BRIO AB: Financial Statement January - December 2008
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BRIO AB (STO:BRIOB):
REPORT PERIOD OCTOBER – DECEMBER 2008
Net sales amounted to SEK 303.7 million (323.7 m)
The operating loss was SEK 58.6 million (6.1 m)
The loss after tax was SEK 71.5 million (-8.0 m)
EPS before and after dilution was SEK -7.66 (-7.48)
PERIOD JANUARY – DECEMBER 2008
Net sales amounted to SEK 892.5 million (930.1 m)
The operating loss was SEK 44.8 million (-52.7 m)
The operating loss excluding capital gains was SEK 126.8 million (-52.7 m)
The loss after tax was SEK 75.3 million (-82.6 m) EPS before and after dilution was SEK -8.07 (-7.88)
SIGNIFICANT EVENTS DURING AND AFTER THE REPORT PERIOD
COMMENTS BY THE BOARD
BRIO is in a serious situation and the board deems that the Group will shortly face an acute liquidity shortage. The board also deems that the company needs a considerably stronger long-term capital base.
The situation and capital needs that have arisen have been driven by a number of different factors:
BRIO has suffered from significant structural problems over the past decade. The Group has also, for many years, under invested in product development and has lost market shares markets despite its strong brand. More resources and time has been required than initially estimated to remedy the internal problems and to establish BRIO’s new position on the market. This has resulted in the Group’s shareholders equity being all but utilised.
BRIO has a pessimistic outlook in terms of consumer trends over the coming years. This will probably put extra pressure on the entire industry, which will lead to an increased operating capital requirement for BRIO. The high rate of debt inhibits BRIO’s possibility of successfully carrying out the restructuring and development necessary.
In order to manage this situation and successfully continue developing BRIO requires a completely different capital base. The board therefore deems it necessary for BRIO to receive a capital injection of SEK 300 million.
The board is working to immediately secure BRIO’s capital supply in the short and long term and intends to submit a proposal by 13 March 2009 on refinancing, which can be carried out by means such as a new share issue and loans from shareholders.
Malmö, 17 February 2009
This information is published by BRIO AB (publ) in accordance with Swedish Law regarding the securities market and/or the law regarding trading in financial instruments. The information was submitted for publication at 8.30 a.m. on 17 February 2009.
BRIO is a Swedish company that develops and sells toys, prams, children’s car seats and children’s furniture. The company was formed in 1884 and is today an international Group with the BRIO, SIMO and Alga brands. The Group also includes Scanditoy, an extensive toy wholesale business in the Nordic region. The company has about 400 employees, is represented in over 50 countries and has been listed on the O-list of the OMX Nordic Exchange Stockholm since 1985.
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