Quarterly Report • May 4, 2011
Quarterly Report
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"During the first quarter of the year the Group's sales excluding currency effects rose by 6 percent year-onyear. We saw good growth in several of our new markets, which account for a growing share of total brand sales. The first quarter was highlighted by the startup of a new clothing company, Björn Borg Sport, where we see good future growth opportunities, as well as investments in our operations in England and e-commerce. The decrease in operating profit compared to last year is mainly a consequence of increased costs for these ventures" says Arthur Engel.
| January–March January–March | April 2010– | Full-year | ||
|---|---|---|---|---|
| MSEK | 2011 | 2010 | March 2011 | 2010 |
| Net sales | 151.3 | 148.4 | 539.0 | 536.0 |
| Gross profit margin, % | 50.4 | 51.6 | 53.2 | 53.6 |
| Operating profit | 28.4 | 36.0 | 118.4 | 126.0 |
| Operating margin, % | 18.8 | 24.3 | 22.0 | 23.5 |
| Profit after tax | 20.7 | 25.8 | 83.4 | 90.8 |
| Earnings per share, SEK | 0.89 | 1.03 | 3.39 | 3.61 |
| Earnings per share after dilution, SEK | 0.88 | 1.01 | 3.39 | 3.57 |
| Brand sales* | 431 | 461 | 1,704 | 1,733 |
*Estimated total sales of Björn Borg products at the consumer level, excluding VAT, based on reported wholesale sales.
During the first quarter Björn Borg noted a year-on-year sales increase of 6 percent excluding exchange rate effects. Our continued investments – mainly in the new clothing company Björn Borg Sport, our operations in England and e-commerce – raised costs as planned and is the main reason for the profit decrease during the quarter. These are important investments that we are making to ensure longterm growth.
In our established markets, we had weaker sales during the quarter in the Netherlands and Denmark, while sales remained positive in Belgium and were unchanged in Sweden. In several of our new markets, such as Germany, Austria and Finland, we noted good growth and growing interest in the brand. Even England, where we have now fully taken over operations, has continued to develop positively, with a growing number of attractive retailers. It is gratifying that our new markets together account for a growing share of total brand sales.
Among new markets, we are most focused on the five largest countries in Western Europe and now have efficient distribution solutions in place in Germany, France, Italy and England. In Spain we are evaluating a new distributor that wants to further expand and have several potential partners. With our business model, distributors have overarching responsibility for their markets, while Björn Borg offers effective support and control. To strengthen this function for a growing number of markets, we bolstered the organization during the quarter by adding an experienced export manager.
Björn Borg stores are important to profile the brand in the right environment in both new and established markets. In April we opened a new store in Västra Frölunda, in Gothenburg, and we expect to add several new stores during the year in Sweden and abroad under the management of external distributors.
In January we launched a new venture in fashionable and functional sportswear called Björn Borg Sport, where we see good growth opportunities. The new company, which is co-owned with the Dutch distributor and management, has now begun operations.
The footwear operations licensed out in 2010 continue to develop strongly, and the new collections have been positively received. We are very pleased with how the operations are being managed by the licensee and see good opportunities for further growth and expansion, which would mean increased royalties for Björn Borg.
When we look ahead, we see a continued impact from higher production costs, currency effects and uncertainty in several markets in Europe. This is something we are going to address. For Björn Borg it is very much a question of continuing to invest wisely in future growth.
This includes intensified branding and marketing activities, where we must be cost effective and smart to achieve the greatest possible impact. We are careful to think and act long-term and see many opportunities going forward.
Arthur Engel, President
Adjusted for currency effects in the form of a stronger Swedish krona, brand sales (excluding VAT) increased by 1 percent for the quarter. Using current exchange rates sales decreased by 6 percent to SEK 431 million (461).
Brand sales in the underwear product area fell by 4 percent excluding currency effects and by 12 percent using current exchange rates, during the quarter year-on-year. Underwear accounted for 64 percent (68) of brand sales during the period.
Sales in the licensed footwear product area rose by 54 percent for the quarter as a whole.
Other licensed products reported mixed results, with clothing (women's clothing in the Netherlands, now part of Björn Borg Sport), bags and eyewear reporting decreases, while fragrances grew. As a whole, licensed product sales rose by 6 percent during the first quarter 2011, mainly due to the increase in the footwear product area.
New markets accounted for 11 percent (8) of total brand sales during the quarter. Among established markets,
* 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, swimwear, socks and adjacent Licensed products: Footwear, bags, fragrances, eyewear and clothing (women's clothing in the Netherlands, going forward Björn Borg Sport).
Belgium reported strong growth during the quarter, while declines were noted in Norway, Denmark and the Netherlands. The important Swedish market was practically unchanged compared with the first quarter 2010. Among new markets, Germany posted a strong sales trend and also Finland developed positively.
As announced in the previous report, Björn Borg signed the letters of intent with new distributors in Italy and France during the first quarter 2011.
During the quarter the Group expanded its own footwear distribution to include the Baltic countries.
In recent years Björn Borg has expanded to a number of new markets in cooperation with external distributors. The Group has tightened its criteria for new distributors in terms of resources, contact networks and experience. As of 2011 Björn Borg has introduced a two-year test period on cooperations with new distributors in order to evaluate market conditions and the distributor's opportunity and ability to cultivate the market. During this introductory stage we assess the market's future development potential.
In total The Netherlands opened one new store during the quarter and as of March 31 they had 30 Björn Borg stores. Also during the quarter, a first store was opened in Chile. As of March 31 there were a total of 50 (46) Björn Borg stores, of which 10 (10) are Group-owned. After the conclusion of the quarter a Group-owned store was opened in Västra Frölunda, in Gothenburg.
In January 2011 Björn Borg established a subsidiary to produce fashionable and functional sportswear together with the Dutch distributor. The creation of a separate, Netherlands-based clothing business is another element in the strategy to focus on the core business – underwear – in Stockholm. The new company builds on the Dutch clothing concept within Björn Borg, where an established business with broad-based experience has successfully managed the women's clothing company on a licensed basis. The clothing collections, both women's and men's, will focus on functional yet distinctly fashionable sportswear. The products will be sold to distributors in Björn Borg's existing markets, with an initial emphasis on larger markets. The investment is expected to increase the Group's operating expenses by about SEK 10 million in 2011 (refers to Björn Borg's ownership interest of 51 percent).
Sales increased during the first quarter, but operating profit declined.
Group sales during the first quarter amounted to SEK 151.3 million (148.4), an increase of 2 percent. Björn Borg Sport was the biggest contributor to the increase, while the Group's footwear sales decreased after been licensed out in 2010. Sales in product development and wholesale operations rose slightly, while the Group's retail sales were practically unchanged. Brand segment sales decreased during the quarter as a consequense of lower brand sales. Excluding currency effects, net sales increased by 6 percent.
The gross profit margin decreased slightly during the first quarter to 50.4 percent (51.6). The margin within Björn Borg Sport is lower than in other operations, which contributed negatively to the Group's total margin. Excluding new operations (Björn Borg Sport and Björn Borg UK) and currency effects, the margin instead would have risen slightly compared with the same period last year.
Operating profit decreased during the quarter by 21 percent to SEK 28.4 million (36.0) with an operating margin of 18.8 percent (24.3). Profit before tax decreased to SEK 28.0 million (35.4).
Increased expenses due to the startup of Björn Borg Sport adversely affected the Group's operating profit. The new company raised operating expenses by SEK 6.5 million (minority share SEK 3.2 million), of which SEK 3.5 million are one-off expenses in 2011. Excluding Björn Borg Sport, operating profit amounted to SEK 31.4 million. Further investments in personnel and the British operations have led to higher operating expenses. Excluding new operations, the Group's operating expenses have decreased slightly compared with the same period of 2010.
The Group consists of ten companies that operate under the Björn Borg brand on every level from product development to wholesaling and consumer sales in its own Björn Borg stores.
As of January 1, 2011 the company has streamlined the segment previously called "Brand and other," which also included the Parent Company's sales and expenses. The segment is now called "Brand" and comprises only brandrelated operations, which the company believes provide a clearer view of this segment. The Parent Company's income statement has been divided by segment based on various distribution keys; 2010 figures have been restated in accordance with this new basis of distribution. Moreover, the U.S. operations, which today are limited to e-commerce, have been shifted from Wholesale operations to Retail, similar to the international e-commerce operations that are already part of the Retail segment.
Brand consists of royalty revenue and expenses associated with the brand.
Net sales for the first quarter reached SEK 21.7 million (23.8), a decrease of 9 percent. External sales amounted to SEK 12.8 million (14.1). The decrease was mainly due to lower brand sales, as mentioned earlier in the report.
Operating profit amounted to SEK 4.4 million (5.4), a decrease of 18 percent for the quarter. The operating profit was a consequence of the lower net sales. Operating expenses are otherwise in line with the same period of 2010.
The Björn Borg Group has global responsibility for development, design and production of underwear and adjacent products, as well as functional sportswear through Björn Borg Sport.
The business segment's net sales amounted to SEK 106.6 million (100.5) during the first quarter, an increase of 6 percent. External sales amounted to SEK 75.7 million
| Sales, SEK thousands January–March |
Operating profit, SEK thousands January–March |
Operating margin January–March |
|||||
|---|---|---|---|---|---|---|---|
| Business segment | Revenue source | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 |
| Brand | Royalties | 21,699 | 23,789 | 4,448 | 5,419 | 20% | 23% |
| Product development | Products | 106,563 | 100,471 | 13,583 | 19,896 | 13% | 20% |
| Wholesale operations | Wholesale sales | 64,434 | 61,283 | 13,314 | 13,193 | 21% | 22% |
| Retail | Retailers | 11,898 | 12,090 | –2,947 | –2,471 | –25% | –20% |
| Less internal sales | –53,273 | –49,254 | – | – | – | – | |
| Total | 151,321 | 148,379 | 28,398 | 36,037 | 19% | 24% |
(75.7), unchanged compared with the first quarter 2010. Björn Borg Sport has contributed positively to sales, while a weaker USD had a negative effect.
Operating profit decreased to SEK 13.6 million (19.9) as a result of increased expenses for Björn Borg Sport.
The Björn Borg Group is the exclusive wholesaler for underwear and adjacent products in Sweden and England as well as for footwear in Sweden, Finland and the Baltic countries.
Net sales in wholesale operations increased by 5 percent during the quarter to SEK 64.4 million (61.3). External sales amounted to SEK 51.8 million (48.1).
Operating profit amounted to SEK 13.3 million (13.2). A weaker USD has affected gross profit and operating profit positively, while the investment in the British operations has raised operating expenses.
The Björn Borg Group owns and operates eight stores in the Swedish market that sell underwear, adjacent products, footwear and licensed products. Additionally, Björn Borg operates two factory outlets as well as a web shop in the U.S. and one for international sales.
Net sales in Retail amounted to SEK 11.9 million (12.1) during the quarter, a decrease of 2 percent. External sales increased by 6 percent, however, to SEK 11.1 million (10.5). The Björn Borg stores and outlets both reported higher sales. E-commerce also noted sales growth, but from a low level.
The operating loss for the quarter amounted to SEK 2.9 million, against a year-earlier loss of SEK 2.5 million, which was due to a lower gross profit margin from the year's first sales promotion as well as increased operating expenses from the web investment and renovation of two stores, among other things.
Intra-Group sales amounted to SEK 53.3 million (49.3) for the period.
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 4.
Cash flow from operating activities in the Group amounted to SEK 22.8 million (-2.8) for the first quarter 2011. Current assets including accounts receivable and current liabilities including accounts payable have increased significantly compared with December 31, 2010, but net tied-up working capital has risen by only SEK 2.9 million. The increase in inventories compared with March 31, 2010 relates to, among other things, a higher volume of goods en route to
customers as well as goods from previous distributors. The company estimates that there is currently no need for any write-downs on these goods from previous distributors.
Total investments in tangible and intangible non-current assets amounted to SEK 7.0 million (2.1) for the period, the large part of which relates to the establishment of Björn Borg Sport in the Netherlands and store renovations. During the first quarter cash & cash equivalents and short-term investments increased by SEK 14.7 million, mainly due to a positive operating result after deducting the period's investments.
The Björn Borg Group's cash & cash equivalents and shortterm investments amounted to SEK 246.1 million (407.6) at the end of the period. The equity/assets ratio was 72.0 percent (63.2). The company has no interest-bearing liabilities.
No changes were made with regard to pledged assets and contingent liabilities compared with December 31, 2010.
The average number of employees in the Group during the first quarter 2011 was 100 (91), of whom 63 (58) were women.
Board Member Fabian Månsson acquired 4 percent of the shares in the subsidiary Björn Borg Sport during the quarter. No other transactions were executed with related parties.
In its operations, the Björn Borg Group is exposed to risks and uncertainties. For further information, refer to pages 37–38 in the annual report 2010.
After the conclusion of the report period the company opened a new Björn Borg store in Västra Frölunda.
Björn Borg AB (publ) is primarily engaged in intra-Group activities. In addition, the company owns 100 percent of the shares in Björn Borg Brands AB, Björn Borg Footwear AB, Björn Borg Inc. and Björn Borg Services AB (dormant). In addition, the company owns 80 percent of the shares in Björn Borg UK and 51 percent of the shares in Björn Borg Sport BV.
The Parent Company's net sales for the first quarter amounted to SEK 11.5 million (12.0). The loss before tax amounted to SEK 7.9 million for the first quarter 2011, compared with a year-earlier loss of SEK 2.2 million. Cash & cash equivalents and short-term investments amounted to SEK 203.5 million (125.5) on March 31, 2011. For the period investments in tangible and intangible non-current
assets amounted to SEK 0.1 million (0.4).
Björn Borg currently has 25,148,384 shares outstanding.
The financial objectives of Björn Borg's operations for the period 2011–2014 are as follows:
The long-term objective will be achieved if established markets grow slightly below the average growth target and new markets provide stronger growth. At the start of the period sales growth could fall below the target, since several new markets are being added.
Surplus liquidity generated by meeting the new financial objectives will be distributed gradually over the forecast period, starting in 2011.
Operating investments are expected to fall in the range of 2–5 percent of net sales depending on the addition of any new Björn Borg stores.
The Annual General Meeting, which was held on April 14, 2011, resolved to pay a distribution of SEK 5.20 per share to the shareholders for the year 2010. Monika Elling, Fredrik Lövstedt, Fabian Månsson, Mats H Nilsson, Vilhelm Schottenius, Michael Storåkers, Nils Vinberg and Kerstin Hessius were reelected to the Board of Directors with Fredrik Lövstedt as Chairman of the Board.
This interim report has been prepared in accordance with the Annual Accounts Act, RFR 1 Additional Accounting Regulations for Consolidated Groups (December 2010) and IAS 34 Interim Financial Reporting, and for the Parent Company in accordance with the Annual Accounts Act and RFR 2 Accounting in Legal Entities (December 2010).
The same accounting and valuation principles have been applied during the year as in 2010, as described on page 47 of the annual report 2010, with the exceptions indicated below.
The new and revised IFRS and the interpretations from IFRIC applied by the Group as of January 1, 2010 have not had a significant impact on the Group's results or financial position.
This interim report has not been reviewed by the company's auditors.
As a policy, the company does not issue earnings forecasts.
Condensed
| TSEK | 2011 | January–March January–March 2010 |
April 2010– March 2011 |
Full-year 2010 |
|---|---|---|---|---|
| Net sales | 151,321 | 148,379 | 538,983 | 536,040 |
| Cost of goods sold | –75,026 | –71,803 | –252,068 | –248,844 |
| Gross profit | 76,295 | 76,576 | 286,915 | 287,196 |
| Distribution expenses | –31,260 | –25,792 | –112,111 | –106,643 |
| Administrative expenses | –12,894 | –11,190 | –42,741 | –41,037 |
| Development expenses | –3,743 | –3,557 | –13,697 | –13,511 |
| Operating profit | 28,398 | 36,037 | 118,366 | 126,005 |
| Net financial items | –365 | –608 | –1,767 | –2,010 |
| Profit before tax | 28,033 | 35,429 | 116,599 | 123,995 |
| Tax | –7,373 | –9,650 | –33,232 | –33,232 |
| Profit for the period | 20,660 | 25,779 | 83,367 | 90,763 |
| Profit attributable to: | ||||
| Parent Company's shareholders | 22,365 | 25,782 | 85,203 | 90,897 |
| Minority interests | –1,705 | –3 | –1,836 | –134 |
| Other comprehensive income | ||||
| Translation adjustments for foreign operations | –19 | –242 | 476 | 253 |
| Total comprehensive income for the period | 20,641 | 25,537 | 83,843 | 91,017 |
| Total comprehensive income for the period attributable to | ||||
| Parent Company's shareholders | 22,346 | 25,450 | 85,679 | 91,150 |
| Minority interests | –1,705 | –3 | –1,836 | –134 |
| Earnings per share, SEK | 0.89 | 1.03 | 3.39 | 3.61 |
| Earnings per share after dilution, SEK | 0.88 | 1.01 | 3.39 | 3.57 |
| Number of shares | 25,148,384 | 25,148,384 | 25,148,384 | 25,148,384 |
| Weighted average number of shares | 25,148,384 | 25,148,384 | 25,148,384 | 25,148,384 |
| Effect of dilution* | 330,473 | 377,505 | – | 321,818 |
| Weighted average number of shares after full dilution | 25,478,857 | 25,525,889 | 25,148,384 | 25,470,202 |
* Björn Borg has two outstanding incentive programs based on warrants: 2008:1 and 2008:2. For more detailed information, see page 53 of the annual report 2010.
| Condensed | |||
|---|---|---|---|
| SEK thousands | March 31 2011 |
March 31 2010 |
December 2010 |
|---|---|---|---|
| Non-current assets | |||
| Goodwill | 13,944 | 13,944 | 13,944 |
| Trademarks | 187,532 | 187,532 | 187,532 |
| Other intangible assets | 6,614 | 3,826 | 6,858 |
| Tangible non-current assets | 9,425 | 10,728 | 7,808 |
| Deferred tax assets | 6,438 | 9,096 | 6,438 |
| Total non-current assets | 223,953 | 225,126 | 222,580 |
| Current assets | |||
| Inventories, etc. | 31,131 | 23,584 | 26,239 |
| Current receivables | 121,264 | 113,961 | 85,344 |
| Short-term investments | 37,096 | -- | 35,567 |
| Cash & cash equivalents | 208,964 | 407,561 | 194,275 |
| Total current assets | 398,455 | 545,106 | 341,425 |
| Total assets | 622,408 | 770,232 | 564,005 |
| Equity and liabilities | |||
| Equity | 448,356 | 486,493 | 427,276 |
| Deferred tax liabilities | 49,304 | 41,634 | 48,189 |
| Other non-current liabilities | 33,563 | 39,405 | 34,724 |
| Amounts owed to credit institutions | -- | 125,000 | -- |
| Accounts payable | 31,997 | 28,696 | 9,987 |
| Other current liabilities | 59,188 | 49,004 | 43,829 |
| Total equity and liabilities | 622,408 | 770,232 | 564,005 |
Condensed
| SEK thousands | Equity attributable to Parent company's shareholders |
Holdings without control |
Total equity |
|---|---|---|---|
| Opening balance, January 1, 2009 | 460,842 | 114 | 460,956 |
| Total comprehensive income for the year | 25,540 | –3 | 25,537 |
| New share issues | -- | -- | |
| Dividend for 2008 | -- | -- | |
| Closing balance, March 31, 2009 | 486,382 | 111 | 486,493 |
| Opening balance, January 1, 2010 | 460,842 | 114 | 460,956 |
| Total comprehensive income for the year | 91,150 | –134 | 91,017 |
| New share issues | – | – | |
| Dividend for 2009 | –125,742 | –125,742 | |
| Holdings without control that arose through formation of subsidiaries | – | 1,046 | 1,046 |
| Closing balance, December 31, 2010 | 426,250 | 1,026 | 427,276 |
| Opening balance, January 1, 2011 | 426,250 | 1,026 | 427,276 |
| Total comprehensive income for the year | 22,346 | –1,705 | 20,641 |
| New share issues | -- | -- | -- |
| Holdings without control that arose through formation of subsidiaries | -- | 438 | 438 |
| Closing balance, March 31, 2011 | 448,596 | –241 | 448,356 |
| Condensed | |||
|---|---|---|---|
| SEK thousands | 2011 | January–March January–March 2010 |
Full-year 2010 |
| Cash flow from operating activities | |||
| Before change in working capital | 25,711 | 28,347 | 99,486 |
| Change in working capital | –2,879 | –31,109 | –26,733 |
| Cash flow from operating activities | 22,832 | –2,762 | 72,753 |
| Investments in intangible non-current assets | –3,793 | –572 | –4,878 |
| Investments in tangible non-current assets | –3,257 | -- | –2,498 |
| Investments in financial non-current assets | -- | –9,096 | –9,046 |
| Sale of tangible non-current assets | 436 | –1,492 | 161 |
| Short-term placement | –1,529 | -- | –35,567 |
| Reversal of deferred tax assets | -- | -- | 2,608 |
| Cash flow from investing activities | –8,143 | –11,160 | –49,220 |
| Dividend | -- | – | –125,742 |
| Change in loans | -- | 125,000 | -- |
| Cash flow from financing activities | -- | 125,000 | –125,742 |
| Cash flow for the period | 14,689 | 111,077 | –102,209 |
| Cash & cash equivalents at beginning of period | 194,275 | 296,484 | 296,484 |
| Cash & cash equivalents at end of period | 208,964 | 407,561 | 194,275 |
Group
| SEK thousands | 2011 | January-March January-March 2010 |
April 2010- March 2011 |
Full-year 2010 |
|---|---|---|---|---|
| Gross profit margin, % | 50.4 | 51.6 | 53.2 | 53.6 |
| Operating margin, % | 18.8 | 24.3 | 22.0 | 23.5 |
| Profit margin, % | 18.5 | 23.9 | 21.6 | 23.1 |
| Return on capital employed, % | 21.0 | 18.3 | 21.0 | 25.7 |
| Return on average equity, % | 18.2 | 16.6 | 18.2 | 20.5 |
| Profit attributable to Parent Company's shareholders | 22,365 | 25,782 | 85,203 | 90,897 |
| Equity/assets ratio, % | 72.0 | 63.2 | 72.0 | 75.8 |
| Equity per share, SEK | 17.83 | 19.34 | 17.83 | 16.99 |
| Investments in intangible non-current assets | 3,793 | 572 | 8,096 | 4,878 |
| Investments in tangible non-current assets | 3,257 | 1,492 | 4,263 | 2,498 |
| Investments in financial non-current assets | – | 9,096 | 9,046 | 9,046 |
| Depreciation and impairment losses for the period | –5,232 | –2,098 | –10,269 | –7,136 |
| Average number of employees | 100 | 91 | 100 | 100 |
| Group | |||
|---|---|---|---|
| SEK thousands | 2011 | January–March January–March 2010 |
April 2010– March 2011 |
Full-year 2010 |
|---|---|---|---|---|
| Operating revenue | ||||
| Brand and other | ||||
| External revenue | 12,770 | 14,108 | 48,244 | 49,582 |
| Internal revenue | 8,928 | 9,681 | 39,321 | 40,074 |
| 21,699 | 23,789 | 87,565 | 89,655 | |
| Product development | ||||
| External revenue | 75,712 | 75,683 | 271,165 | 271,135 |
| Internal revenue | 30,851 | 24,789 | 129,923 | 123,861 |
| 106,563 | 100,471 | 401,088 | 394,997 | |
| Wholesale | ||||
| External revenue | 51,769 | 48,126 | 169,090 | 165,447 |
| Internal revenue | 12,665 | 13,157 | 49,011 | 49,503 |
| 64,434 | 61,283 | 218,101 | 214,950 | |
| Retail | ||||
| External revenue | 11,070 | 10,462 | 50,484 | 49,876 |
| Internal revenue | 828 | 1,627 | 3,165 | 3,963 |
| 11,898 | 12,090 | 53,649 | 53,839 | |
| Less internal sales | –53,273 | –49,254 | –221,420 | –217,401 |
| Operating revenue | 151,321 | 148,379 | 538,983 | 536,040 |
| Operating profit | ||||
| Brand and other | 4,448 | 5,419 | 22,085 | 23,057 |
| Product development | 13,583 | 19,896 | 60,937 | 67,249 |
| Wholesale | 13,314 | 13,193 | 37,477 | 37,356 |
| Retail | –2,947 | –2,471 | –2,133 | –1,657 |
| Operating profit | 28,398 | 36,037 | 118,366 | 126,005 |
| Group | ||||||||
|---|---|---|---|---|---|---|---|---|
| SEK thousands | Q1 2011 |
Q4 2010 |
Q3 2010 |
Q2 2010 |
Q1 2010 |
Q4 2009 |
Q3 2009 |
Q2 2009 |
| Net sales | 151,321 | 115,893 | 170,998 | 100,770 | 148,379 | 102,247 | 155,162 | 97,832 |
| Gross profit margin, % | 50.4 | 56.3 | 52.6 | 55.1 | 51.6 | 55.7 | 50.8 | 50.9 |
| Operating profit | 28,398 | 24,513 | 51,516 | 13,939 | 36,037 | 19,427 | 43,454 | 12,131 |
| Operating margin, % | 18.8 | 21.2 | 30.1 | 13.8 | 24.3 | 19.0 | 28.0 | 12.4 |
| Profit after financial items | 28,033 | 24,150 | 49,772 | 14,644 | 35,429 | 19,712 | 40,830 | 11,871 |
| Profit margin, % | 18.5 | 20.8 | 29.1 | 14.5 | 23.9 | 19.3 | 26.3 | 12.1 |
| Earnings per share, SEK | 0.89 | 0.70 | 1.46 | 0.43 | 1.03 | 0.54 | 1.20 | 0.34 |
| Earnings per share after dilution, SEK | 0.88 | 0.70 | 1.44 | 0.42 | 1.01 | 0.53 | 1.19 | 0.33 |
| Number of Björn Borg stores at end of period | 50 | 47 | 46 | 46 | 46 | 46 | 45 | 43 |
| of which Björn Borg-owned stores | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 |
| Brand sales | 431,029 | 428,234 | 506,572 | 338,253 | 460,156 | 410,053 * | 501,629 * 358,037* |
* Because brand sales for the full-year 2009 have been changed to correct the previously reported figures, quarterly brand sales for 2009 have been updated. Previously reported figures: Q2 2009 = SEK 385,637, Q3 2009 = SEK 566,423, Q4 2009 = SEK 422,121.
Condensed
| SEK thousands | January–March 2011 |
January–March 2010 |
April 2010– March 2011 |
Full-year 2010 |
|---|---|---|---|---|
| Net sales | 11,466 | 12,019 | 45,265 | 45,818 |
| Cost of goods sold | –49 | –34 | –384 | –368 |
| Gross profit | 11,417 | 11,985 | 44,881 | 45,450 |
| Distribution expenses | –10,771 | –9,537 | –45,977 | –44,742 |
| Administrative expenses | –4,143 | –3,668 | –17,683 | –17,208 |
| Development expenses | –1,658 | –1,467 | –7,073 | –6,883 |
| Operating profit/loss | –5,155 | –2,687 | –25,852 | –23,383 |
| Dividend from subsidiary | -- | – | – | 100,000 |
| Net financial items | –2,761 | 513 | –11,104 | –7,829 |
| Profit before tax | –7,916 | –2,174 | –36,956 | 68,788 |
| Appropriations | – | – | 818 | 818 |
| Tax | – | 572 | 7,440 | 8,011 |
| Profit for the period | –7,916 | –1,602 | –28,698 | 77,617 |
| Other comprehensive income | – | – | – | – |
| Total comprehensive income for the period | –7,916 | –1,602 | –28,698 | 77,617 |
Condensed
| SEK thousands | March 31 2011 |
March 31 2010 |
December 31 2010 |
|---|---|---|---|
| Non-current assets | |||
| Intangible non-current assets | 1,570 | 1,784 | 1,686 |
| Tangible non-current assets | 2,498 | 4,071 | 2,830 |
| Shares in Group companies | 321,227 | 316,635 | 320,771 |
| Total non-current assets | 325,295 | 322,490 | 325,287 |
| Current assets | |||
| Receivables from Group companies | 53,908 | 83,782 | 47,801 |
| Current receivables | 5,717 | 7,658 | 4,597 |
| Short-term investments | 37,096 | – | 35,567 |
| Cash & cash equivalents | 166,421 | 125,481 | 181,742 |
| Total current assets | 263,142 | 216,921 | 269,707 |
| Total assets | 588,437 | 539,411 | 594,994 |
| Equity and liabilities | |||
| Equity | 181,258 | 213,136 | 189,174 |
| Untaxed reserves | 6,540 | 7,359 | 6,540 |
| Amounts owed to credit institutions | – | 125,000 | – |
| Amounts owed to Group companies | 385,785 | 179,320 | 383,256 |
| Accounts payable | 2,067 | 4,298 | 2,913 |
| Other current liabilities | 12,787 | 10,298 | 13,111 |
| Total equity and liabilities | 588,437 | 539,411 | 594,994 |
| Condensed | |||
|---|---|---|---|
| SEK thousands | January–March 2011 |
January–March 2010 |
Full-year 2010 |
| Opening balance | 189,174 | 214,738 | 214,738 |
| New share issues | – | – | – |
| Dividend | – | – | –125,742 |
| Group contributions | – | – | 30,611 |
| Tax effect of Group contributions | – | – | –8,050 |
| Total comprehensive income for the period | –7,916 | –1,602 | 77,617 |
| Closing balance | 181,258 | 213,126 | 189,174 |
Net sales less cost of goods sold divided by net sales.
Operating profit as a percentage of net sales.
Profi t margin Profit before tax as a percentage of net sales.
Equity/assets ratio Equity as a percentage of total assets.
Profit after financial items (over a rolling 12-month period) plus financial expenses as a percentage of average capital employed.
Net profit (over a rolling 12-month period) 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.
The Board of Directors and the President certify that the interim report provides a true and fair overview of the operations, financial position and results of the Parent Company and the Group and describes the material risks and uncertainties faced by the Parent Company and the companies in the Group.
Fredrik Lövstedt Chairman
Nils Vinberg Vice Chairman
Monika Elling Board Member
Kerstin Hessius Board Member
Fabian Månsson Board Member
Mats H Nilsson Board Member
Vilhelm Schottenius Board Member
Michael Storåkers Board Member
Arthur Engel President and CEO
The Group, which owns the Björn Borg trademark, is focused on underwear. Through licensees it also offers clothing, footwear, bags, eyewear and fragrances. Björn Borg products are sold in around twenty markets, of which Sweden and the Netherlands are the largest. 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 2010 amounted to about SEK 1.7 billion at the consumer level, excluding VAT. Group net sales amounted to SEK 536 million in 2010, with 100 employees. The Björn Borg share is listed on NASDAQ OMX Nordic in Stockholm since 2007.
The interim report January–June 2011 will be released on August 23, 2011. The interim report January–September 2011 will be released on November 10, 2011.
For further information, please contact: Arthur Engel, President and CEO, telephone +46 8 506 33 700 Magnus Teeling, 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 4, 2011 at 7:30 am (CET).
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