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Stefanel highlighted the strong Nuance performance at Hong Kong International Airport (pictured) as well as in Switzerland and the US |
SWITZERLAND. The Nuance Group achieved a +5.0% rise in sales in H1 2006 compared to the same period in 2005, co-parent Stefanel reported on 4 August.
Sales related to 50% shareholder Stefanel were €266.9 million, up +5.0%, and EBITDA was €2.5 million in the period, down by €300,000 on last year. EBIT was negative by €1.7 million, down €600,000 on the corresponding period. The net result, after booking higher financial expenses of €800,000 and a higher tax burden, is a loss of €5.3 million (H1 2005: €4.3 million).
Gross margin on sales slipped from 54.4% to 53.8% in the period.
Stefanel said: “These results reflect the opposing effects of a significant improvement in the performance of certain affiliates operating in countries such as Switzerland, Hong Kong and the US, offset by poor performances by the operations in Denmark and Australia, which are increasingly penalised by the rising proportion of costs for their respective concessions.”
“We knew that 2006 was going to be a year of transition [for Nuance]“ |
Giuseppe Stefanel |
It added: “Note, however, that the Sydney concession (around 12% of sales) and the Copenhagen Airport concession (around 11% of sales) are due to expire over the coming months.” [Nuance looks likely to win another term at Sydney under a new duty free contract, after being named preferred operator by the airport on 21 July-Ed]
The Nuance Group’s net debt is €76.7 million, up €2.8 million in the year to 30 June 2006, said Stefanel.
As a group, Stefanel reported net sales of €140.4 million (up +10.8%), EBITDA at €14.7 million and EBIT at €9.0 million for the half. These results, it said, were “positive and in line with budget” and derived mainly from the core apparel market. The €5.2 million loss it reported from investments “substantially reflects the performance of the Nuance Group given that it is now consolidated at net equity” said the group.
Of Nuance’s performance, Chairman Giuseppe Stefanel said: “We knew that 2006 was going to be a year of transition, during which we had to work hard to handle the renewal of the concessions reaching expiry in the best way possible, while at the same time advancing those projects that will be able to guarantee a significant improvement in profitability in the near future.
“I expect to see signs in this direction during the second half as this is the more important part of the year for the cyclical airport retailing business. For 2006 I think that I can confirm the expectation of positive results in line with our medium-term objectives.”
MORE STORIES ON THE NUANCE GROUP
Nuance set to retain Sydney duty free contract after being named preferred bidder – 20/07/06
Nuance doubles space at Malm̦-Sturup Airport Р10/07/06
“˜Operational excellence’ the paramount objective in 2006 says Nuance as it unveils 2005 results – 31/05/06
