Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG

Earnings Release • Aug 4, 2004

News Details

Corporate | 4 August 2004 15:17

Ludwig Beck AG: Sales in first half-year 2004-Continuingly positive sales trend

Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– LUDWIG BECK AG: Continuingly positive sales trend – Sales in 1st half-year 2004 significantly up on last year’s figures. Munich, 4 August 2004. The first six months of 2004 saw the LUDWIG BECK Group (ISIN DE0005199905) continue its positive sales trend, with a gross consolidated Group turnover of EUR 43.6 million; this was 8.0% up on last year’s figure of EUR 40.4 million. On sales area adjusted basis too, turnover rose by 0.6% in the first half-year. LUDWIG BECK Vertriebs GmbH accounted for sales of EUR 4.4 million as opposed to EUR 3.2 million in the same period last year. This means that LUDWIG BECK is succeeding in bucking the trend in the sector by continuing its positive development in terms of sales: In contrast, according to the German trade journal “TextilWirtschaft”, Germany’s textile trade saw sales drop by an average 5% over the first half of 2004. Gross turnover less VAT and material costs rose to EUR 17.5 (2003: 16.0) million the first half of this year, while the cost-income ratio (costs balanced against the corresponding income) rose by 0.8% to 46.7% from the previous year’s figure of 45.9%. At EUR 0.9 (2003: 1.1) million, earnings before tax, interest, depreciation and amortization (EBITDA) as at 30 June 2004 were already well into the positive zone. In this respect it should be noted that, for market- induced reasons, the results achieved by retail businesses are negative in the first three quarters of each year. The number of employees (not including trainees) rose to 570 from last year’s figure of 496, this increase being due to the opening of new branches. Given the signs of a commencing, if slight economic recovery, a slight upward trend in consumer behaviour looks a realistic prospect for the second half of the year. In spite of the continuingly difficult situation in the trade and in terms of competition, LUDWIG BECK is cautiously optimistic, trusting in its own successful trading based on traditional strengths and the company’s attractive product range concepts, superior service, and target group-oriented methods of presentation and approach to attain optimum customer loyalty by meeting their core needs and requirements. The unique positioning concept under the motto “Emporium of the senses” will continue to be promoted in the Group’s flagship store at its prime Marienplatz location in Munich. September and December will see two emotionally presented, cross-store themed campaigns that are sure to achieve high footfall figures and positive customer resonance. Substantial improvement of the EBIT (earnings before interest and taxes) remains a priority objective, and, together with further upward sales figures, we expect the package of measures already commenced at the beginning of the year – and aimed at raising revenues and cutting costs in the order of a total EUR 1 million – to increase the level of earnings considerably. On the basis of its medium and long-term strategy of ongoing consolidation and enhancement of its competence in terms of quality, product spectrum and service, LUDWIG BECK will continue to buck the current market trend and – even without resorting to aggressive discount wars – successfully meet the challenge of increasingly tough competition. The detailed Interim Report will be appearing in printed form on 10 August 2004, and is being published in parallel on the Internet at http://www.ludwigbeck.de . Contact: Jens Schott (Investor Relations) Tel. +49 89 23691-798, Fax +49 89 23691-600 Barbara Gruber (Press Relations) Tel. +49 89 23691-669, Fax +49 89 23691-606 Key figures of the Ludwig Beck Group in EUR million 2004 2003 Gross turnover 43,6 40,4 VAT and material costs 17,5 16,0 EBITDA 0,9 1,1 EBIT -0,9 -0,7 Deficit for the period -1,6 -1,5 Workforce 570 496 end of message, (c)DGAP 04.08.2004 ——————————————————————————– WKN: 519990; ISIN: DE0005199905; Index: Listed: Amtlicher Markt in Frankfurt (Prime Standard) und München; Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg und Stuttgart 041517 Aug 04