21-9-2006
Semi Annual Results 2006
New strategy delivers first results
Positive start for Maxeda:
• Strong results in the first half of 2006
• Net sales (including concessionaire sales) increased by 4.7% compared to the first half of 2005. Same store sales up by 3.4%
• Operating EBITDA increased by 21.4%
• Working Capital improvement of Euro 126 million
• Market share gains for practically all retail chains and product categories
• New strategy aimed at Selling more, Sourcing better, Saving costs and exploiting group Synergies has started to deliver results.
Maxeda (the new name for Vendex KBB since June 2006) saw its turnover and profit increase in its recently closed first half-year (February to July 2006 inclusive). Maxeda’s net turnover rose by 4.7% from EUR 1,840 million in the first half of 2005 to EUR 1,927 million in the first half of 2006. An increase in margins and tight cost control led to a 21.4% increase in the Operating EBITDA (Operating result before depreciation, amortisation and exceptionals) to EUR 116 million in comparison to the first half of 2005 (EUR 95 million).
Clear Strategic priorities
Maxeda’s mission is to achieve market leadership for every retail chain. Each store format is working with a new plan to generate profitable growth, both in the Netherlands and elsewhere in Europe. Maxeda is making substantial investments in its stores and its people. The strategic priorities are to increase sales at existing and new stores, to purchase more effectively in domestic and foreign markets, cut costs and improve cash flow. The retail chains within the group are also helping each other, sharing best practices and creating purchasing synergies. Several chains have established new shop-in-shop concepts. Joint efforts with respect to product ranges are producing results and synergy advantages are being achieved as planned.
Internally, the emphasis is on pursuing our corporate philosophy of ‘service-oriented leadership’, which is the key to our success. This means focusing on our customers and employees. We are convinced that we can succeed only if we are willing to serve our people, who in turn serve our customers. We believe our operating results demonstrate the effectiveness of this approach.
Tony DeNunzio, Executive Chairman Maxeda: “We want to offer our customers special stores, special products and special service. The only way for Maxeda to distinguish itself from the competition is to excite, to inspire and to assess customer satisfaction continually. Maxeda is a fast changing business. Our first half year results confirm that our new strategy is working. By satisfying more customers our formats are winning market share and improving their operating results.”
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