Coin Group records important results with Upim plan
The Board of Directors of Gruppo Coin S.P.A. approves the First Half Results 2010
In the first half of 2010, the Coin Group recorded important results, in terms of operations with the gradual roll-out of the Upim integration plan, and in economic and financial terms, with significant growth in sales and in EBITDA.
With regard to the plan to integrate Upim, the company acquired by the Coin Group on 28 January 2010, in these initial six months, of the 135 stores making up the Upim chain network, 29 have been converted into the Ovs industry format and 6 have been converted into the Coin format.
The remainder of the Upim network stores (with the exception of the 6 stores closed or sold for reasons of profitability or overlapping with the Coin network) has been the focus of an important commitment in commercial terms, the intention being to create a product range which is as much in line with customers' requirements as possible.
Positive the results obtained so far in terms of sales:
• Ovs industry (29 stores): about +80% compared to last year;
• Coin (6 stores): about +60% compared to last year.
Upim network sales increased by +1%.
These results, though concerning to the first period of sales and therefore not on an annual basis, exceed expectations at the base of the acquisition.
Mention must also be made of our cost rationalisation activity: in July, ahead of the original plan, the Upim headquarters in Milan was closed and the staff, on the basis of agreements signed with the trade unions, transferred to commercial activities or to the headquarters in Mestre or benefit of labour mobility. The savings obtained here can be estimated to be in the order of 25 million Euro on an annual basis.
In the first half of 2010, total building net sales were 802.9 million Euro, an increase of 40.3% compared to the same period last year.
The main components of this growth were related to the following:
• +34.4% due to the consolidation of the Upim perimeter (including the sales generated in the converted stores). In the first six months of 2010, sales in the Upim perimeter (197.1 million Euro) grew by +4.4% compared to the same period last year, inverting the trend of performance in the last two years. This result was helped by the positive trend in same store sales (+0.5% in 73 stores) and the significant increase in the sales recorded in the stores converted to the OVS industry and Coin formats;
• +5.8% to the growth of Oviesse and Coin; both our historic brands had positive sales trends, in relation to both development and same store sales.
The sales trends in the second quarter were positive (May - July 2010). Despite the drop recorded in May due to the unusual frequency of rainy days, which affected sales badly, the second quarter recorded growth of +38.8% (of which +35.5% can be ascribed to consolidation of the Upim perimeter and +3.3% to theexcellent trends of the Coin and OVS industry brands in June and July).