Quarterly Report • May 15, 2009
Quarterly Report
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"Developments during the first quarter show that despite a continued weak and uncertain market we see interest in the brand. At the same time we were positively affected by strong currency effects this quarter. In the strategic review we conducted this spring, we saw strong opportunities for our new vision: 'to become the champion of fashion underwear.' We will achieve this by being creative and innovative in terms of our range of underwear, but also by contributing to the profitability for our distributors and retailers," says President Arthur Engel.
| SEK million | January-March 2009 |
January-March 2008 |
April 2008- March 2009 |
Full-year 2008 |
|---|---|---|---|---|
| Brand sales* | 602 | 551 | 2,022 | 1,971 |
| Net sales | 164.7 | 138.7 | 552.5 | 526.6 |
| Gross profit margin, % | 49.3 | 51.9 | 53.0 | 53.8 |
| Operating profit | 37.6 | 36.5 | 129.8 | 128.8 |
| Operating margin, % | 22.8 | 26.3 | 23.5 | 24.5 |
| Profit after tax | 28.9 | 26.8 | 101.3 | 99.2 |
| Earnings per share, SEK** | 1.15 | 1.07 | 4.05 | 3.96 |
| Earnings per share after dilution, SEK*** | 1.15 | 1.07 | 4.05 | 3.96 |
*Reported as of Q1 2009 as estimated total sales of Björn Borg products at the consumer level, excluding VAT, based on reported wholesale sales.
The first quarter produced positive figures for brand sales as well as consolidated sales and profit. At the same time we continue to face very tough and uncertain market conditions, which are affecting us as well, especially in our large, established markets. Our newer markets, which are in the establishment stage, reported continued growth, though still from low levels.
The increase in consolidated sales during the quarter was due to higher sales, primarily in the footwear product area, but also was affected by strong currency effects which we do not expect to continue during the remainder of the year. Operating profit rose slightly, but was charged according to plan with higher expenses related to aggressive marketing efforts, primarily in the U.S., and changes in the organization to meet future requirements and growth.
In the strategic review we conducted this spring, we turned our attention from the current market situation to analyze Björn Borg's long-term potential and how we will navigate going forward. Our vision is that Björn Borg will be "the champion of fashion underwear." This may not sound new, but for us it represents a shift from a broader fashion focus to a targeted emphasis on an area where we have the biggest potential to be a market leader – creativity and innovative thinking in underwear. This means more, and more structured, investments in product development with the right approach and competence, and that we will create a culture where we work every day to challenge the market, surprise and exceed customers' expectations.
Today our new business area manager for underwear, Malin Wåhlstedt, takes over. She worked most recently with H&M, where she gained extensive experience in the underwear segment. We will continue to strengthen and shape the organization in line with our strategy. Underwear will remain the Group's largest and most important business area. In addition, we have separate business areas for adjacent products, such as swimwear, socks and a small apparel line, for footwear and licensed products.
We will maintain the same fast pace in our international expansion, but with clearer criteria and demands on our distributors and markets. E-commerce will become an increasingly important channel. We have already begun to develop a new, innovative environment for brand stores and shop-in-shops internationally – an important piece of the puzzle to build the brand and show what it stands for, especially in new markets. At the same time, we will maintain and further develop our business model, with costeffective expansion through outside distributors.
Implementation of the new strategic focus will begin during the second quarter.
Arthur Engel President
As of the first quarter 2009, brand sales are defined as sales of Björn Borg products at the consumer level, excluding VAT (previously including VAT), based on reported wholesale sales. During the first quarter brand sales amounted to SEK 602 million (551), an increase of 9 percent compared with the same quarter of 2008.
Brand sales in the underwear product area increased by almost 4 percent during the first quarter compared with the same quarter last year. Sales in the footwear product area jumped by more than 80 percent during the first quarter, largely due to higher exports to the Netherlands, who introduced shoes during 2008.
Adjacent products experienced increased brandsales of approximately 4 percent during the quarter, while brand sales for licensees decreased by approximately 11 percent, largely due to postponed deliveries.
Brand sales in new markets continued to rise, where the development in England is particularly gratifying. The established markets reported a weaker development. Brand sales rose slightly in the Netherlands compared with the same quarter of 2008, fully referable to growth in sales of footwear. The negative development in Norway turned positive during the first quarter of 2009, while Sweden and Denmark showed decreased sales.
No new Björn Borg stores were opened during the first quarter 2009. At the end of the period there were 44 (36) Björn Borg stores, of which 11 (10) were Group-owned.
* Estimated total sales of Björn Borg products at the consumer level, excluding VAT, based on reported wholesale sales. ** Underwear: Men's and women's underwear; Complementary products: Men's clothing, swimwear and socks; Licensees: Bags, fragrances,
eyewear and women's clothing in the Netherlands.
Sales increased during the first quarter with slightly higher operating profit.
Group sales during the first quarter amounted to SEK 164.7 million (138.7), an increase of 19 percent, due in its entirety to higher export sales in the footwear product area and the positive effect of a higher U.S. dollar.
The gross profit margin decreased during the first quarter to 49.3 percent (51.9), largely due to the higher U.S. dollar, but also the larger share of the cost of goods sold represented by the footwear product area.
Operating profit amounted to SEK 37.6 million (36.5) during the quarter, with an operating margin of 22.8 percent (26.3). Profit before tax increased during the period to SEK 39.2 million (37.3).
The increase in operating profit compared with the same quarter of 2008 was mainly due to higher sales. Profit was affected by additional costs, compared to corresponding period last year, referable to marketing investments in the U.S. and organizational changes to accommodate a further expansion.
The higher U.S. dollar slightly affected the Group's operating profit positively.
The Group comprises a number of companies that operate under the Björn Borg brand on every level, from product development to distribution and consumer sales in its own concept stores.
Sales in the Brand and other segment primarily consist of royalty revenue, sales of services within the Björn Borg network and intra-Group services.
Net sales during the period reached SEK 43.8 million (31.0), an increase of 41 percent, mainly due to increased internal sales and increased brand sales.
Operating profit amounted to SEK 17.3 million (13.1) for the period. Profit was affected positively by higher sales in the network, but negatively by increased marketing expenses.
The Group has global responsibility for development, design and production of underwear, adjacent products and footwear. A licensee for clothing operates in the Benelux market.
The segment's net sales amounted to SEK 109.9 million (75.9) for the period, an increase of 45 percent. The increase was primarily due to substantially higher footwear exports by the footwear product area, mainly to the Netherlands, but also the higher U.S. dollar. Earlier deliveries to the Swedish distributor also affected sales positively.
Operating profit increased to SEK 18.7 million (8.9) as a result of the increased exports and higher U.S. dollar.
The Björn Borg Group is the exclusive distributor in the underwear, adjacent products and footwear product areas in the Swedish and US markets.
Net sales in the Distribution segment rose to SEK 59.4 million (58.7) during the period, or by 1 percent. Growth was mainly due to higher footwear sales.
Operating profit decreased to SEK 2.5 million (14.8), mainly due to the stronger U.S. dollar, which affected gross profit negatively, but also to marketing investments in the U.S.
The Björn Borg Group owns and operates nine stores in the Swedish market that sell underwear, adjacent products, footwear and licensed products. Moreover, Björn Borg operates two factory outlets.
Net sales in the Retail segment amounted to SEK 11.9 million (11.1) for the period, an increase of 7 percent. For comparable stores, sales increased by 5 percent during the first quarter. The operating loss amounted to SEK –0.9 million (–0.3). Sales were affected positively by a higher share of discount sales compared with the same period last year, which also led to lower gross profit.
Intra-Group sales amounted to SEK 60.4 million (38.0) during the period.
| Operating area | Revenue source | Jan-March 2009 Sales, SEK thousands |
Jan-March 2009 Operating profit, SEK thousands |
Jan-March 2009 Operating margin |
|---|---|---|---|---|
| Brand and other | Royalties and services | 43,776 | 17,275 | 39% |
| Product development | Products | 109,942 | 18,719 | 17% |
| Distribution | Wholesale sales | 59,421 | 2,461 | 4% |
| Retail | Retailers | 11,887 | –873 | –7% |
| Less internal sales | –60,352 | - | - | |
| Total | 164,674 | 37,582 | 23% |
The Björn Borg Group is active in an industry with seasonal variations. Sales and earnings vary by quarter. With the current product mix, the second quarter is generally the weakest in terms of profit. See the figure on quarterly net sales and operating profit on page 3.
Cash flow from operating activities in the Group amounted to SEK 12.8 million (19.4) for the first quarter 2009. The change in working capital was mainly due to increases in accounts receivable and inventories. The increase in accounts receivable related to the higher sales, while the increase in inventories was due to earlier deliveries of the summer collection from suppliers.
Total investments in tangible and intangible non-current assets amounted to SEK 1.5 million (0.4) for the period, the large part of which was attributable to a new enterprise system.
The increase in cash & cash equivalents amounted to SEK 11.3 million (18.9) for the first quarter 2009.
The Björn Borg Group's cash & cash equivalents (net cash position) amounted to SEK 252.8 million (206.3) at the end of the period. In addition, the Group has unutilized bank overdraft facilities of SEK 117.5 million. The equity/assets ratio was 70.0 percent (69.0). The company has no interest bearing liabilities.
No changes were made with regard to pledged assets and contingent liabilities compared with December 31, 2008. For further information, see note 22 on page 44 of the annual report 2008.
The average number of employees in the Group for the period January–March was 91 (86), of whom 57 were women.
There were no significant events to report following the conclusion of the report period.
The Annual General Meeting of Björn Borg AB was held at 5 pm (CET) on April 23, 2009 in Stockholm. The meeting resolved to pay a dividend of SEK 1.50 (1.50) per share to shareholders for the year 2008. Fredrik Lövstedt, Mats H Nilsson, Vilhelm Schottenius, Michael Storåkers and Nils Vinberg were re-elected to the Board of Directors, with Fredrik Lövstedt as Chairman of the Board. Monika Elling and Fabian Månsson were elected as new Directors.
In accordance to the Board of Directors' proposal, the Annual General Meeting authorized the Board of Directors, until the next Annual General Meeting, to resolve to issue new shares, warrants or convertibles on one or more occasions, with or without deviating from shareholders' preferential rights. The number of shares will increase in total by not more than 1,250,000.
The Board of Directors was authorized, until the next Annual General Meeting, to resolve to acquire and transfer the company's own shares on one or more occasions, to the extent that the company's shareholding after such acquisitions does not exceed ten percent of all the shares in the company. Further, the Meeting authorized the Board of Directors, until the next Annual General Meeting, to resolve to transfer shares in the company to third parties on one or more occasions. Transfers are limited to the total number of shares held by the company at any given time.
The Meeting adopted the Board of Directors' proposal regarding compensation guidelines for senior executives, i.e., the President and other members of Senior Management.
The Meeting adopted the Board's proposal to amend the articles of association regarding the method used and notice period to convene general meetings. The amendment is conditional on the amendments to the Swedish Companies Act regarding the notice period and methods used to convene general meetings entering into force. It was further resolved to change the objective clause in the articles of association to better adjust to the concept and the operation of the business.
Björn Borg AB (publ) is primarily engaged in intra-Group activities. In addition, the Parent Company owns 100 percent of the shares in Björn Borg Brands AB and Björn Borg Footwear Holding AB.
The Parent Company's net sales for the first quarter amounted to SEK 14.0 million (7.6). The loss before tax amounted to SEK –4.1 million (–5.1) for the first quarter. Cash & cash equivalents amounted to SEK 176.8 million (11.1) on March 31. For the period investments in tangible and intangible non-current assets amounted to SEK 0.9 million (0.2).
In its operations, the Björn Borg Group is exposed to risks and uncertainties. For further information, refer to pages 29–30 of the annual report 2008.
During the period transactions were executed on market terms with Klockaren Fastighetsförvaltning i Varberg AB. For more detailed information, see note 11 on page 42 of the annual report 2008.
This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. The same accounting principles were applied during the period as in 2008, as described on pages 36– 38 of the latest annual report, with the exceptions indicated below.
IAS 1 (Revised) Presentation of Financial Statements is effective January 1, 2009. The revised standard has affected the recognition of translation adjustments for foreign operations retroactively to December 31, 2008. These revenues and expenses were previously recognized directly in equity, but are now reported in a separate statement directly after the income statement. Another revision is the new terminology used in the financial reports. As of January 1, 2009 a new standard, IFRS 8 Operating Segments, takes effect. IFRS 8 is a disclosure standard and does not impact the Group's statement of comprehensive income, financial position, cash flow and changes in equity. The operating segments are unchanged compared with the latest annual report. None of the other new or amended standards and interpretations from IFRIC has had a significant impact on the financial position or results of the Group or the Parent Company.
As a policy, the company does not issue earnings forecasts.
This interim report has not been reviewed by the company's sauditors.
| Condensed | ||||
|---|---|---|---|---|
| SEK thousands | January-March 2009 |
January-March 2008 |
April 2008- March 2009 |
Full-year 2008 |
| Net sales | 164,674 | 138,748 | 552,482 | 526,556 |
| Cost of goods sold | –83,526 | –66,803 | –259,782 | –243,058 |
| Gross profit | 81,148 | 71,946 | 292,700 | 283,498 |
| Distribution expenses | –29,047 | –23,460 | –110,967 | –105,380 |
| Administrative expenses | –10,882 | –8,993 | –39,022 | –37,133 |
| Development expenses | –3,636 | –2,972 | –12,898 | –12,234 |
| Operating profit | 37,582 | 36,521 | 129,812 | 128,751 |
| Net financial items | 1,663 | 737 | 6,998 | 6,071 |
| Profit before tax | 39,245 | 37,258 | 136,809 | 134,822 |
| Tax | –10,322 | –10,432 | –35,509 | –35,620 |
| Profit for the period | 28,924 | 26,826 | 101,300 | 99,202 |
| Profit attributable to minority interests | –27 | –6 | –12 | 8 |
| Profit attributable to Parent Company's shareholders | 28,897 | 26,820 | 101,288 | 99,210 |
| Other comprehensive income | ||||
| Translation adjustments for foreign operations | 231 | – | – | –536 |
| Total comprehensive income for the period | 28,128 | 26,820 | 101,288 | 98,674 |
| Profit attributable to minority interests | -27 | -6 | -12 | 8 |
| Profit attributable to Parent Company's shareholders | 29,155 | 26,826 | 101,300 | 98,666 |
| Earnings per share, SEK | 1.15 | 1.07 | 4.05 | 3.96 |
| Earnings per share after dilution, SEK | 1.15 | 1.07 | 4.05 | 3.96 |
| Number of shares | 25,059,184 | 25,036,984 | 25,059,184 | 25,059,184 |
| Weighted average number of shares | 25,059,184 | 25,036,984 | 24,989,684 | 25,041,134 |
| Effect of dilution* | 19,470 | 69,355 | – | 34,366 |
| Weighted average number of shares after full dilution | 25,078,654 | 25,106,339 | 24,989,684 | 25,075,500 |
* Björn Borg has three outstanding incentive programs based on warrants in Björn Borg AB: option schemes 2006:2, 2008:4 and 2008:5.
For more detailed information, see page 41 of the annual report 2008.
| Condensed | |||
|---|---|---|---|
| SEK thousands | March 31 | March 31 | December 31 |
| Non-current assets | 2009 | 2008 | 2009 |
| Goodwill | 13,944 | 13,944 | 13,944 |
| Trademarks | 187,532 | 187,532 | 187,532 |
| Other intangible assets | 2,033 | 880 | 1,696 |
| Tangible non-current assets | 14,611 | 17,170 | 15,366 |
| Total non-current assets | 218,120 | 219,526 | 218,538 |
| Current assets | |||
| Inventories | 37,141 | 23,398 | 33,752 |
| Current receivables | 124,653 | 87,007 | 106,197 |
| Cash & cash equivalents | 252,827 | 206,348 | 241,498 |
| Total current assets | 414,622 | 316,753 | 381,447 |
| Total assets | 632,742 | 536,279 | 599,985 |
| Equity and liabilities | |||
| Equity | 442,958 | 369,769 | 413,803 |
| Deferred tax liabilities | 34,247 | – | 32,884 |
| Other non-current liabilities | 45,334 | 82,864 | 46,816 |
| Accounts payable | 37,634 | 26,559 | 45,489 |
| Other current liabilities | 72,569 | 57,087 | 60,993 |
| Total equity and liabilities | 632,742 | 536,279 | 599,985 |
| Condensed | |||
|---|---|---|---|
| SEK thousands | January-March 2009 |
January-March 2008 |
Full-year 2008 |
| Opening balance | 413,803 | 342,943 | 342,943 |
| Incentive programs | – | – | 9,055 |
| New share issue | – | – | 694 |
| Dividend | – | – | –37,555 |
| Minority interest in equity | 27 | 6 | –8 |
| Total comprehensive income for the period | 28,128 | 26,820 | 98,674 |
| Closing balance | 442,958 | 369,769 | 413,803 |
| Condensed | |||
|---|---|---|---|
| January-March | January-March | Full-year | |
| SEK thousands | 2009 | 2008 | 2008 |
| Cash flow from operating activities | |||
| Before change in working capital | 34,667 | 23,331 | 123,214 |
| Change in working capital | –21,837 | –3,956 | –36,260 |
| Cash flow from operating activities | 12,830 | 19,374 | 86,954 |
| Cash flow from investing activities | –1,501 | –449 | –5,073 |
| Dividend | – | – | –37,555 |
| Incentive programs/new share issues | – | – | 9,749 |
| Cash flow from financing activities | – | – | –27,806 |
| Cash flow for the period | 11,329 | 18,925 | 54,075 |
| Cash & cash equivalents at beginning of period | 241,498 | 187,423 | 187,423 |
| Cash & cash equivalents at end of period | 252,827 | 206,348 | 241,498 |
| SEK thousands | January-March 2009 |
January-March 2008 |
April 2008- March 2009 |
Full-year 2008 |
|---|---|---|---|---|
| Gross profit margin, % | 49.3 | 51.9 | 53.0 | 53.8 |
| Operating margin, % | 22.8 | 26.3 | 23.5 | 24.5 |
| Profit margin, % | 23.8 | 26.9 | 24.8 | 25.6 |
| Return on capital employed, % | 7.8 | 8.7 | 29.1 | 28.8 |
| Return on average equity, % | 7.4 | 7.5 | 24.9 | 26.2 |
| Net profit for the period | 28,897 | 26,820 | 101,288 | 99,210 |
| Earnings per share, SEK* | 1.15 | 1.07 | 4.05 | 3.96 |
| Earnings per share after dilution, SEK | 1.15 | 1.07 | 4.05 | 3.96 |
| Number of shares | 25,059,184 | 25,036,984 | 25,059,184 | 25,059,184 |
| Weighted average number of shares | 25,059,184 | 25,036,984 | 25,989,684 | 25,041,134 |
| Effect of dilution | 19,470 | 69,355 | – | 34,366 |
| Weighted average number of shares after dilution | 25,078,654 | 25,106,339 | 24,989,684 | 25,075,500 |
| Equity/assets ratio, % | 70.0 | 69.0 | 70.0 | 69.0 |
| Equity per share, SEK | 17.68 | 14.77 | 17.67 | 16.51 |
| Investments in intangible assets | – | – | 2,200 | 2,200 |
| Investments in tangible assets | 1,501 | 449 | 3,925 | 2,873 |
| Depreciation and impairment losses for the period | –1,975 | –1,158 | –7,793 | –6,976 |
| Average number of employees | 91 | 86 | 91 | 88 |
| Group | ||||
|---|---|---|---|---|
| SEK thousands | January-March 2009 |
January-March 2008 |
April 2008- March 2009 |
Full-year 2008 |
| Operating revenue | ||||
| Brand and other | ||||
| External sales | 19,689 | 15,029 | 61,931 | 57,272 |
| Internal sales | 24,087 | 16,005 | 93,102 | 85,020 |
| 43,776 | 31,034 | 155,033 | 142,292 | |
| Product development | ||||
| External sales | 81,712 | 60,279 | 272,042 | 250,608 |
| Internal sales | 28,230 | 15,612 | 99,196 | 86,579 |
| 109,942 | 75,891 | 371,238 | 337,187 | |
| Distribution | ||||
| External sales | 51,386 | 52,301 | 162,740 | 163,655 |
| Internas sales | 8,035 | 6,410 | 34,937 | 33,312 |
| 59,421 | 58,701 | 197,678 | 196,967 | |
| Retail | ||||
| External sales | 11,887 | 11,140 | 55,769 | 55,021 |
| Internal sales | – | – | 6 | 6 |
| 11,887 | 11,140 | 55,774 | 55,027 | |
| Eliminations | –60,352 | –38,027 | –227,241 | –204,916 |
| Operating revenue | 164,674 | 138,748 | 552,482 | 526,556 |
| Operating profit | ||||
| Brand and other | 17,275 | 13,115 | 46,816 | 42,656 |
| Product development | 18,719 | 8,876 | 59,852 | 50,009 |
| Distribution | 2,461 | 14,816 | 15,120 | 27,475 |
| Retail | –873 | –286 | 8,025 | 8,611 |
| Operating profit | 37,582 | 36,521 | 129,812 | 128,751 |
Group Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 SEK thousands 2009 2008 2008 2008 2008 2007 2007 2007 Brand sales 602,183 475,378 562,835 381,246 551,062 520,690 527,296 331,246 Net sales 164,674 131,233 160,762 95,813 138,748 139,795 148,597 87,844 Gross profit margin, % 49.3 54.1 54.1 55.9 51.9 53.8 54.6 55.6 Operating profit 37,582 26,049 49,688 16,493 36,521 42,258 49,238 19,188 Operating margin, % 22.8 19.8 30.9 17.2 26.3 30.2 33.1 21.8 Profit after financial items 39,245 28,693 52,277 16,594 37,258 42,719 48,920 19,139 Profit margin, % 23.8 21.9 32.5 17.3 26.9 30.6 32.9 21.8 Earnings per share, SEK 1.15 0.91 1.50 0.48 1.07 1.22 1.42 0.57 Earnings per share after dilution, SEK 1.15 0.91 1.50 0.48 1.07 1.22 1.41 0.56 Number of Björn Borg stores at end of period 44 44 41 39 36 36 33 29 of which Björn Borg-owned stores 11 11 11 10 10 10 10 9
| Condensed | ||||
|---|---|---|---|---|
| SEK thousands | January-March 2009 |
January-March 2008 |
April 2008- March 2009 |
Full-year 2008 |
| Net sales | 13,976 | 7,645 | 56,960 | 50 630 |
| Cost of goods sold | –1,405 | –376 | -8,004 | –6,975 |
| Gross profit | 12,571 | 7,270 | 48,956 | 43,655 |
| Distribution expenses | –10,810 | –8,128 | -42,917 | –40,235 |
| Administrative expenses | –4,158 | –3,126 | –16,506 | –15,475 |
| Development expenses | –1,663 | –1,251 | -6,603 | –6,190 |
| Operating profit | –4,060 | –5,235 | –17,070 | –18,245 |
| Net financial items | –44 | 135 | –187 | 1,716 |
| RProfit before tax | –4,105 | –5,100 | –17,257 | –16,529 |
| Appropriations | – | – | –104 | –104 |
| Tax | 1,080 | 1,428 | 4,558 | 4,424 |
| Profit for the period | –3,024 | –3,672 | –12,803 | –12,209 |
| Condensed | |||
|---|---|---|---|
| March 31 | March 31 | December 31 | |
| SEK thousands | 2009 | 2008 | 2008 |
| Non-current assets | |||
| Tangible non-current assets | 5,981 | 6,224 | 5,543 |
| Shares in Group companies | 54,497 | 54,497 | 54,497 |
| Total non-current assets | 60,478 | 60,721 | 60,040 |
| Current assets | |||
| Receivables from Group companies | 31,949 | 145,122 | 59,551 |
| Current receivables | 7,574 | 10,278 | 6,971 |
| Cash & cash equivalents | 176,777 | 11,076 | 220,348 |
| Total current assets | 216,300 | 166,475 | 286,870 |
| Total assets | 276,778 | 227,197 | 346,910 |
| Equity and liabilities | |||
| Equity | 145,678 | 182,376 | 149,782 |
| Untaxed reserves | 7,359 | 7,254 | 7,359 |
| Due to Group companies | 102,027 | 22,999 | 173,048 |
| Accounts payable | 8,030 | 4,856 | 7,713 |
| Other current liabilities | 13,685 | 9,711 | 9,008 |
| Total equity and liabilities | 276,778 | 227,197 | 346,910 |
The Group owns the Björn Borg trademark and has operations in five product areas: clothing, footwear, bags, eyewear and fragrances. Björn Borg products are sold in fifteen markets, of which Sweden and the Netherlands are the largest. Operations are managed through a network of product and distribution companies which are either part of the Group or are independent companies with licenses for product areas and geographical markets. The Björn Borg Group has operations at every level from branding to consumer sales through its own Björn Borg stores. Total sales of Björn Borg products in 2008 amounted to approximately SEK 2 billion at the consumer level. Group net sales amounted to SEK 527 million in 2008, with 88 employees at year-end. The Björn Borg share is listed on NASDAQ OMX Nordic, Mid Cap list, since May 7, 2007.
Operating margin Operating profit as a percentage of net sales.
Profit margin Profit before tax as a percentage of net sales.
Equity/assets ratio Equity as a percentage of total assets.
Profit after financial items plus financial expenses as a percentage of average capital employed.
Net profit according to the income statement as a percentage of average equity. Average equity is calculated by adding equity at January 1 to equity at December 31 and dividing by two.
Earnings per share in relation to the weighted average number of shares during the period.
Earnings per share adjusted for any dilution effect.
Estimated total sales of Björn Borg products at the consumer level, excluding VAT, based on reported wholesale sales.
Björn Borg AB (publ) Stockholm, May 15, 2009
Arthur Engel President and CEO
Upcoming information dates:
The interim report January–June 2009 will be released on August 20, 2009 The interim report January–September 2009 will be released on November 12, 2009 The year-end report for 2009 will be released on February 11, 2010
For further information, please contact: Arthur Engel, President and CEO, telephone +46 8 506 33 700 Johan Mark, CFO, telephone +46 8 506 33 700
Björn Borg AB Götgatan 78 SE-118 30 Stockholm, Sweden www.bjornborg.com
Björn Borg is required to make public the information in this report in accordance with the Securities Market Act. The information was released for publication on May 15, 2009 at 7:30 a.m. (CET).
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