Coin Group records important results with Upim plan

25 Sep '10

6 min read

Consolidated Ebitda for the first six months of 2010 was 61.1 million Euro (8.2% of Net sales), an increase of 25.9% compared to July 2009 (48.5 million Euro). Excluding the results in the Upim perimeter, Ebitda was 60.2 million Euro (10.9% of Net sales), an increase of +24.1% compared to the 2009 first half.

The effects of the Upim integration plan are clear, and in particular the contribution made by conversion of the ex-Upim stores into the OVS industry and Coin formats; also clear are the improvement in sales and commercial margins of the non-converted stores and the
initial effects of cost rationalisation of the central structures starting from July, when the ex-Upim headquarters was closed and integrated into the Venice-Mestre headquarters.

The result of these initial integration activities has led to an EBITDA for the Upim perimeter of 0.9 million Euro, a clear improvement on the figure of -8.7 million Euro recorded by the previous management in the period February - July 2009. In the second quarter of 2010, EBITDA was + 3.8 million Euro while it was - 3.3 million Euro in the period May-July 2009.

The consolidated result before taxes was 7.7 million Euro, increased on the result in the first half of 2009. Excluding the Upim perimeter result before taxes amounts to 16.1 million Euro (+115%).

As for the financial management, as of 31 July 2010, Group financial indebtedness is 421.5 million Euro with a first half year cash flow increased by 32.8 million Euro compared to last year (59.3 million Euro excluding UPIM).

On 16 September 2010, the Coin Group, through its subsidiary OVS Industry, acquired 54 stores which specialise in children's clothing, part of the Magnolia chain; thereby considerably accelerating its growth plans in this segment.

The agreement will allow the Group to increase to 89 the number of stores dedicated to children, in addition to the 35 stores we already had dedicated to this segment. Of these, 20 OVS Kids brand stores were opened over the course of the last year, and 15 Blu Kids brand stores were obtained through the acquisition of Upim. The operation has the object of converting all the stores acquired into the OVS Kids format.

The months of August and September were characterised by continuation of the activities for the conversion of the Upim network into OVS Industry format (at present, there are 49 stores; a further 5 will be opened over the coming weeks) and Coin format (at present, there are 8 stores; one further store will be opened in October). The results of the stores opened between August and September reveal the same positive trends as those of the stores opened in the first half of the year.

Again with regard to the integration of the Upim network, on 15 September, in Corso Buenos Aires in Milan, the first store with the new “Upim - Pop in the city” format was opened, created by the Coin Group. Also in Milan, the day after, in Via Corvetto, the second store was opened, followed by two openings in Rome (in Via Tuscolana and Santa Maria Maggiore). The building sales results for these stores, in the very first few days after opening, were very positive and reveal the strong impact which the Upim-Pop format is having on the public.

As for the historical Group brands, it must be remembered that, with the Via Torino store in Milan (conversion of a Upim store), OVS Industry reached the landmark of 500 stores and presented the latest evolution of the brand concept. Growth of the brand abroad also continued, with the opening of 3 stores in India.

Gruppo Coin S.P.A.

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