United Labels AG

Earnings Release • Mar 31, 2003

News Details

Ad-hoc | 31 March 2003 07:33

United Labels AG english

UNITEDLABELS back in the fast lane Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– UNITEDLABELS back in the fast lane – Year-on-year increase in revenues – Profitability back on track – Substantial increase in gross profit ratio (Münster, March 31, 2003) – UNITEDLABELS AG (DE 0005489561), an enterprise specialising in comicware sold under licence, increased consolidated revenues by 6% to EUR 34.7 million in the financial year 2002 (FY 2001: EUR 32.8 million). Earnings before interest and taxes (EBIT) amounted to EUR 0.1 million (FY 2001: loss of EUR 8.9 million), an improvement of EUR 9.0 million. The net loss for the 2002 financial year was EUR 1.1 million (FY 2001: net loss of EUR 5.8 million). This is mainly attributable to the reversal of deferred taxes of EUR 0.7 million recognised in the previous financial year. The financial year 2002 was dominated by incisive measures aimed at streamlining the group structure as well as the implementation of a three-step cost reduction programme. Together, these efforts contributed towards enhancing the company’s performance in 2002. The gross profit ratio increased substantially from 19% in 2001 to 36% in the 2002 financial year. The company also recorded solid revenue growth. Cash flow improved year on year by EUR 7.8 million, taking the overall figure to minus EUR 1.1 million at the end of the year (FY 2001: minus EUR 8.9 million). The net outflow was mainly the result of higher prepayments for licences. UNITEDLABELS has utilised funds in its revenue reserves to offset its accumulated loss. As a result, the company will be able to consider a possible dividend payment in future. UNITEDLABELS expects to achieve positive cash flow in the current financial year. Committed to fast-track expansion and supported by a new portfolio of products and licences, the company also expects to generate an 8% increase in revenues. For further information and a full copy of the audited financial statements, please visit www.unitedlabels.com or contact the following member of staff: UNITEDLABELS AG Katarina Orlovic (Investor & Public Relations) Gildenstr. 6, D – 48157 Münster Tel.: +49 (0) 251-3221-406, Fax: +49 (0) 251-3221-960 Mobile: +49 (0) 160 7245170 e-mail: korlovic@unitedlabels.com end of ad-hoc-announcement (c)DGAP 31.03.2003 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: UNITEDLABELS AG back in the fast lane: financial results for 2002 – Year-on-year revenue increase of 6% – Lead in Europe extended – Audited results for FY 2002 (Münster, March 31, 2003) – UNITEDLABELS AG (DE 0005489561), an enterprise specialising in comicware sold under licence, increased consolidated revenues by 6% to EUR 34.7 million in the financial year 2002 (FY 2001: EUR 32.8 million). Earnings before interest and taxes (EBIT) amounted to EUR 0.1 million (FY 2001: loss of EUR 8.9 million), an improvement of EUR 9.0 million. The net loss for the 2002 financial year was EUR 1.1 million (FY 2001: net loss of EUR 5.8 million). This was mainly attributable to the reversal of deferred taxes of EUR 0.7 million recognised in the previous financial year. The financial year 2002 was dominated by incisive measures aimed at streamlining the group’s structure, as well as the implementation of a three-step cost reduction programme. Together, these efforts contributed towards enhancing the company’s performance in 2002. The gross profit ratio increased substantially from 19% in 2001 to 36% in the 2002 financial year. The company also recorded solid revenue growth. Cash flow improved year on year by EUR 7.8 million, taking the overall figure to minus EUR 1.1 million at the end of the year (FY 2001: minus EUR 8.9 million). The net outflow was mainly the result of higher prepayments for licences. UNITEDLABELS expects to achieve positive cash flow in the current financial year. UNITEDLABELS utilised funds in its revenue reserves to offset its accumulated loss. As a result, the company will be able to consider a possible dividend payment in the future. “Based on our latest financial performance, there can be little doubt that we have succeeded in steering UNITEDLABELS AG back into the fast lane,” said CEO Peter M. Boder. Lead in Europe extended – Despite sluggish consumer markets throughout the European Union, demand for comicware remained buoyant. UNITEDLABELS was able to extend its position as a leading supplier to specialist retailers and large- scale wholesale operators. Within UNITEDLABELS AG the proportion of exports increased substantially, rising from 58% in 2001 to 65% in the financial year just ended. The company’s development in 2002 was dominated by two aspects: On the one hand, UNITEDLABELS benefited from its close rapport with retail and wholesale customers, and on the other hand the company’s newly introduced display systems for retail promotions produced the desired results at the point of sale. The consistent product and pricing structure introduced throughout the group in the financial year just ended also contributed to the pan-European success of UNITEDLABELS. “International brand awareness as regards licensed merchandise, complemented by a very impressive distribution network, is to be seen as a solid foundation for us to maintain and extend our lead in Europe,” said Boder. Strong market potential through specialised licensin – Worldwide sales of products sold under licence are estimated to be worth approx. EUR 200 billion. According to the latest studies, the proportion of sales generated in the German-speaking region weighs in at EUR 24.4 billion. Licence themes within the category of movie and TV characters account for roughly EUR 7 billion and are thus considered to be the undisputed champions in this sector. The business model of UNITEDLABELS focuses precisely on the above-mentioned category, harnessing the power of the world’s best-known and most profitable cartoon characters. The licence market was not dominated by a particular trend or theme in 2002. In fact, the industry reverted to existing themes, with the express purpose of counteracting the trends witnessed in the past two years. Movie- related licences have proved to be ephemeral. In contrast, the stable growth rates registered within the area of traditional cartoon themes – the focus of UNITEDLABELS AG’s business model – attest to the success of classic hits and heroes in the world of merchandising. In 2003, two of these classic heroes will be stealing the limelight: “Sesame Street” has just turned 30, and Garfield, the lazy tomcat, is the ripe old age of 25. Working in close cooperation with licensers and retail partners, UNITEDLABELS AG will be celebrating these birthdays with a number of special events. As CEO Boder explains, “Our concerted efforts within this area bear testimony to the long-standing relationships we have established with our licence partners.” Another exclusive highlight presented by UNITEDLABELS AG in ten European countries in 2003: “The Simpsons” in a unique cuddly-toy collector’s edition. This new product offering was developed by Matt Groening, the “father” of The Simpsons. The first collection was showcased at several trade shows at the beginning of 2003, with great success. The remaining members of the “yellow family”, together with other famous inhabitant’s of Springfield, will be available in specialist shops later in the year. “Snuffles” – first proprietary licence now available – The “in-house production” recently announced by the company will be taken one step further in 2003. The first proprietary licence created by UNITEDLABELS is known as “Snuffles”. The rationale behind this newest product offering is to gain rapid access to the lucrative soft toy market. The range includes a number of cuddly animals that almost feel and look real. The first collection is centred around adorable young puppies, and other cuties are already in the pipeline. New faces at UNITEDLABELS – Berthold Lipp, 38, was appointed head of Special Retail Europe, effective from March 1, 2003. Prior to joining the UNITEDLABELS Group, Lipp was District Sales Director South at Ravensburger Spiele Verlag GmbH, a well-known manufacturer of games. Lipp will be focusing on accelerating the company’s activities in the fast-track field of specialist retailing, particularly when it comes to expansion within the international arena. For further information, please visit www.unitedlabels.com or contact: Katarina Orlovic (Investor & Public Relations) Tel.: +49 (0) 251-3221-406 Fax: -960 korlovic@unitedlabels.com ——————————————————————————– WKN: 548956; ISIN: DE0005489561; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 310733 Mär 03