 |
|
|
RSDB ANNUAL RESULTS 2003
Result for 2003 better than expected due to strong 4th quarter and lower provision for reorganisation
2003 ANNUAL RESULTS
RSDB in 2003 realised a net result from ordinary operations of EUR 8.3 million, against EUR 10.3 million in 2002. Taking account of a provision for reorganisation of EUR 5.0 million, the net result amounted to EUR 3.3 million.
The net result is higher than was indicated, on the basis of preliminary information, in the press release of 15 January 2004. A strong fourth quarter of 2003 and on balance lower provisions for reorganisation at PlantijnCasparie have resulted in a higher definitive profit for the year.
In 2003, the relevant markets in and outside the Netherlands were characterised by further stagnating demand. The unchanged excess capacity supply resulted in unprecedented levels of price competition. In these conditions Roto Smeets managed to realise further market share growth, Media Partners realised an ‘all time high’ profit and PlantijnCasparie had a difficult and financially very disappointing year.
Partly as a result of divestments at PlantijnCasparie, total turnover declined by 5% to EUR 623.9 million (2002 EUR 658.6 million) while value-added was 5% lower at EUR 311.7 million (2002 EUR 329.3 million). With both lower personnel costs, lower depreciation / value reductions as well as lower other operating costs, total operating costs, including provisions for reorganisation, declined from EUR 313.8 million in 2002 to EUR 300.9 million in 2003. The operating result from ordinary operations declined by 21 % to EUR 18.4 million, against EUR 23.3 million in 2002. The operating result, including a provision for reorganisation, amounted to EUR 10.8 million (2002 EUR 15.5 million).
The balance of financial income and expenses declined from EUR 7,7 million to EUR 5.3 million. Cash flow from operating activities amounted to EUR 55.1 million (2002 EUR 66.2 million). Solvency at year-end 2003 amounted to 36.2 % against 32.0% at year-end 2002.
The weighted average number of issued ordinary shares decreased from 3,477,672 to 3,290,275. The profit from ordinary operations per share for 2003 amounted to EUR 2.51 (2002 EUR 2.97). After incorporation of the provision for reorganisation, the profit per share for 2003 amounted to EUR 1.00. A cash dividend of EUR 1.00 (2002 EUR 1.10) per ordinary share will be proposed to the annual General Meeting of Shareholders, to be held on April 7, 2004.
PROSPECTS
None of the market segments serviced by Roto Smeets, PlantijnCasparie and Media Partners, show any sign of a structural market recovery. In the consumer market, print runs in the magazines segment at the mass circulation magazines are under slight pressure. Advertising volumes are also not yet improving. In the business-to-business market there is no actual increase of spending. A continued recovery of the financial markets could trigger an improvement in the financial printing market segment. Demand factors, in combination with the undiminished supply of excess capacity, are almost unchanged from last year. At the same time, the implemented rationalisations, especially at PlantijnCasparie, together with the successful capacity utilisation strategy at Roto Smeets, will make positive contributions.
As a result, RSDB looks ahead with much confidence, although it believes that it is as yet too early to make statements regarding the profit development in the current year.
THREE BRANDS
The three main brands Roto Smeets, PlantijnCasparie and Media Partners reported the following result development:
| x EUR 1 mln |
2003 |
|
2002 |
| |
turnover |
operating result |
|
turnover |
operating result |
 |
| Roto Smeets |
458,8 |
22,3 |
|
477,0 |
24,4 |
|
| PlantijnCasparie |
150,6 |
-14,3 |
|
174,9 |
-10,8 |
|
| Media Partners |
17,1 |
2,8 |
|
16,0 |
1,8 |
The number of employees, in fulltime equivalents, declined from 3,790 at year-end 2002 to 3,465 at year-end 2003.
Roto Smeets
Roto Smeets further strengthened its market position. After two successive years of decline, in 2003 total sales of paper in the relevant Western European rotogravure and web offset market, on balance showed a fractional 1% increase.
As a result of lower advertising budgets and falling consumer confidence, print runs and sizes of magazines declined. Catalogues had lower print runs. Growth in promotional print, unaddressed advertising in particular, continued. The effective production capacity of the printing industry increased in size. These supply and demand ratios put further pressure on prices.
Roto Smeets easily realised its formulated volume target: almost all terminating contracts were renewed, the position in the pan-European magazine segment was strengthened, growth was realised in the promotional print segment, both at home and abroad. Measured by tonnage of paper, production increased by 6 % compared to 2002.
PlantijnCasparie
PlantijnCasparie had a difficult and financially very disappointing year. In the market relevant for PlantijnCasparie, volume declined by approximately 5% for the third year in a row. Marketing budgets were cut, while there were no financial printing orders as a result of the absence of a recovery in the financial markets. The excess capacity supply remained, despite a doubling of the number of bankruptcies. The market projections based on the 4th quarter of 2002 proved to be too optimistic. Additional measures aimed at a result recovery became unavoidable. A second round of reorganisations was announced late in the summer. The new strategic concept in combination with both major reorganisations, which are both completely on schedule, will together with the in the meantime realised commercial successes lay the foundation for a substantial result recovery in 2004. The earlier provision of EUR 5.8 million could be reduced to EUR 5.0 million after taxation.
Media Partners
Media Partners realised an ‘all time high’ profit.
In the markets in which Media Partners operates, the economic recession resulted in pressure on volume at existing projects as well as increased pressure on prices. Fascinating enough, we could see a shifting of media budgets in the direction of these relationship media. A shift that also attracted new players to the market.
The basis for the profit increase was the result of the timely compensation of volume erosion at existing customers by the acquisition of new orders. Programmes aimed at internal productivity improvement subsequently had a material influence on the profit development.
Hilversum, March 11, 2004
ROTO SMEETS DE BOER NV
Executive Board
For further information:
Hans de Jong / Leo van Gelder, tel. +31 356 258 600
Press conference : today 11,00 hrs, Rosarium, Amstelpark 1, Amsterdam
Analist conference : today 14,00 hrs, Rosarium, Amstelpark 1, Amsterdam
 To view the PDF you need Acrobat Reader installed on your computer. You can download it here if you don't have Acrobat Reader on your system.
|
|
 |
