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Press release

Financial Statement January - December 2009

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BRIO profits improved by sek 75 million in Q4

Report period october – december 2009

• Net sales amounted to SEK 304.2 million (303.7 m)
• The operating profit was SEK 16.7 million (-58.6 m)
• The profit after tax was 16.1 million (-71.5 m)
• EPS before and after dilution was SEK 0.10 (-7.66)
• Cash flow from current business was SEK 125.3 million (144.7 m)

Report period january – december 2009

• Net sales amounted to SEK 951.0 million (892,5 m)
• The operating loss excluding capital gains was SEK 122.3 million (-126.8 m)
• The operating loss excluding capital gains and adjusted for restructuring costs was SEK 100.9 million (-111.3 m)
• The operating loss was SEK 122.3 million (-44.7 m)
• The loss after tax was SEK 140.6 million (-75.3 m)
• EPS before and after dilution was SEK -1.51 (-8.10)
• Cash flow from current business was SEK 6.9 million (-85.9 m)

Significant events during and after the report period

• The Board proposes that no dividend be paid for 2009
• The Board expects the operating profit to improve significantly for the full year 2010

CEO’s comments

The comprehensive changes we carried out in the first six months of the year provided clear results at year-end. Compared with the same quarter last year profits improved by SEK 75 million and costs were cut by SEK 40 million. We also had a positive cash flow for the full year from current activities, thanks to the rationalization of stocks and logistics.

We refinanced the company during the first six months and together with the Board of Directors BRIO’s management developed a strategy plan for making BRIO profitable. The company’s weak liquidity had a large negative impact on profits for the first six months. BRIO suffered from not being able to hedge currency sufficiently, which meant significantly higher purchase prices when the US dollar got stronger, and the company
was also forced to perform large clearance sales to adapt stocks and free up liquid assets.

In the second half of the year we increasingly noted positive effects from the measures taken at the start of the year. The strategy plan, focusing on the two clear divisions of BRIO Toy and BRIO Baby and on the Nordic region and Northern Europe as the main markets, produced good results: our sales climbed by 6.5 per cent, we cut costs
for staff and premises, and the share of sales of our prioritized brands improved.

The next focus for BRIO’s change initiative is on measures to improve liquidity, control costs and improve gross margins. Profits and liquidity will be prioritized ahead of sales growth. We expect the operating profit to improve significantly for the full year 2010.

Andreas Sbrodiglia
President and CEO, BRIO



This information is published by BRIO AB (publ) in accordance with Swedish Law regarding the securities market and /or the law regarding trading in financial instruments. The information was submitted for publication at 8 a.m. on 24 February 2010.

Read the entire report here