Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG

Earnings Release • Feb 21, 2002

News Details

Corporate | 21 February 2002 17:12

Ludwig Beck am Rathauseck english

Serious economic slump also affects Ludwig Beck: sales and earnings below prece Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– Serious economic slump also affects Ludwig Beck: sales and earnings below preceding year. dividend nevertheless remains at EUR 0.87. Munich, 20th February 2002. With gross sales of EUR 98.0 (100.3) mill., the Ludwig Beck Group (WKN 519 990) just failed to achieve the preceding years figure by 2.4%. Nevertheless, an EBIT-margin of 6.1% meant that a high level of earnings was again achieved. This is all the more remarkable in that retail trade operators are reporting sharp drops in sales and earnings in the currently weak economic phase. This means that LUDWIG BECK AG continues to be one of the highest earning operations in the German retail trade. After all forecasts for 2001 were retracted in the course of the year the GDP still achieved an increase in real terms of 0.6%. Sales in the German retail trade virtually collapsed, particularly in the second half of the year. LUDWIG BECK AG was unable to escape this trend either, and registered a drop of 2.4%. Trends in individual commodity areas varied greatly. The textile sectors have suffered particularly from consumer resistance, while the cosmetic sector, which is benefiting from the ongoing strong wellness trend, achieved a growth in sales of 24% to a current EUR 4.8 (3.9) million. On 5th September the Augsburg branch was opened on schedule with 1,300 sq. m of sales area. The branch in Hamburg with 240 sq. m was successfully sub-let as it no longer fitted in with the corporate strategy. The subsidiary, ludwigbeck-online GmbH, which bundles eCommerce and mail-order activities for the music sector, has developed positively on an ongoing basis and achieved sales of EUR 0.4 (0.1) mill. After initial technical difficulties and a comprehensive relaunch with re-start on 23rd August, the Internet shop operation has been stable and is increasingly gaining users and customers. Alongside LUDWIG BECK AG and ludwigbeck-online GmbH, the consolidated financial statement includes for the first time Ludwig Beck Beteiligungs-GmbH and Ludwig Beck Vertriebs-GmbH, which were established in 2001. Ludwig Beck Vertriebs-GmbH, which bundles together all franchise-activities, only incurred start-up costs. Sales will not commence here until 2002. Ludwig Beck Beteiligungs-GmbH handles real estate holdings. In 2001 this company bought a majority holding in Feldmeier GmbH & Co. Betriebs KG and its general partner. Feldmeier GmbH & Co. Betriebs KG owns the Ludwig Beck headquarters location on the Marienplatz in Munich. The consolidated financial statement shows an operating result (EBIT) of EUR 5.2 (6.1) mill. and hence an EBIT-margin of 6.1%. The EBIT includes the value adjustment made at ludwigbeck-online GmbH of EUR 0.4 mill. This is particularly satisfactory in view of the overall negative economic situation. This means that Ludwig Beck AG continues to be one of the highest earning operations in the German retail trade. This result became possible as the board had already introduced a cost-cutting programme at an early stage, producing savings of approximately EUR 2.0 mill. Finance Director Dieter Münch: “Especially in times of economic difficulty a profit-orientated corporate policy is a guarantee of stability in earnings”. The continuingly high capital ratio is very satisfactory and, even after the investment in property it is still at 42.3 (57.5)%. In view of the continuingly good earnings situation of LUDWIG BECK AG the board regards a dividend of EUR 0.87 (0.87) per individual share certificate as reasonable. Loss carryover means that the dividend will still be tax-free for the investor. This produces a net yield of 7.25% against the year-end price of EUR 12. The current financial year 2002 continues to be characterised by difficulties in the economy. Consumer resistance, partly caused by the switch to the euro at the beginning of the year, is unlikely to improve on a sustained basis. Companies with a secure financial foundation and a clear corporate strategy are well-positioned. Ludwig Beck is clearly positioned in terms of its service concept, a precisely defined target-group strategy, quality and innovation in its range and a high degree of acceptance among its customers. LUDWIG BECK is using this as a basis for the ongoing success of the company to cope with a difficult economic and sectoral situation. Board Chairman Reiner Unkel: “We shall utilise the promising consumer trend towards health and personal hygiene, and in the autumn we shall be opening a “wellness shop” with a concept in terms of range and services that is so far unique”. To achieve this the lingerie department will be completely renovated as far as the cosmetics and lingerie ranges are concerned, extended by about 250 sq. m and the ranges realigned. A crucial growth factor is Ludwig Beck Vertriebs-GmbH, which was established on 10th August 2001. It will sell systems of leading brands that are established and well-proven in the market place in its own shops as a franchisee. The board is striving for a growth in sales in the coming financial year in spite of the weakness in the economy. LUDWIG BECK will maintain its successful development in spite of the difficult conditions. The final financial statement for financial year 2001 will be presented at the press briefing on annual results on 3rd April 2002. The annual shareholders meeting will take place in Munich on 17th May 2002. Contact: Lothar Fiss, Investor Relations Tel. +49(0)89 23691-663, Fax +49(0)89 23691-600 end of message, (c)DGAP 21.02.2002