Ad hoc announcement by United Labels AG dated 18 July 2017
ISIN: DE 0005489561, WKN: 548956, Ticker: ULC
United Labels AG: Preliminary results for first six months
Significant year-on-year improvement in first-half earnings
- Group sales revenue at EUR 14.7 million
- Earnings before interest, taxes, depreciation and amortisation (EBITDA) almost triples
- Special Retail segment shows strong growth
Münster, 18 July 2017. United Labels AG (ISIN: DE 0005489561, WKN: 548956) recorded consolidated revenue of EUR 14.7 million (prev. year: EUR 16.0 million) in the first half of the 2017 financial year.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to EUR 1.3 million, which was almost three times as much as in the same period a year ago (prev. year: EUR 0.5 million). Earnings before interest and taxes (EBIT) also rose sharply to EUR 1.0 million (prev. year: EUR 0.1 million). The improvement in earnings was attributable to a visible increase in the Group's gross profit margin by 7.5 percentage points to 36.3% due to the growing share of high-margin specialty retail business. Post-tax earnings for the Group improved to EUR 0.3 million, up from EUR -0.4 million in the same period a year ago.
In the three months of the second quarter sales revenue grew by 16% to EUR 7.7 million (prev. year: EUR 6.6 million), also primarily as a result of business in the Special Retail segment.
Order backlog at the end of the first half stood at EUR 6.9 million at Group level, which was up EUR 0.5 million on the previous quarter and mainly includes orders within the Key Account segment; orders attributable to the Special Retail segment are serviced primarily from stock and merchandise within this area can be dispatched soon after orders have been placed by customers.
In Germany, in particular, business within the Special Retail segment developed very well due to sales of "Diddl" and "Pummeleinhorn" merchandise. In this segment, the company added more than 600 retailers to its customer base in the first six months, as a result of which the total number of retail outlets stocking the company's merchandise is now in excess of 1,000. Alongside a number of individual stores, the company also managed to attract several retail chains specialising in books, giftware and toys. Retailers are offered a steady stream of new products relating to both collections, supported by extensive social media campaigns. Additionally, the Group established its distribution in Austria, Switzerland and - in the second quarter - Italy. As United Labels AG has acquired licence rights for all EU states, it will be looking to expand its business further in this field in the very near future.
In addition to operating a b2b shop for retail partners, the company sells "Diddlmaus" merchandise to end consumers via the proprietary online store "diddl-shopping.de", while "Pummeleinhorn" products are marketed through "Elfen.de".
Overall, the growth target for Group revenue in the 2017 financial year stands at 2%-7%. Based on current projections, EBIT is expected to lie between EUR 1.7 million and EUR 2.7 million in 2017.
The report issued by United Labels AG for the first six months of 2017 will be available for download early august from the following site: http://www.unitedlabels.com/investor-relations/finanzberichte
United Labels AG - Investor Relations -
Fabian Aulke, Director Finance, Gildenstraße 6, 48157 Münster
Tel.: +49 (0) 251-3221-0, Fax: +49 (0) 251-3221-960
United Labels AG
|Contact Person:||Fabian Aulke, Director Finance|
|Phone:||+49 251 3221-0|
|Stock Exchange(s):||Regulated Market in Frankfurt; Free Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate|