DGAP-News: Beate Uhse AG: Beate Uhse reports loss for first six months
(firmenpresse) - Beate Uhse AG / Profit Warning
13.08.2010 23:30
Dissemination of a Corporate News, transmitted by
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Beate Uhse reports loss for first six months
- Strategic repositioning as a lifestyle company
to be pushed ahead
- New forecast for 2010
Flensburg, 13 August 2010. While Beate Uhse, the adult
lifestyle company from Germany, closed the first quarter of 2010 as planned
with sales of EUR 55.3 million and positive earnings before taxes in an
amount of EUR 860k, a sharp drop in earnings was
reported at the half-year stage. Earnings before interest and taxes (EBIT),
which amounted to EUR 686k in the same period of the
previous year, declined to EUR -6.1 million. Sales dropped from last year's
EUR 109.5 million to EUR 96.0 million, which was more or less in line with
plans. 'We will push ahead the reorganisation of our Group with even
greater determination, because we have the right strategy,' COO and
Management Board Spokesman Serge van der Hooft commented on the situation.
By winning new target groups, expanding its product portfolio and building
up new multimedia
distribution channels, the Group initiated counter-measures at an early
stage with a view to offsetting the negative effects from the
formerly strong but now dramatically shrinking DVD business and the
competition from free movies on the Internet.
Linen and cameras complement sex toys and lingerie
Launched in autumn 2009, the new product groups of home textiles and
electronics have met with a surprisingly good
response. 'They already account for 13 percent of our
mail-order business and show very pleasing growth rates,' said Jan
Boddaert, Chief Marketing Officer of Beate Uhse. The
percentage of online orders increased markedly to 46 percent of total
sales. In Germany, Internet order rates were even above plan in May and
June. 'We are increasingly positioning ourselves as a full-range supplier
of adult lifestyle products on the Internet.' The decision to divide the
product range into 'hard' and 'soft' products and to offer them in separate
catalogues was not well received by customers. This modify-cation of the
catalogue concept was the main reason for the decline in sales to EUR 44.4
million (H1 2009: EUR 49.2
million) and resulted in the dramatic drop in earnings before taxes from
EUR 4.4 million to EUR -1.9 million. This hit the company even harder as
the mail-order segment is the largest, fastest and most
important growth driver of the Group.
Internet business profitable despite difficult market environment
The company's complete Internet presence, from the online shop to the adult
entertainment offerings to the presentation of the shops, has been
redesigned. The new website went online under the Beate Uhse, Pabo,
Christine le Duc and Adam&Eve brandnames in July and features a fresh and
modern look in all 11 countries. The new website reflects the
transformation into an adult lifestyle company and provides the whole world
of adult lifestyle products and services
under a single umbrella. Beate Uhse thus stands out from the traditional
adult entertainment industry and clearly distinguishes itself from the free
content offered by YouPorn and the likes. Building on quality and
respectability, the Group's entertainment segment has built up an image of
its own. High-margin offerings helped the division
to boost its pre-tax profits by 11.6 percent to EUR 714k in a
difficult and highly competitive market environment. At EUR 5.4 million,
sales remained more or less stable at the prior year level (EUR 6.2
million).
Building on quality and respectability, the Group's entertainment segment
has built up an image of its own and boosted its
pre-tax profits by 11.6 percent to EUR 714k. At EUR 5.4 million, sales
remained more or less stable at the prior year level.
Concentration on promising shopping locations
The retail segment continued to suffer from consumer's
price-consciousness and spending restraint. By contrast, the
modernised shops in city centre locations showed a positive trend. They
reach exactly those target groups that have been identified as the
customers of tomorrow, namely young couples and the new gene-ration of
women. In the context of the ongoing restructuring, the branches will be
closely reviewed for their future viability and those branches that are
unfit for the future will be closed. Initiated in 2008, the reduction of
the branch network to 258 stores in 11 countries had an impact on sales,
which were down EUR 3.6 million on the prior year period to EUR 26.6
million. As a result of the dramatically
shrinking DVD and cabin business, earnings declined to EUR -1.3 million (H1
2009: EUR -0.4 million).
Optimisation of wholesale logistics
The wholesale division's logistic centre in Almere near
Amsterdam has been changed to a voice picking system.
Orders are processed with even greater precision and efficiency and
delivered within 24 hours within Europe. This represents a significant
improvement of the services and strengthens the 40-year market leadership
of Scala. Nevertheless, the wholesale segment was
unable to isolate itself from the difficulties faced by the sector. The
ailing DVD business had a triple effect on sales and earnings: lower
margins, lower order volume and poorer customer creditworthiness resulting
from poor economic activity in the adult lifestyle industry. Sales of EUR
19.7 million (H1 2009: 49.2 million) and a loss of EUR
2 million (H1 2009: EUR -0.9 million) mean that the situation remains
unsatisfactory.
Forecast for 2010 adjusted
In view of the situation in the second quarter of 2010, the
Management Board has revised its forecast for the year 2010. 'The
traditionally weak summer months are still ahead of us and the gap is too
large to be covered,' Serge van der Hooft commented on the
decision. The Management Board now projects a negative result of EUR 6.5 -
8 million on sales of EUR 204 - 208 million for the full year 2010
(excluding special effects). The restructuring process requires more time
than originally expected. 'Realistically speaking, the transformation into
an adult lifestyle company will take another two years from today's point
of view,' Serge van der Hooft concluded.
The annual report 2009 and the 6 month report can be viewed at
www.beate-uhse.ag
This release contains forward-looking statements. Forward-looking
statements are statements that are not historical facts; they include
statements about our beliefs and expectations and the assumptions
underlying them. These statements are based on plans, estimates and
projections as they are currently available to the management of Beate
Uhse. Forward-looking statements therefore speak only as of the date they
are made, and we undertake no obligation to update publicly any of them in
light of new information or future events except as may be required by
applicable laws
13.08.2010 23:30 Ad hoc announcement, Financial News and Press Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Language: English
Company: Beate Uhse AG
Gutenbergstraße 12
24941 Flensburg
Deutschland
Phone: +49 (461) 99 66 307
Fax: +49 (461) 99 66 440
E-mail: atschernookoff(at)beate-uhse.de
Internet: www.beateuhse.ag
ISIN: DE0007551400
WKN: 755140
Indices: CDAX, PRIMEALL, CLASSICALLSHARE
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Hamburg, München, Düsseldorf, Berlin, Stuttgart, Hannover
End of News DGAP News-Service
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Datum: 13.08.2010 - 23:30 Uhr
Sprache: Deutsch
News-ID 32011
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Kategorie:
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