MALMO, Sweden, Feb. 14, 2002 (PRIMEZONE) -- Wilhelm Sonesson:
-- The Board of Directors proposes the distribution of shareholdings
in Optilink.
Full year/12 months
-- Net sales increased to SEK 609.1 M (2000: 364.0).
-- Operating profit before goodwill amortization rose to SEK
45.0 M (36.9).
-- Profit after financial items amounted to SEK 6.6 M (21.5).
Fourth Quarter
-- Net sales increased to SEK 214 M (114.3).
-- Operating profit before goodwill amortization amounted to
SEK 24.1 M (33.6).
-- Profit after financial items amounted to SEK 6.4 M (15.5).
Wilh. Sonesson offers health products that satisfy a growing consumer demand. Health products comprise pharmaceuticals, naturopathic preparations, dietary supplements, and related personal care products.
Report on operations During 2001, Wilh. Sonesson reached a decision to focus activities in the health products sector. Development of this business area was started through acquisitions of the operations of Halsokostcentralen, MaxMedica and Australian Bodycare. Under Wilh. Sonesson's ownership, these activities are taking exciting steps in their strategic development; they also continue to perform favorably in terms of financial results. The expansion of this business area will continue through new acquisitions during 2002.
In parallel, divestment of other activities were initiated. The sale of SoftCenter is assigned the highest priority. Sonesson Inredningar showed favorable economic and business development during 2001, as well as MW Trading during the second half of the year. Accordingly, Wilh. Sonesson's ownership interests in these operations will be divested under forms that will provide opportunities to safeguard their financial values and benefit the operations.
Wilh. Sonesson's capital base was strengthened substantially during 2001 through two new share issues: a rights issue to present shareholders and a private placement to Lifco AB, which generated approximately SEK 214 M in new shareholders' equity and increased the total number of shares by nearly 133%. Toward year-end, therefore, the company bought back 600,000 shares, which can be used for payment of future acquisitions, and to prevent future dilution, among other considerations.
Other events during the year included a decision to increase the number of Board members by adding four new members with extensive experience in health products and consumer products. The Group's head office was also moved to Lund, as part of efforts to bring the company closer to important research in the health products sector.
Overall, 2001 was a year characterized by many positive changes, and there is good reason to believe that operations in 2002 will develop along the same lines.
Health products Net sales for the core activity comprising health products in full-year 2001 amounted to SEK 417.8 M (431.1), and the operating profit amounted to SEK 37.5 M (38.6, including SPP-funds totaling SEK 1.8 M). (The operations were consolidated in the Group on July 1, 2001.) Net sales during the fourth quarter amounted to SEK 103.9 M (112.0), with an operating profit of SEK 8.4 M (11.7). The decline in sales and operating profit was attributed to a weaker fourth quarter, compared with the preceding year, due to what is considered a temporary market decline.
Net sales by Halsokostcentralen amounted to SEK 385.1 M (404.1) in full- year 2001. In terms of earnings, the activities continue to show favorable development. A comprehensive program focused on business development is planned during 2002.
Net sales by MaxMedica in full-year 2001 amounted to SEK 106.6 M (100.1), a particularly strong increase compared with the preceding year in view of the weak fourth quarter. Profit growth remained favorable, despite negative currency effects throughout the second half of the year. MaxMedica also strengthened its market position in Sweden and established business activities in Denmark. Plans are now also being made to establish operations in Norway and Finland.
Net sales by Australian Bodycare amounted to SEK 33.3 M (35.4). In terms of earnings, the period was weaker than a year earlier. Renewed efforts will be focused on existing markets during 2002, in parallel with plans to expand into new geographic markets.
Other activities Net sales by the Sonesson Inredningar group in 2001 amounted to SEK 278.0 M (238.8), and operating profit amounted to SEK 18.4 M (15.9, including SPP funds totaling SEK 5.3). Accordingly, both sales and earnings reflected strong positive trends.
Net sales by SoftCenter amounted to SEK 46.6 M (23.7), with an operating profit of SEK 24.4 (13.7). SoftCenter was acquired on July 3, 2000. Accordingly, comparison figures for 2000 comprise only six months.
Net sales by MW Trading in 2001 amounted to SEK 77.2 M (22.3), and operating profit amounted to SEK 0.5 M (2.1). MW Trading was acquired on September 1, 2000 and comparison figures for 2000 comprise only four months. Profit in 2001 includes nonrecurring expenses amounting to SEK 4.5 M for restructuring costs. The restructuring measures appear to have generated favorable results, since operations during the fourth quarter showed an operating profit of SEK 2.7 M.
Optilink's development continues to meet expectations, which motivated Wilh. Sonesson to participate in December 2001 and January 2002 with a total of SEK 4.9 M in two new issues of convertible debentures. The company's total investment in Optilink now amounts to SEK 33.3 M. The Board of Directors plans to submit a proposal to the Annual General Meeting to distribute its holdings in Optilink to the shareholders, subject to the necessary decisions being made regarding a market listing of the Optilink share. Efforts to divest other financial investments in the technology sector are proceeding in accordance with previously established guidelines.
Fourth quarter of 2001 Consolidated net sales in the fourth quarter amounted to SEK 214 M (114.3). The profit before depreciation amounted to SEK 24.1 M (33.6), and the operating profit totaled SEK 12.6 M (23.5). Profit after financial items amounted to SEK 6.5 M (15.5). Results in 2000 included a capital gain of SEK 25.6 M from the sale of HelikopterService.
Group sales and profit January-December 2001 Consolidated net sales during the period amounted to SEK 609.2 M (364.0), an increase of 67%. Profit before depreciation totaled SEK 67.3 M (60.1), and the operating profit amounted to SEK 30.2 M (33.7). Profit after net financial items was SEK 6.6 M (21.5). Earnings during the period include a charge of SEK 1.9 M for divestments of financial investments in the technology sector and nonrecurring expenses of SEK 4.5 M for structural changes in MW Trading. Earnings in the preceding year included capital gains of SEK 27.3 M from sales of the subsidiaries HelikopterService and InterAir, as well as SPP funds totaling SEK 5.3 M.
Financial position The Group's liquid assets, including short-term investments, amounted to SEK 38.1 M (60.0). The Group's equity/assets ratio amounted to 38.3% (29.1), and the Parent Company's equity/assets ratio was 81.7% (69.4). Shareholders' equity amounted to SEK 441.8 (228.8). Interest-bearing provisions and liabilities totaled SEK 547.5 M (436.5). Shareholders' equity was impacted during year 2001 by a rights issue in the amount of SEK 153.7 M, a private placement to Lifco AB totaling SEK 60 M, a cash dividend of SEK 8.4 M and buyback purchases of the Company's own shares totaling SEK 10.1 M. Interest-bearing liabilities were affected by new loans totaling SEK 150 M, which were raised in conjunction with acquisitions of the activities in health products.
Investments Net investments by the Group during the period amounted to SEK 381.5 M (2.5). Gross investments in intangible fixed assets amounted to SEK 0.5 M (0.6). Gross investments in tangible fixed assets amounted to SEK 25.0 M (21.8), consisting primarily of investments in machinery and buildings. Gross investments in financial fixed assets amounted to SEK 19.1 M (42.5), relating primarily to shares and convertible debentures in Optilink. Net investments for acquisitions of subsidiaries amounted to SEK 348.7 M (159.2), and acquisitions of new companies in the health products sector.
Employees The average number of employees during the period was 325 (300). The increase was attributable primarily to acquisitions of new companies.
Parent Company Net sales by the Parent Company during the period amounted to SEK 13.4 M, and related to intra-company invoicing for services. The result after financial items was a loss of SEK 5.2 M (loss: 8.7). Earnings for the period includes a capital loss of SEK 2.6 M from the sale of technology holdings. Earnings in the preceding year included capital gains of SEK 7.6 M from divestments of the HelikopterService and InterAir subsidiaries, and a provision of SEK 1.0 M for synthetic options. Gross investments in fixed assets during the period amounted to SEK 242.2 M (132.1), consisting primarily of acquisitions of new companies within health products, and shares and convertible debentures in Optilink. The change in liquid assets during the period amounted to a decrease of SEK 16.4 M. The change in interest-bearing liabilities during the period amounted to SEK 4.6 M.
Other A warrants program was issued during the period comprising 550,000 warrants, of which 485,000 were subscribed by key personnel in Wilh. Sonesson. Each warrant carries the right to subscribe for 1.05 Series B shares at a subscription price of SEK 39.60 during the period December 1 - December 31, 2003. During the period, the company also bought back 100,000 synthetic options of a total issue comprising 150,000. The remaining 50,000 synthetic options extend through December 31, 2002, with an exercise price of SEK 39.80.
Buyback of own shares During December 2001, the Company purchased a total of 600,000 shares in Wilh. Sonesson AB, comprising 400 Series A and 599,600 Series B shares. Total liquidity amounted to 10.1 M, and the average purchase price per share was SEK 16.81. The buyback was implemented in accordance with a decision reached at a Special General Meeting of shareholders on October 8 and a subsequent decision by the Board of Directors on November 13. The acquired shares are intended primarily to serve as payment for future acquisitions of companies.
Significant events after the close of the reporting period After the close of the reporting period, the Company signed and paid for convertible debentures in Optilink totaling SEK 2.4 M.
Outlook for 2002 The Group's ongoing restructuring makes it difficult to forecast future business development. Wilh. Sonesson's future expansion in the health products sector will continue during 2002, which will provide good opportunities for strong growth in sales and profitability, but might also necessitate substantial investments and development costs.
Dividend proposal The Board of Directors has proposed that no ordinary dividend be paid on operations in fiscal year 2001. As a special dividend for 2001, the Board has proposed, subject to the necessary decisions being made regarding a market listing of the Optilink share, that the holdings in Optilink be distributed to the shareholders. The book value of the holdings on January 31, 2002 was SEK 33.3 M.
Annual Report and Annual General Meeting The Annual Report is expected to be released on March 24, and will be available at Wilh. Sonesson's head office and website. The Annual General Meeting will be held on April 24, beginning at 5:00 p.m. in Malmo Borshus.
Accounting principles The year-end financial report has been prepared in accordance with the same principles that applied in the Annual Report for year 2000, and in accordance with recommendations issued by the Swedish Financial Accounting Standards Council.
Future financial reports:
April 24, 2002 Interim report for three months ended March 31 August 13, 2002 Interim report for six months ended June 30 November 12, 2002 Interim report for nine months ended September 30 February 12, 2003 Year-end financial report for 2002
This information was brought to you by Waymaker http://www.waymaker.net
The following files are available for download:
www.waymaker.net/bitonline/2002/02/14/20020214BIT00460/bit0001.doc The full year-end report www.waymaker.net/bitonline/2002/02/14/20020214BIT00460/bit0001.pdf The full year-end report
This report has not been subject to review by the Company's auditors.