Muttenz, February 5, 2015
Media release - Medienmitteilung - Communiqué de presse
Valora to match 2014 guidance - Selling process of Valora Trade opens up new possibilities for division
- Valora's 2014 EBIT in line with expectations
- Valora's exit from Trade business completes Group strategy of focusing on core business, will result in impairment charges to 2014 results
- Projected operating profit from continuing operations (including Naville) CHF 45-50 million for 2015 and CHF 65-70 million for 2016 based on €/CHF parity
- Measures to best possible offset exchange-rate effects of some CHF 10 million at €/CHF parity now in preparation
Valora Group focuses on its core business
The transformation at Valora following the sale of its Services division is progressing. Based on a strategic review of the Trade division as of year-end 2014 status, this business will be reclassified as “held for sale”. In deciding to exit the Trade business, Valora’s Board of Directors enables the division to find growth opportunities outside Valora. This reclassification will require an impairment charge to the 2014 results in the low-to-middle two-digit million range.
Once this step has been carried out, Valora’s future operating-profit results will relate exclusively to its Retail and Ditsch/Brezelkönig core businesses.
2014 operating profit in line with expectations
The Group’s continuing transformation process will affect its 2014 results. Net revenues are expected to be around CHF 1,900 million following the reclassification of some CHF 600 million of such revenues at Valora Trade. Despite one-off impairment charges at Retail Germany, the Group’s preliminary 2014 operating profit from continuing operations will exceed CHF 30 million, in line with previous expectations. Valora will also expect to close 2014 with a positive net-profit result.
Outlook for 2015 and 2016
Valora is maintaining its previous projections for Retail Switzerland and Ditsch/Brezelkönig. The strategic initiatives to raise profitability and boost growth are advancing according to plan. While its profitability will be lower than previously anticipated, Retail Germany’s contribution to the Group’s 2015 operating profit will be in the two-digit million range. Overall, Valora expects to generate an operating profit from continuing operations of some CHF 45-50 million in 2015, based on €/CHF parity and including projected special expenditure. This projection includes a contribution from Valora’s Naville acquisition, subject to approval from Switzerland’s Competition Commission. The projected special expenditure of some CHF 7 million includes development costs for promising new products and services as well as integration costs. In 2016, Valora expects to generate an operating profit of CHF 65-70 million. This includes a fall in operating profit of some CHF 10 million due to projected €/CHF parity. Additional measures are being taken to best possible offset this exchange-rate effect.
Further details of Valora’s 2014 financial performance will be announced on March 26, 2015 at the annual results conference.