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Denmark
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20 January 2010

Imerco Holding A/S sidesteps financial crisis with large-scale growth plan

  • H1 2009 was characterised by financial crisis and revenue downturn. Imerco restored revenue growth in Q3 2009
  • Shareholders’ equity at 30 September 2009 amounted to DKK 699 million, equivalent to a high equity ratio of 52%, with available cash resources totalling a remarkable DKK 86 million.
  • Christmas trade in 2009 was on a par with the year before, resulting in a record-high operating profit for Q1 2009/10
  • Extensive growth plan, PLAN 100+, launched recently


The transitional year 2009

As previously announced, Imerco Holding, an 82%-owned subsidiary of the M. Goldschmidt Holding Group, has changed its financial year to the period 1 October–30 September. Previously, the financial year tracked the calendar year. The financial statements for the transitional period 1 January 2009 to 30 September 2009 therefore only comprise nine months of operations and not the important fourth quarter with Christmas trade, which is Imerco’s by far most important quarter, generating 40–45% of total annual revenue.

The economic crisis prevailed in the two first quarters of 2009, whereas Imerco posted revenue growth and healthy operations again in the third and final quarter of the shortened transitional period. Overall, Imerco recorded an EBITDA loss of DKK 47 million in the nine-month period ended 30 September 2009. As the transitional financial statements for 2009 do not include the important fourth quarter, they cannot be used to analyse Imerco’s earnings power. If the reporting period had not been transitional, Imerco would have recorded significant EBITDA growth for the full calendar year 2009 relative to 2008 on the basis of revenue on a par with 2008.

Imerco stands well prepared to face the future

Today, Imerco is Denmark’s by far largest housewares chain with 156 stores, the industry’s largest equity of DKK 699 million, corresponding to an equity ratio of 52%, and available cash resources totalling a remarkable DKK 86 million at 30 September 2009.

Building on the 2009 trend, Imerco now launches an offensive to win additional market share and open even more stores. Imerco’s goal is to reach 180 stores in Denmark within the foreseeable future and to further significantly increase earnings. In addition, Imerco plans to upgrade its IT platform and to take steps to fully implement an efficient central warehouse in the 2010/11 financial year.

Q1 2009/10 at a glance

Imerco posted a record-high operating profit in the first quarter of the new 2009/10 financial year, comprising the period 1 October–31 December 2009. Moreover, Imerco launched an extensive growth plan, which, in combination with a continued focus on operating costs, will ensure increased revenue, additional market share and significantly improved operations for Imerco.

CEO Ib Berntsen says: “In a move to achieve our goal that Imerco should also post reasonable operating performances in the three ‘small’ quarters outside the Christmas season, we have launched PLAN 100+, a large-scale growth plan intended to generate additional revenue of at least DKK 100 million this year. The plan involves far more aggressive marketing than you have ever seen before in our industry, a large number of innovative sales promotion initiatives and adjustments of Imerco’s product range, etc.”

CEO Ib Berntsen elaborates: “Imerco is off to a good start to the new financial year. We have put the crisis behind us, and the all-important top priority now is to effectively execute PLAN 100+.”

For further information, please contact:

CEO Ib Berntsen, phone +45 43 20 10 00

Read more about M. Goldschmidt Capital’s involvement in Imerco Holding

Read more about Imerco

See a list of all Imerco stores in Denmark

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