Beter Bed Holding NV : Beter Bed: revenue remains unchanged in 2012; writedown
in Spain puts additional pressure on net profit
*Net revenue of € 397.3 million in 2012, in line with 2011 (€ 397.0
*Writedown on assets in Spain totalling € 6.0 million net (no cash flow
*Non-recurring expenses for reorganisations and store closures of € 2.5
million in 2012.
*Operating profit (excluding writedown in Spain and the non-recurring
expenses) decreases from € 38.3 million (9.6% of revenue) in 2011 to
approximately € 31.4 million (7.9% of revenue) in 2012.
*Net profit excluding writedown in Spain and non-recurring expenses totals
approximately € 22.1 million in 2012 (2011:
€ 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 € 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 € 397.3 million was realised for the full year 2012 (2011: €
397.0 million). The change in revenue per country for the full year 2012
compared to 2011 is as follows:
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 € 4.9 million in total for intangible fixed assets/goodwill (€
3.8 million) and tangible fixed assets (€ 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 € 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 €
6.0 million negative.
The share of the Spanish activities in the consolidated revenue amounted to 3%
The impairments do not have any impact on the liquidity position and the
company continues to more than fulfil the covenants agreed with the
Non-recurring expenses in 2012
The company charged € 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).
Net profit in the fourth quarter is expected to amount to approximately € 0.8
million (Q4 2011: € 10.2 million). The effect of the impairments relating to
Spain amounts to € 6.0 million in the fourth quarter.
The company expects to have achieved operating profit of approximately € 23.9
million for the full year 2012 (2011: € 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 € 14.3 million for the full year 2012 (2011: € 28.0
million). This represents a decrease of € 13.7 million (-49%) compared to
The final figures for 2012 will be published on 8 March 2013. The results
stated in this press release have not been audited.
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 € 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: firstname.lastname@example.org / Website: www.beterbedholding.nl
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press release 23-1-2013.pdf
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Source: Beter Bed Holding NV via Thomson Reuters ONE
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