,531.57 |
| Trade and other receivables | 4,801,366.93 | 6,279,629.67 |
| Other assets | 836,808.66 | 619,271.03 |
| Cash and cash equivalents | 755,809.47 | 1,640,002.04 |
| 10,673,870.88 | 13,298,434.31 | |
UNITEDLABELS Aktiengesellschaft, Münster
Group Statement of Financial Position (IFRS) as at 31 March 2013 (unaudited)
| Equity | 31/03/2013 € |
31/12/2012 € |
|---|---|---|
| Capital and reserves attributable to the owners of the parent company |
||
| Issued capital | 4,200,000.00 | 4,200,000.00 |
| Capital reserves | 3,352,705.65 | 3,352,705.65 |
| Retained earnings | 2,883,209.63 | 2,883,209.63 |
| Currency translation | -459,631.60 | -571,415.53 |
| Consolidated unappropriated surplus | -3,557,658.92 | -3,309,449.74 |
| Treasury shares | -223,413.73 | -223,413.73 |
| Equity attributable to owners of parent | 6,195,211.03 | 6,331,636.28 |
| Non-controlling interests | -142,961.80 | -102,765.20 |
| Total equity | 6,052,249.23 | 6,228,871.08 |
| Non-current liabilities | ||
| Provisions for pensions | 1,357,496.00 | 1,357,496.00 |
| Financial liabilities | 2,465,411.20 | 2,465,411.20 |
| Provisions | 763,260.62 | 979,667.62 |
| Trade payables | 2,781,562.08 | 2,781,562.08 |
| Deferred tax liabilities | 53.43 | 53.43 |
| 7,367,783.33 | 7,584,190.33 | |
| Current liabilities | ||
| Provisions | 292,091.87 | 247,110.61 |
| Current tax payable | 11,276.02 | 79,744.53 |
| Financial liabilities | 7,308,795.33 | 7,899,440.48 |
| Trade and other payables | 8,497,604.71 | 9,231,121.35 |
| 16,109,767.94 | 17,457,416.98 | |
| Total liabilities | 23,477,551.27 | 25,041,607.31 |
| Total equity and liabilities | 29,529,800.49 | 31,270,478.38 |
(unaudited)
| Subscribed capital € '000 |
Capital reserves € '000 |
Revenue reserves € '000 |
Translation reserve € '000 |
Treasury shares € '000 |
Equity at tributable to owners of parent € '000 |
Reconciling item for non controlling interests € '000 |
Total € '000 |
|
|---|---|---|---|---|---|---|---|---|
| Balance at 01/01/2012 | 4,200 | 19,194 | 5,860 | -507 | -223 | 28,524 | 0 | 28,524 |
| Correction | 0 | 0 | -3,589 | 0 | 0 | -3,589 | 0 | -3,589 |
| Balance at 01/01/2012 changed |
4,200 | 19,194 | 2,271 | -507 | -223 | 24,935 | 0 | 24,935 |
| Currency translation | 0 | 0 | 0 | -14 | 0 | -14 | 0 | -14 |
| Consolidated loss Q I 2012 | 0 | 0 | -299 | 0 | 0 | -299 | 0 | -299 |
| Total comprehensive income for the period |
0 | 0 | -299 | -14 | 0 | -313 | 0 | -313 |
| Balance at 31/03/2012 changed |
4,200 | 19,194 | 1,972 | -521 | -223 | 24,622 | 0 | 24,622 |
| Consolidated loss 2012 | 0 | 0 | -18,540 | 0 | 0 | -18,540 | -112 | -18,652 |
| Currency translation | 0 | 0 | 0 | -64 | 0 | -64 | 0 | -64 |
| Total comprehensive income 2012 | 0 | 0 | -18,540 | -64 | 0 | -18,604 | -112 | -18,716 |
| Compensation paid by dissolution/ with drawal from reserves |
0 | -15,841 | 15,841 | 0 | 0 | 0 | 0 | 0 |
| Transaktions with owners | ||||||||
| Sale of minority shares | 0 | 0 | 1 | 0 | 0 | 1 | 9 | 10 |
| Balance at 31/12/2012 | 4,200 | 3,353 | -427 | -571 | -223 | 6,332 | -103 | 6,229 |
| Currency translation | 0 | 0 | 0 | 112 | 0 | 112 | 0 | 112 |
| Consolidated loss Q1 2013 | 0 | 0 | -249 | 0 | 0 | -249 | -40 | -289 |
| Total comprehensive loss for the period |
0 | 0 | -249 | 112 | 0 | -137 | -40 | -177 |
| Balance at 31/03/2013 | 4,200 | 3,353 | -676 | -459 | -223 | 6,195 | -143 | 6,052 |
Gildenstraße 6 48157 Münster Germany phone: +49 (0) 251 - 3 22 10 fax: +49 (0) 251 - 3 22 19 99 [email protected] www.unitedlabels.com
Pol. Ind. Fontsana 08970 Sant Joan Despi Barcelona, Spain phone: +34 (0) 93 - 4 77 13 63 fax: +34 (0) 93 - 4 77 32 60 [email protected]
UNITEDLABELS Belgium N.V. Residentie Stockhouderskasteel Gerard Davidstraat 50 bus 0002 8000 Brugge Belgium phone: +32 (0) 50 - 45 69 60 fax: +32 (0) 50 - 31 28 22 [email protected]
UNITEDLABELS Polska Sp.o.o ul. Sienna 39 00 - 121 Warszawa Poland phone: +49 (0) 251- 32 21- 0 fax: +49 (0) 251- 32 21- 999 [email protected]
House of Trends europe GmbH Gildenstraße 6 48157 Münster Deutschland Telefon: +49 (0) 251 - 32 21- 0 Telefax: +49 (0) 251- 32 21- 999 [email protected]
Open Mark United Labels GmbH Gildenstraße 6 48157 Münster Deutschland Telefon: +49 (0) 251- 32 21- 0 Telefax: +49 (0) 251- 32 21- 999
Elfen Service GmbH Münsterstraße 111 48155 Münster Deutschland Telefon: +49 (0) 2506- 30 01 1- 0 Telefax: +49 (0) 2506- 30 01 1- 690
If you require further information on UNITEDLABELS or its financial results, please contact us under:
+49 (0) 2 51 - 32 21 - 0 +49 (0) 2 51 - 32 21 - 999
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