Operating result of EUR 35.9 mn

22 Feb '07

3 min read

In 2006 the Brantano Group realised an operating result of EUR 35.9 million. The result after tax from ongoing activities amounted to EUR 29.2 million and the net profit was EUR 29.5 million.

Income Statement:

Turnover:
During the financial year 2006 the Brantano Group realised a turnover of EUR 295.2 million, which represents a decrease of 2.9% compared to the EUR 304.1 million achieved in 2005. Excluding exchange rate effects, revenues decreased by 3.1%.

Gross margin:
In 2006 the gross margin amounted to EUR 151.0 million and was thus 51.2% of total turnover. In 2005 the gross margin amounted to EUR 152.9 million or 50.3% of turnover.

The significant improvement in the operating margin in percentage terms was the result of the constant focus on this margin during the purchasing process and inventory management, and of the implementation of the new commercial strategy in the United Kingdom whereby the sales period happened later in the season and prices were less deeply discounted.

Operating result (EBIT) – recurrent operating result (REBIT):

EBIT for the 12 months of 2006 amounted to EUR 35.9 million. In 2006 EBIT was influenced by EUR 29.1 million worth of other operating revenues generated by the sale of real estate and store management.

In the United Kingdom the leases for 2 stores, namely Leamington in the first half of 2006 and Oxford in December 2006, were surrendered to the landlord. In the firsthalf of 2006 ownership of the store in Lede (Belgium) was sold and in December the Group realised a significant capital gain upon the sale of its stake in Brimmo NV.

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