Beter Bed: revenue remains unchanged in 2012; writedown in Spain puts additional pressure on net profit

* Net revenue of EUR 397.3 million in 2012, in line with 2011 (EUR 397.0 million). * Writedown on assets in Spain totalling EUR 6.0 million net (no cash flow effect). * Non-recurring expenses for reorganisations and store closures of EUR 2.5 million in 2012. * Operating profit (excluding writedown in Spain and the non-recurring expenses) decreases from EUR 38.3 million (9.6% of revenue) in 2011 to approximately EUR 31.4 million (7.9% of revenue) in 2012...

• Net revenue of EUR 397.3 million in 2012, in line with 2011 (EUR 397.0 million).
• Writedown on assets in Spain totalling EUR 6.0 million net (no cash flow effect).
• Non-recurring expenses for reorganisations and store closures of EUR 2.5 million in 2012.
• Operating profit (excluding writedown in Spain and the non-recurring expenses) decreases from EUR 38.3 million (9.6% of revenue) in 2011 to approximately EUR 31.4 million (7.9% of revenue) in 2012.
• Net profit excluding writedown in Spain and non-recurring expenses totals approximately EUR 22.1 million in 2012 (2011:
  EUR 28.0 million).
• Growth in number of stores in 2012: +32, of which +5 stores are opened in the fourth quarter.

Revenue decreased by 6.6% to EUR 100.8 million in the fourth quarter of 2012. The decrease in the two main markets, namely the Netherlands and Germany, was 11% and 3% respectively. An increase in revenue was only achieved in Belgium and Switzerland in the fourth quarter.

 

Revenue performance at comparable stores fell by 10.5% in the fourth quarter of 2012 (decrease for full year 2012: 4.7%). Revenue performance at comparable stores deteriorated in comparison to the third quarter in all the countries with the exception of Belgium.

 

With respect to Matratzen Concord in Germany, the comparative basis is difficult for the fourth quarter due to the strong results realised in the previous year. Revenue performance at comparable stores fell by 8% in the fourth quarter of 2012 in Germany (fourth quarter 2011: +12%). Revenue in the fourth quarter decreased by 3% in total (fourth quarter 2011: +16%) due to the growth in the number of stores.

 

Revenue performance at comparable stores in the Netherlands dropped by 13% in the fourth quarter, while revenue decreased by 11%.

 

Net revenue of EUR 397.3 million was realised for the full year 2012 (2011: EUR 397.0 million). The change in revenue per country for the full year 2012 compared to 2011 is as follows:

 

Germany             +3%

Netherlands          -5%

Spain                 -12%

Switzerland        +10%

Austria                +4%

Belgium             +34%

 

A total of 128 stores were opened (2011: 123 stores) and 96 stores were closed (2011: 53 stores) in 2012. The relatively high number of closures in 2012 is the result of the closure of all the stores in Poland, the discontinuation of the MAV formula in Germany and the closure of the poor-performing stores in mainly the Netherlands, Belgium and Spain. The number of stores grew on balance by 32 from 1,187 to 1,219. A net total of five stores were opened in the fourth quarter of 2012 (25 openings and 20 closures).

 

Writedown in Spain

The market in Spain has now declined by more than 50% since 2008 due to a continuing fall in consumer confidence. The results of El Gigante del Colchón are consequently also disappointing and, despite all the cost-saving measures that have been taken, there continues to be uncertainty regarding the outlook for these activities.

 

El Gigante del Colchón has now also been entirely repositioned from the original 'full service' concept into a 'cash & carry' retail format. As a result of this, the company decided in the fourth quarter of 2012 to take an impairment of EUR 4.9 million in total for intangible fixed assets/goodwill (EUR 3.8 million) and tangible fixed assets (EUR 1.1 million) linked to these activities. In accordance with the IFRS guidelines, these impairments are charged to the operating profit.

 

As a result of the current market conditions, an impairment of EUR 1.1 million was posted for the Spanish tax credits. This means the effect of the accounting impairments for Spain amount to a net profit level of in total EUR 6.0 million negative.

 

The share of the Spanish activities in the consolidated revenue amounted to 3% in 2012.

 

The impairments do not have any impact on the liquidity position and the company continues to more than fulfil the covenants agreed with the financiers.

 

Non-recurring expenses in 2012

The company charged EUR 2.5 million in non-recurring expenses to operating profit in 2012 for the closure of stores in Poland, reorganisation expenses in Spain and the Netherlands and for the closure of stores in Spain, the Netherlands, Belgium and Germany (MAV).

 

Outlook

Net profit in the fourth quarter is expected to amount to approximately EUR 0.8 million (Q4 2011: EUR 10.2 million). The effect of the impairments relating to Spain amounts to EUR 6.0 million in the fourth quarter.

 

The company expects to have achieved operating profit of approximately EUR 23.9 million for the full year 2012 (2011: EUR 38.3 million) including the writedown in Spain and non-recurring expenses. This means operating profit will be 37% lower than last year. The decrease in operating profit amounts to 18% when adjusted for the impairments involving the Spanish activities and the aforementioned non-recurring expenses.

 

Net profit (after writedown on Spain and non-recurring expenses) is expected to amount to approximately EUR 14.3 million for the full year 2012 (2011: EUR 28.0 million). This represents a decrease of EUR 13.7 million (-49%) compared to 2011.

 

The final figures for 2012 will be published on 8 March 2013. The results stated in this press release have not been audited.

 

Profile

Beter Bed Holding N.V. operates in the European bedroom furnishings market. Its activities include retail trade through a total of 1,219 stores at the end of 2012 that operate via the chains Beter Bed (active in the Netherlands and Belgium), Matratzen Concord (active in Germany, Switzerland, Austria, the Netherlands and Belgium), El Gigante del Colchón (active in Spain), BeddenREUS and Slaapgenoten (both active in the Netherlands) and Schlafberater.com (active in Germany). Beter Bed Holding is also active in the field of developing and wholesaling branded products in the bedroom furnishing sector in the Netherlands, Germany, Belgium, Spain, Austria, Switzerland, Turkey and the United Kingdom via its subsidiary DBC International. Beter Bed Holding N.V. achieved net revenue of EUR 397.3 million in 2012. More than 65% of the group's net revenue is realised outside the Netherlands. The company has been listed on the NYSE Euronext Amsterdam since 1996 and is included in the Amsterdam Small Cap Index.

 

For more information, please contact: Ton Anbeek, Chief Executive Officer
Tel. +31 (0)413 338819 / Fax +31 (0)413 338829 / Mob. +31 (0)6 53662838
E-mail: ton.anbeek@beterbed.nl  / Website: www.beterbedholding.nl

 

Please click on the link below for the Pdf of the press release.

 

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