EANS-Adhoc: Valora Holding AG
Accentuated decline in the press market and
increased pressure from parallel imports in Switzerland prompts new appraisal of
Valora Group´s overall 2011 objectives - Valora Retail meanwhile is gaining
market share in a ...
24.10.2011 – 18:18
-------------------------------------------------------------------------------- ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- 24.10.2011 Accentuated decline in the press market and increased pressure from parallel imports in Switzerland prompts new appraisal of Valora Group´s overall 2011 objectives - Valora Retail meanwhile is gaining market share in a challenging environment. The continuing decline in the market for press products became more accentuated during the third quarter of 2011, resulting in significantly lower sales. Despite the extensive adjustments the division has made to its cost structures and its expansion into new business areas, it is now evident that Valora Services´ results for the current financial year will no longer be able to compensate for the shortfall in press turnover of 10 percent it has experienced so far. In addition, the current level of exchange rates between the Swiss franc and the euro mean that the Valora Trade Switzerland business area now has to contend with a high level of parallel imports by the retail sector and a general reticence in consumer spending. This is a second factor weighing on the Valora Group´s overall sales. Valora´s Retail division, conversely, continues to perform well. Although overall retail market sales volumes have contracted significantly, particularly in Switzerland, where they declined by more than 4 percent during the third quarter of 2011, Valora Retail Switzerland achieved year-on-year sales growth of above 2 percent in the same period, thus demonstrating that it has so far successfully overcome current market challenges. Declining press revenues have been more than made up for by the increase in food sales. Progress achieved through initiatives from the "Valora 4 Growth" strategy programme, such as extending the agency business model and the introduction of a range of new service offerings, is also making a positive contribution to the Retail division´s performance. Given the substantial adverse factors affecting the results of its Services and Trade divisions, Valora now expects to achieve an operating profit (EBIT) for the current financial year of some CHF 70 million, instead of an EBIT result of at least CHF 81 million communicated hitherto. Valora will review its 2012 targets when the 2011 results have been finalised, based on the assumption that trading conditions next year are unlikely to improve significantly and taking into account the further acquisitions projected as part of the Group´s growth strategy. As Thomas Vollmoeller, the Valora Group´s CEO, puts it, "We remain committed to our growth strategy and the medium-term profitability objectives inherent in it. Although the performance of the press market is unsatisfactory for us, we remain confident that we will achieve our objective of generating an EBIT margin of three percent next year." Further inquiry note: Investor Relations: Tel: +41 58 789 12 20 Mladen Tomic E-Mail: mladen.tomic@valora.com Media Relations: Tel: +41 58 789 12 01 Stefania Misteli E-Mail: stefania.misteli@valora.com end of announcement euro adhoc -------------------------------------------------------------------------------- issuer: Valora Holding AG Hofackerstrasse 40 CH-4132 Muttenz phone: +41 61 467 20 20 FAX: +41 58 789 12 12 mail: info@valora.com WWW: www.valora.com sector: Retail ISIN: CH0002088976 indexes: stockmarkets: stock market: BX Berne eXchange, Main Standard: SIX Swiss Exchange language: English