Valora Group reports stable results in the face of demanding market conditions. Growth prospects favourable.

28.03.2012 / 07:00 /

  • External sales increased in 2011 – adjusted net revenues in line with 2010 levels
  • Systematic implementation of Valora 4 Growth strategy continues
  • Significant new initiatives taken to secure future growth
  • Board to recommend unchanged dividend at 2012 Ordinary General Meeting
  • Improvement on previous year’s results expected for 2012, despite further acceleration of press volume decline and weak Swiss retail market

External sales increased in 2011 – adjusted net revenues in line with 2010 levels
In a year marked by major challenges for the Swiss retail sector, the Valora Group increased its external sales (including franchisee turnover) by +0.5% to CHF 2 961.9 million. In local currency terms and after adjusting for the non-recurrence of 2010 football picture card sales, external sales were +6.3% up on their 2010 levels.

The Retail division turned in a positive performance, expanding in all the national markets in which it operates. Valora Services, conversely, was adversely affected by the sharp decline in the overall press market. Valora Trade advanced substantially thanks to its acquisitions, though its sales in Switzerland declined due to the strength of the Swiss franc and the resulting increase in parallel imports by retailers.

The Valora Group’s reported operating profit for 2011 was CHF 70.5 million. After adjusting for exchange rate fluctuations and the non-recurrence of earnings from the distribution and sale of football picture cards from which it benefited in 2010, Valora’s 2011 EBIT was CHF 0.4 million up on its previous year’s level, which equates to an EBIT margin of 2.6%, slightly below the 2.7% achieved in 2010.

The Group’s 2011 net profit was CHF 57.4 million (CHF 63.6 million in 2010). Despite an acquisition-related financing requirement of some CHF 40 million, Valora’s net debt remains modest, at CHF 41.0 million. The successful completion of new syndicated loan facilities and a new bond issue mean that the Group has the financing it will need to support its operational business needs and its Valora 4 Growth strategy over the next few years. With shareholders’ equity accounting for 41.9% of total assets, Valora continues to maintain a sound balance sheet structure.