United Labels AG

Earnings Release • May 15, 2012

News Details

Ad-hoc | 15 May 2012 09:13

United Labels AG focuses on higher-margin customers

United Labels AG / Key word(s): Interim Report

15.05.2012 09:13

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Ad hoc announcement by United Labels AG dated 15 May 2012
ISIN: DE 0005489561, WKN: 548956, Ticker Symbol: ULC

• Significant improvement in margin

• Higher revenue from Special Retail

• Albert Hirsch joins Management Board

Münster, 15 May 2012 - United Labels AG (ISIN: DE 0005489561), one of
Europe's leading producers and distributors of cartoon-based merchandise
sold under licence, recorded Group revenue of EUR11.5 million in the first
quarter of the current financial year (prev. year: EUR13.9 million). In
spite of the year-on-year contraction in revenue, United Labels AG was able
to achieve one of its prime objectives for 2012 and halt the downward
spiral to have impacted the Special Retail segment over the course of 2011.
In this segment, sales revenue increased slightly from EUR3.2 million to
EUR3.3 million, while earnings rose from EUR-0.1 million to EUR0.1 million.
The Key Account segment, by contrast, was faced with a contraction in sales
revenue. Within this area, sales revenue fell from EUR10.7 million to
EUR8.1 million. However, earnings attributable to this segment rose by 14%
to EUR0.6 million.

The Group's loss before interest and taxes stood at EUR0.1 million, an
improvement on the loss of EUR0.5 million recorded in the same period a
year ago. The consolidated net loss for the first quarter was EUR0.3
million, which represents an improvement by EUR0.3 million compared to the
figure posted for the first quarter of the previous financial year (prev.
year: loss of EUR0.6 million).

The profit margin for the first quarter increased by 4.1 percentage points
compared to the same period a year ago, rising to 27.5%. One of the Group's
main priorities for the current financial year is to drive its profit
margin upwards. To this end, the company will be focusing on large-account
customers operating with a product portfolio that is positioned in the
premium price segment.

The respective foreign subsidiaries performed as follows in the period
under review: while Spain (+3%), Belgium (+19%) and Hong Kong (+246%)
recorded growth in sales revenue, the companies in Italy (-60%) and France
(-27%) saw business contract during the first quarter. In the wake of the
financial crisis, the level of uncertainty among end consumers was
particularly visible in Italy.

Revenue generated from sales at the Group's airport shops rose by 16% year
on year to EUR1.5 million. Earnings within this area improved from EUR-0.1
million to EUR0.1 million.

Efforts to extend the existing business model by introducing a new
e-commerce category remain on track. A case in point: the new subsidiary
Elfen Service GmbH is currently designing an internet platform for the
B2C-based sale of toys and licensed merchandise. The first revenue streams
are expected from August. In recognition of the strong emphasis on
e-commerce, Albert Hirsch, Managing Director of Elfen Service GmbH, is to
oversee this area of the business as a new member of the Management Board
of United Labels AG.

The report for the first quarter of 2012 can be downloaded as follows:
http://www.unitedlabels.com/investor-relations/finanzberichte

For further information, please contact the following member of staff:
United Labels AG
Thorsten Laumann
Head of Corporate Communication
Gildenstraße 6
48157 Münster
Tel.: +49 (0) 251-3221-406
Fax: +40 (0) 251-3221-960
investorrelations@unitedlabels.com

15.05.2012 DGAP's Distribution Services include Regulatory Announcements,
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Language: English
Company: United Labels AG
Gildenstr. 6
48157 Münster
Germany
Phone: +49 (0)25 132 21-0
Fax: +49 (0)25 132 21-999
E-mail: investorrelations@unitedlabels.com
Internet: www.unitedlabels.com
ISIN: DE0005489561
WKN: 548956
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart

End of Announcement DGAP News-Service

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