euro adhoc: Calida Holding AG
quarterly or semiannual financial statement /
Significant increase in sales and profit
at Calida in the first half of 2007
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
quaterly report
27.07.2007
The positive development of the Calida Group continued in the first half of 2007. Sales and profit were increased. With its positive dynamism of sales, the Calida brand has strengthened its position in all its markets and succeeded in gaining new market shares. As expected, the first half year at Aubade was a period of consolidation.
The Calida Group recorded a growth in sales of 6.0% to CHF 104.7 million, compared with a decline in sales of 3.4% in the same period of the previous year, adjusted for acquisitions. Taking the acquisition of Aubade into account, the half-year sales in 2006 had risen by 61%. The operating profit EBIT improved by 18.7% to CHF 6.8 million (2006 comparative period: CHF 5.7 million), and profit rose by 62.3% to CHF 5.8 million (2006 comparative period: CHF 3.6 million). The negative cash flow at Calida, which always occurs in the first half of a year for seasonal reasons, was CHF -10.2 million, compared with CHF -1.1 million in the same period of the previous year. On the one hand, this was due to settlement of the redundancy severance pay that had been provided in the previous year for the factory closure in France. On the other hand, the move of sales from the first into the second quarter led to a higher level of accounts receivable at the end of the half-year. In addition, and in order to ensure readiness to deliver in the third quarter, stocks of goods were increased for both brands.
Dynamic Calida brand
In the reporting period, the Calida brand was able to maintain the positive dynamism of sales. Calida achieved a sales growth of 10.8% to CHF 65.6 million (previous year: 2.3% to CHF 59.3 million). In this year too, growth is attributable to the good shape of the export markets, particularly the important German market. In Switzerland, where Calida holds a market share of more than 30%, sales grew by 3.4%.
Apart from the strong growth of the export markets, the Calida Stores are decisively responsible for the positive development of sales. In the first half-year, new Calida Stores were opened in Bern, Basel, Vevey, Davos and Tübingen.
The consistent modernisation of the Calida collections in recent years has made a significant contribution to the overall dynamism. The continual cultivation and renewal of our standard product lines is now also beginning to bear fruit in terms of sales.
Consolidation at Aubade
For the Aubade brand, the first half-year was a further period characterised by consolidation. As expected, sales developed slightly negatively in comparison with the same period of the previous year (-5.4%). In March, the restructuring of production in France was completed as planned. At the former manufacturing location in the south-west of France, investments of more than CHF 1.5 million are now being made in the infrastructure and the IT systems in order to enhance the efficiency and the capacity of this central logistical facility. At Aubade, the development and stabilisation of the management structures as well as the speedy development of the retail business continue to have top priority. Within a year, nine Aubade Stores were opened, three in Paris and one each in Toulouse, Strasbourg, Marseilles, Grenoble and Lyon, as well as a further store outside France, in Moscow. By the end of the year, the opening of a further eight stores is planned.
Cross-market measures
Also important are the measures we have initiated across the markets in order to make use of synergy potential at Group level and to increase efficiency within the Group.
An example is that international markets are increasingly being served for both brands with a joint infrastructure and management. Agencies or subsidiaries which are active for both brands are located in the USA, Italy, Norway and, as of recently, in Sweden too. The Aubade distribution company responsible for northern Europe has relocated its domicile to Switzerland. From here, the markets in Switzerland, Germany, Austria and Scandinavia are being served, using Calida's administrative infrastructure.
Confirmed outlook for the full year 2007
Based on the current dynamism of sales and the positive pre-order situation for fall/winter 2007 at Calida as well as the stabilising sales situation at Aubade, we believe that the objective formulated at the beginning of the year for the financial year 2007, namely "Modest growth in sales and profitability" will be achieved. It would mean that for the sixth consecutive year, the Calida Group achieves an improvement in its results.
The half-year report can be called up from 27.07.2007 at 7.00 a.m. under www.calida.com/ Investor Relations / Financial Reports
end of announcement euro adhoc 27.07.2007 07:00:00
Further inquiry note:
Andreas Lindemann, CFO
Tel. +41 (0)41 925 42 48
Branche: Textiles & Clothing
ISIN: CH0009018133
WKN: 9018133
Index: SPI, SPIEX
Börsen: SWX Swiss Exchange / official market