Business News
United Labels AG: Optimisation programme after exceptional charges
Friday 30. November 2012 - Group revenue totals 34.3 million
Launch of e-commerce platform elfen.de
United Labels AG (ISIN: DE 0005489561) generated consolidated revenues of 34.3 million in the first nine months of the 2012 financial year (prev. year: 43.7 million). The year-on-year decline was attributable primarily to the company’s Key Account segment, which saw sales fall to 22.5 million, while the Special Retail segment managed to lift sales to 11.8 million.
The loss before interest and taxes amounted to 10.5 million (prev. year: loss of 0.3 million) and the loss for the period, i.e. after taxes, stood at 16.6 million (prev. year: profit of 0.3 million). The decline in earnings was attributable mainly to exceptional charges, as discussed in the report on the first half, such as the write-down of all carrying amounts relating to the equity investment in Groupe Montesquieu, France, provisions for write-downs of usage rights and inventories as well as corresponding adjustments to deferred taxes.
In response to these exceptional charges, United Labels AG has initiated a stringent optimisation programme that is aimed at streamlining its costs by around 3.0 million in the coming year alone. The company intends to pool the activities of its subsidiaries in Belgium and France. At the same time, the company’s operations in Spain will focus on key account business and airport shops. In future, the specialty retail business in Italy will be managed by the company’s office in Spain. In parallel, the company has introduced leaner staffing structures at all sites for the purpose of reducing costs. The Management Board will contribute to the current cost-saving measures by forgoing specific components of its remuneration package until 2014.
In addition to concentrating on premium-quality, high-margin textiles within the key account category, NOS giftware business in Germany and abroad, and the launch of new airport stores, the Group will also be focusing on e-commerce operations in the coming financial year.
The new e-commerce platform operated by Elfen Service GmbH, featuring the online shop www.elfen.de, was launched in October. It already includes over 30,000 items for children – from more than 90 manufacturers of branded goods. In the coming year, the number of products offered on the website is to be extended to over 500,000. In line with the company’s plans, the first media and trading partners are to integrate this shop into their own online operations from the beginning of 2013 onward.