Business News

United Labels sees reduction in revenue and higher earnings

Wednesday 22. May 2013 - Targeted reduction in revenue following focus on core business fields

Quarterly earnings within expectations and up on previous year
Restructuring programme and cost streamlining take effect
United Labels AG (ISIN: DE 0005489561) has closed the first quarter of the current financial year with revenue totalling €5.7 million (prev. year: €11.5 million). The year-on-year decline in revenue is attributable to the company’s focus on core business fields with higher contribution margins and the associated discontinuation of revenue flows from unprofitable areas of business. Within this context, the amalgamation and restructuring of the United Labels sites in Italy, Belgium, France and Germany were a key factor. Additionally, sales generated in Spain fell to €2.5 million (prev. year: €3.2 million) as a result of the country’s economic climate. The new e-commerce activities of United Labels, managed in cooperation with the subsidiary Elfen Service GmbH, got off to a good start.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) were in positive territory at €36 thousand. The quarterly loss was also scaled back from €-0.3 million to €-0.2 million. At the same time, the cost reduction programme initiated in 2012 had a significant impact on business performance. Having implemented the full range of optimisation measures announced by the company, United Labels is looking to make cost savings of around €3.0 million per annum in 2013 and 2014. In cooperation with its subsidiary Elfen Service, the company will be taking an equally focused approach to executing its projects planned within the area of B2C operations and the expansion of value creation processes. These projects are to be completed over the course of the second quarter.