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Press release

Quarterly report January - March 2011

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Reporting period january – march 2011

• Income amounted to SEK 197.1 million (189.0 m)
• The operating loss was SEK -23.3 million (-31.2 m)
• Adjusted for restructuring costs and other one-off items, the operating loss was SEK -21.3 million (-31.2 m)
• The loss for the period was SEK -28.2 million (-31.7 m)
• EPS before and after dilution was SEK -0.18 (-0.21)
• Cash flow from operating activities was SEK -96.9 million (-89.0 m)

Significant events over the reporting period

• Peder Zetterberg was appointed as acting President and CEO with effect from January 1, 2011.
• Executive Vice President and CFO Håkan Johansson was appointed as the new divisional manager for BRIO Baby on March 1, 2011, replacing Anders Hagert who has since left the company.
• BRIO’s main owner Proventus increased its ownership in March 2011 to over 90 per cent of the shares in BRIO AB and called for the compulsory purchase of outstanding shares. Proventus also submitted a public buy out offer to BRIO’s shareholders. In conjunction with this BRIO’s class C preference shares, class D preference shares and ordinary class B shares were put on the watch list for trading on the NGM Equity list.
• BRIO and Proventus signed an agreement in March for Proventus to convert the loan of SEK 54 million that falls due for repayment on September 22 this year to run until December 31, 2013, on September 22, 2011. The loan replaced Proventus’ share of the subordinated debenture signed in conjunction with BRIO’s new share issue in 2006.
• BRIO’s tied-up working capital rose to an unexpectedly high level during the reporting period. The main owner Proventus therefore provided BRIO with a short-term loan of SEK 60 million, of which SEK 30 million was paid out during the reporting period and the remainder at the beginning of April, after the end of the reporting period.

Significant events after the reporting period

• Proventus reported its ownership amounted to 98.9 per cent of the shares and 99.3 per cent of the voting rights in BRIO after the registration period for the public buy out offer had expired on April 28, 2011. Against this background BRIO’s Board decided on May 12, 2011 to apply for a de-listing of its shares from NGM. The final trading date is expected to be June 10, 2011. The final day will be announced as soon as BRIO has received confirmation from the NGM.

CEO’s comments
“BRIO’s extensive reorganization is continuing and characterizes work within the Group. At the same time, the Group had a sales growth during Q1 of 4 per cent compared to the same period last year. The BRIO Toy division’s increase was 8 per cent compared to the same period last year primarily due to strong sales in Norway. In the BRIO Baby division sales rose over the reporting period by 11 per cent compared with the same very weak period last year, mainly as a result of strong demand in Sweden. This, combined with cost-cutting measures resulted in an improved operating loss. The Group’s liquidity is still however stretched.”

Peder Zetterberg
Acting 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. This information was submitted for publication at 2.30 p.m. on May 12, 2011.
 
Read the entire report here