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RSDB HALF-YEAR RESULTS 2004
Net profit doubled in first half of 2004
Sharp result increase expected for full year 2004
2004 HALF-YEAR RESULTS
In the first half of 2004, RSDB realised a net profit of EUR 5.5 million, all but a doubling of the net profit for the corresponding disappointing period of 2003 (EUR 2.8 million). The improvement was mainly the result of a stronger commercial force, the effects of earlier implemented reorganisations and cost reduction programmes, as well as a productivity increase.
Roto Smeets again realised growth of turnover and result, PlantijnCasparie as planned is showing a recovery of its profitability, while Media Partners is hardly losing ground compared to the record year 2003.
With these developments, RSDB is, nationally and internationally, on course for future profits.
Particularly influenced by divestments at PlantijnCasparie, turnover at EUR 270.6 million was 3.8% lower than in 2003 (EUR 281.3 million). Value added declined by 4.6% to EUR 135.9 million (2003: EUR 142.4 million). Lower personnel costs, lower depreciation and lower other operating costs resulted in 7.4% lower total operating costs of EUR 125.4 million (2003: EUR 135.3 million). The operating result (EBIT) increased from EUR 7.1 million in 2003 tot EUR 10.6 million, an increase of 49%. Interest costs declined from EUR 2.9 million to EUR 2.2 million. The net result amounted to EUR 5.5 million against EUR 2.8 million in the first half of 2003. The free cash flow, influenced by increased operating and investment activities, amounted to EUR 7.4 million (2003: EUR 25.5 million). Solvency as at June 30, 2004 was 38.1%, against 36.2% at year-end 2003. With an unchanged number of 3,290,275 issued ordinary shares, profit per share increased by 97% to EUR 1.67 (2003: profit per share EUR 0.85).
PROSPECTS
Although the market conditions are not likely to change substantially in the second half of this year, the consumer market, served by Roto Smeets, is showing signs of volume recovery. The order portfolio of Roto Smeets for the second half of this year confirms this.
At PlantijnCasparie, the reorganisation process is on schedule. The operating companies designated to form part of the strategic concept will make positive contributions to the operating result on an annual basis.
Media Partners responds to budget restrictions by developing new initiatives for the market.
For the whole range of activities, forecasting price developments remains difficult due to the many uncertain factors.
On the basis of the current views, we expect that the result development for 2004 as a whole will show a sharp improvement compared to last year.
THREE BRANDS
The three main brands Roto Smeets, PlantijnCasparie, Media Partners showed the following turnover and result development:
| x EUR 1 mln |
2004 |
|
2003 |
| |
turnover |
operating result |
|
turnover |
operating result |
 |
| Roto Smeets |
205,0 |
8,7 |
|
203,9 |
7,8 |
|
| PlantijnCasparie |
60,5 |
0,8 |
|
73,4 |
-1,9 |
|
| Media Partners |
7,8 |
1,1 |
|
7,4 |
1,2 |
The number of employees, in full-time equivalents, declined from 3,465 at year-end 2003 to 3,288 as at June 30, 2004.
Roto Smeets
Compared to 2003, the relevant North-western European market showed an increase of demand of more than 4%. In the Netherlands, the number of new titles in the magazine segment is encouraging. The majority of these new title introductions was acquired. However, with an unchanged excess of capacity supply, the pressure on prices in the market continues. Roto Smeets processed more than 6% additional volume and thus again increased its market share. Adjusted for the share of paper supplied and paid for by the customers, which is excluded from turnover figures, there was a turnover increase of more than 3%. The earlier implemented actions aimed at productivity improvement are proving to more than just meet expectations and contribute to the fight against price erosion.
All contracts up for renewal earlier in the year were actually renewed.
A new 48 page web offset press was ordered for Roto Smeets Weert. This will further strengthen the position of Roto Smeets Weert in the magazine segment. The introduction of the press is expected to be completed in the first half of 2005.
PlantijnCasparie
Business-to-business market volumes are showing some recovery. The price war continues unabated. Internally, the extensive reorganisation is totally on track: the activities in Breda, Hilversum, Schiedam/Rotterdam and Vlaardingen have been terminated or integrated in the sites in Eindhoven, Utrecht and Capelle, respectively. The final phase, the gradual termination of Heerhugowaard, has almost been completed. The personnel count saw a controlled reduction from 1,134 FTEs at year-end 2003 to 994 FTEs as at June 30, 2004. The operating result for the first half of 2004 contains an extraordinary income item of EUR 1.2 million, the result of a book profit from the sale of property.
Media Partners
The market for relationship media is still under pressure, especially as a result of budget restrictions. With its existing activities, Media Partners will not be able to escape from this. The company especially uses forms of creativity regarding new initiatives to successfully resist this development.
Hilversum, August 19, 2004
ROTO SMEETS DE BOER NV
Executive Board
For further information:
Hans de Jong / Leo van Gelder, tel. +31 35 625 86 00
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