Q1 REPORT January - March 2009 REPORTING PERIOD JANUARY - MARCH 2009 • Net sales amounted to SEK 203.5 million (173.0 m) • The operating loss excluding capital gains amounted to SEK 57.8 million (-29.5 m) • The operating loss was SEK 57.8 million (+45.5 m) • The loss after tax was SEK 63.6 million (+36.0 m) • EPS was SEK -6.85 (+3.85) SIGNIFICANT EVENTS DURING AND AFTER THE REPORTING PERIOD • BRIO found itself in a tough liquidity situation during the reporting period, which mainly affected the company's ability to meet its commitments towards the Group's suppliers. In conjunction with the financial reconstruction, negotiations took place with suppliers, resulting in improved payment terms. • The sale of obsolete stock took place during the reporting period, which boosted revenues but also had a negative effect on the gross results. • BRIO continued with its rationalization scheme during the reporting period to cut costs by around SEK 80 million per year, which will achieve full effect in 2011. One-off costs of SEK 6.2 million for initiating the rationalization scheme impacted negatively on the reporting period's results, which is SEK 18.3 million less than expected. This deviation is due to a delay in the comprehensive rationalization initiatives and means that future reporting periods during 2009 will be hit by one-off costs. • The Group has been divided into two divisions since 1 January 2009, BRIO Toy and BRIO Baby. In addition, BRIO Partner runs operations in an independent subsidiary. • Andreas Sbrodiglia was appointed as President and CEO of BRIO AB in January. CFO Håkan Johansson was also appointed as deputy CEO at the same time. Eva Brike took over as HR Director during the reporting period. • Management has developed an action plan that will create the foundation of a long-term, profitable BRIO. The overall theme of the action plan is focus: focus on the company's core and key markets and increased customer and consumer focus. • BRIO's AGM on 27 April included a decision for a preferential share issue and an offset issue of preferential shares as part of the Group's financial reconstruction. The new share issue's subscription period began on 11 May and will run until 26 May. More information is found on the next page. COMMENTS “Q1 was negatively affected by one-off costs for the rationalization measures started, clearance sales of obsolete stock and the weak Swedish currency. Results are not satisfactory. In the immediate future we will focus on rationalizing costs, cutting tied-up capital and improve cash flow. We are now working intensively to develop the business with two clear divisions.” Andreas Sbrodiglia President and CEO, BRIO CONTACT INFORMATION President and CEO Andreas Sbrodiglia Email: andreas.sbrodiglia@brio.net Tel: +46 479 190 00 CFO Håkan Johansson Email: hakan.johansson@brio.net Tel: +46 479 190 00 BRIO is a Swedish company that develops and sells toys, prams, children's car seats and children's furniture. The business is divided into two divisions; BRIO Toy and BRIO Baby, along with the subsidiary, BRIO Partner. The company was formed in 1884 and is today an international Group with the BRIO, SIMO and Alga brands. The Group has about 370 employees, is represented in over 50 countries and has been listed on the Nasdaq OMX Nordic Exchange Stockholm since 1985.
Q1 REPORT January - March 2009
| Source: BRIO AB
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