United Labels AG

Earnings Release • Nov 8, 2001

News Details

Ad-hoc | 8 November 2001 08:00

United Labels AG english

UNITEDLABELS AG Results impacted by tentative consumer spending Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– – Results for the first nine months below target – Adjustments to revenue and earnings estimates due to strained economic climate – Solid growth expected for 2002 In the first nine months of fiscal 2001, UNITEDLABELS AG achieved a year-on-year revenue increase of 41%, taking the figure from EUR15.6 million to EUR22.0 million. At the end of Q3, earnings before interest and taxes (EBIT) stood at EUR-9.3 million. This is mainly due to a lower gross margin and revenues that fell short of expectations, while fixed costs remained unchanged. One-off influences, such as the aggressive pricing policy of key accounts and adjustments of EUR2.3 million with regard to inventory valuations, had a major effect on performance. In view of the current economic climate and the continued restraint among consumers, the targets for fiscal 2001 will be met. UNITEDLABELS AG expects to post revenues of approximately EUR32 million and earnings before interest and taxes of around EUR -9 million for the full fiscal year. The cost-reduction programme already initiated during the financial year will be complemented by further restructuring measures aimed at achieving a substantial reduction in costs. At the end of the quarter, the company had at its disposal cash and cash equivalents of EUR4.1 million. In the 2002 financial year, UNITEDLABELS AG expects to achieve solid revenue growth of around 20% and a positive EBIT margin. The full quarterly report will be published on 13 November 2001. For further information, please visit http://www.unitedlabels.com, or contact one of the following members of staff: Albrecht Hanusch (CFO) Katarina Orlovic (IR) Tel.: +49 (0)251-3221-400 Tel.: +49 (0) 251-3221-406 Fax: +49 (0)251-3221-900 Fax: +49 (0) 251-3221-960 ahanusch@unitedlabels.com korlovic@unitedlabels.com end of ad-hoc-announcement (c)DGAP 08.11.2001 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: In the first nine months of fiscal 2001 UNITEDLABELS AG, a specialist for comicware sold under licence, achieved a year-on-year revenue increase of 41%, taking the figure from EUR15.6 million to EUR22.0 million. At the end of Q3, earnings before interest and taxes (EBIT) stood at EUR-9.3 million. Based on the trend witnessed in the third quarter, the company will not be able to meet the original targets set for the full fiscal year 2001. The Münster- based company expects to generate a total of ca. EUR32 million in revenues for the full fiscal year, with EBIT weighing in at EUR-9 million. Tentative consumer spending as a result of the gen-eral economic malaise meant that the level of incoming orders for the 2001 pre-Christmas season fell short of expectations. In the past, this period of the year had made up more than 40% of the company’s overall sales. The above-mentioned development was witnessed not only in terms of the company’s high-margin activities with specialist vendors but also with regard to its large-scale business dealings with major retail chains. Both the domestic market and pan-European operations have been impacted by the current trading environment. Particularly the French and Spanish markets, which have traditionally been extremely buoyant within the area of comicware sold under licence, have been hit by the unfavourable economic climate. In view of the fact that the entire cost structure had been geared towards strong growth, the company’s lower sales revenues resulted in a deficient cover of fixed costs. Moreover, an aggressive pricing policy introduced in order to attract new customers and to accelerate growth led to a lower gross margin. Restructuring measures to bolster earnings already initiated In view of the current market conditions, the Management Board of UNITEDLABELS AG has initiated additional restructuring measures aimed at reining back operating expenses. “Experiences within the last few weeks have prompted us to react immediately and to put into place corrective measures that will lead to visible results as early as the next quarter,” said Chairman of the Management Board and founder of the company Peter M. Boder. For the coming financial year 2002, UNITEDLABELS AG anticipates solid revenue growth of around 20% and a positive EBIT margin. Outlook 2002 Despite the increasingly tight trading environment within Europe, comicware products sold under licence remain an extremely popular and viable market segment. Having attracted additional groups of customers and retail partners, UNITEDLABELS has fresh impetus when it comes to leading the company into a new business year. “I am confident that this year’s investments will bear fruit in 2002,” emphasized Mr. Boder. ——————————————————————————– WKN: 548956; Index: Listed: Neuer Markt in Frankfurt; Freiverkehr in Stuttgart, München, Berlin, Bremen, Hamburg, Düsseldorf und Hannover 080800 Nov 01