Packaging

United Labels AG: Earnings for first half impacted by exceptional charges

Monday 03. September 2012 - Group sales revenue totals EUR 25 million

Realignment of business model
United Labels AG (ISIN: DE 0005489561) generated consolidated revenues of EUR 25.0 million in the first six months of the 2012 financial year (prev. year: EUR 29.6 million). In the second quarter of 2012 alone, revenue amounted to EUR 13.5 million (prev. year: EUR 15.8 million).
As a result of exceptional charges, the loss for the first six months totalled EUR 14.4 million (prev. year: loss of EUR 0.02 million).
Alongside the additional liabilities reported in the ad hoc announcement of 12 July 2012, remeasurements were required in the period under review. These remeasurements gave rise to provisions for write-downs of usage rights and inventories as well as a necessary correction to deferred taxes totalling EUR 4.1 million in 2012.
A so-called “procédure de sauvegarde”, i.e. a debtor safeguard procedure under French law, was initiated in respect of the assets of the French investee Embassy SAS, Roubaix, in which United Labels AG holds an indirect interest of 45% via Groupe Montesquieu. In view of this, the investment in Groupe Montesquieu and receivables from Embassy SAS as well as call options and goodwill were written down, leading to a charge of approx. EUR 6.3 million.
In response to these exceptional factors, United Labels AG will realign and optimise its existing fields of business, with the express purpose of returning to profit- and growth-oriented operations in the future. In parallel with its optimisation measures relating to the current business model, the company will reassess its Group structure and carry out divestments with regard to those subsidiaries that no longer fulfil the criteria of viable inclusion within the context of the Group’s future market alignment. As part of the optimisation measures, the sites in France, the United Kingdom and Italy are to be closed. Additionally, the product range and assortment are to be streamlined, the licence portfolio is to be redefined, corporate structures are to become significantly leaner and inventories are to be gradually scaled back.
The company will continue to drive its expansion of end-consumer business as part of its NextGen strategy, supported by the favourable performance of the seven airport shops and the newly established subsidiary Elfen Service GmbH. Operations of the e-commerce platform for toys and media products newly created by Elfen Service in 2012 are scheduled to commence in autumn.