United Labels AG: Preliminary results for FY 2017
Positive trend and sustained surge in earnings
- Group sales at EUR30.3 million
- Operating profit (EBITDA) up significantly by EUR2.1 million to EUR2.5 million
- New merchandising themes produce steady growth in Special Retail segment
Münster, 19 February 2018. United Labels AG (ISIN: DE 0005489561, WKN: 548956) recorded consolidated revenue of EUR30.3 million (prev. year: EUR32.4 million) in the 2017 financial year. While the share of revenue generated from sales to discount retailers was scaled back as planned, revenue attributable to the high-margin Special Retail segment expanded significantly, particularly in Germany. As a result, the gross profit margin improved by 6.7 percentage points to 35.4% (prev. year: 28.7%). The increased profit margin together with largely unchanged cost structures saw Group earnings before interest, taxes, depreciation and amortisation (EBITDA) expand more than sixfold to EUR2.5 million (prev. year: EUR0.4 million). Earnings before interest and taxes (EBIT) surged to EUR1.9 million (prev. year: EUR-0.4 million) and was thus within the guidance range for earnings announced at the beginning of the financial year. Group profit for the financial year improved to EUR0.4 million (prev. year: EUR-1.8 million). Evidence of this positive performance was seen throughout the year as a whole. In Germany, in particular, business within the Special Retail segment developed very well with regard to sales from "Pummeleinhorn" and "Diddl" merchandise. The company attracted a number of new specialty retailers and retail chains within these specific areas and significantly expanded its product range. By the end of the year, the number of specialty retailers supplied by the Group had risen to around 700, covering more than 1,000 stores in total.
All operating subsidiaries within the Group recorded a profit in fiscal 2017. Established in 2012, the start-up company Elfen Service GmbH developed particularly well; it handles the Group's e-commerce B2C business. Building on the significant upturn in revenue in the final quarter of the financial year just ended, this company completed the financial year in positive earnings territory for the first time. Against this background, United Labels AG acquired the remaining 20% interest in the entity at the beginning of 2018 (ad hoc announcement of 12 January 2018).
Further new merchandise themes are planned for 2018, in addition to an expansion of existing product ranges. Having signed a new cooperation agreement with the German Football Association (DFB), the company presented a selected range of products featuring the stars of the German national team at the first 2018 trade fairs for the placement of orders. Merchandise from this new theme is to be dispatched in Q1/Q2 2018, which also applies to the first products from the "Ralph Ruthe" licence and a new Snoopy collection designed for specialty retailers. Additionally, the company is planning to extend its reach by marketing the entire range of specialty retail products to other countries in Europe. The full annual financial statements, including the outlook for 2018 and further details, are to be published at the end of March as part of the annual report.http://www.unitedlabels.com/investor-relations/finanzberichte
Further information: United Labels AG - Investor Relations - Gildenstraße 6, 48157 Münster, Tel.: +49 (0) 251-3221-0, Fax: +49 (0) firstname.lastname@example.org
19-Feb-2018 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: 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: email@example.com Internet: www.unitedlabels.com ISIN: DE0005489561 WKN: 548956 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange End of Announcement DGAP News Service
655491 19-Feb-2018 CET/CEST