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5 March 2013

Annual Report 2011/12 of Imerco Holding A/S

Imerco is adapting and focusing on the entire value chain

Imerco A/S, Denmark’s undisputedly largest housewares chain, with 151 own stores nation-wide, today released its annual report for the financial year 2011/12:

  • Imerco gained market share but revenue dropped to DKK 1,057 million. Christmas sales in 2011 were particularly sluggish.
  • Imerco posted an operating loss including non-recurring costs of DKK 18 million but produced a cash inflow from operating activities of DKK 40 million.
  • Imerco acquired a majority interest in design company erik bagger a/s and successfully integrated the company in a very smooth process.
  • Imerco’s customer club, Imerco+, has grown into one of Denmark's largest customer clubs with more than 700,000 members, which is highly satisfactory.
  • Imerco implemented a number of initiatives ahead of the 2012 Christmas season and concluded a collaboration agreement with the Bodum group.
  • Overall, this resulted in highly satisfactory Christmas sales in spite of difficult market conditions. Especially, sales of own-brand products increased. The strong Christmas season in 2012 was owing to the fighting spirit and dedicated support of Imerco's employees.
  • Imerco’s shareholders' equity amounted to DKK 707 million at the end of the 2011/12 financial year and at an equity ratio of 58%, Imerco remains Denmark's most robustly capitalised retail chain within houseware products.

Highlights of 2011/12

Imerco A/S is Denmark’s undisputedly largest housewares chain with 151 own stores distributed across the country and an online shop.

In the 2011/12 financial year, Imerco generated revenue of DKK 1,057 million and an EBITDA loss of DKK 18 million including non-recurring costs. The company generated a cash inflow from operating activities of DKK 40 million.

Imerco succeeded in gaining market share in a very competitive and increasingly price-driven market characterised by consumer restraint. In order to navigate the competitive situation and improve its gross margins, Imerco's management has resolved to increase its direct sourcing. One example of this is Imerco’s acquisition and integration of erik bagger a/s, which enabled Imerco to begin direct-sourcing of own brands "Cook & Baker" and "CASA" already in the summer of 2012. Combined with "erik bagger" and selected VIP brand suppliers, these two brands form the cornerstone of Imerco’s strategy. Going forward, these initiatives will gradually drive up Imerco's gross margins as and when new products are introduced.

Since its launch in October 2011, Imerco’s customer club, Imerco+, has grown into one of Denmark's largest customer clubs, now counting more than 700,000 members. The customer club is developing extremely well and Imerco stands to reap some very good benefits in future from the strengthened customer relations established through the customer club.

Lastly, Imerco completed a number of cost adjustments in 2011/12 and implemented additional adjustments at the beginning of the 2012/13 financial year. These initiatives will take full effect in the 2012/13 financial year.

Effective 1 October 2012, Frederik Brønnum was appointed Managing Director of Imerco. The new management then made a number of adjustments to Imerco’s strategy with special focus on products, product range, organisation, IT and staff.

These initiatives were considered necessary in order for Imerco to achieve satisfactory Christmas sales in 2012 – an assumption that later proved correct. In that connection, Frederik Brønnum said: "I'm very pleased to note the strong and swift results of the many changes we've made to the way we operate the Imerco chain. Fortunately, there are a number of different ways we can make adjustments to improve on our performance, and we have to realise that we're not going to get any tailwind from the retail market in the near future. In other words, we need to manage, adjust and focus mainly on internal enhancements. In that light, I'm particularly pleased that we got off to such a good start to the new year."

For additional information, please contact

Managing Director Frederik Brønnum, phone +45 43 20 10 00

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