PARIS, May 2, 2011 /PRNewswire-FirstCall/ --
- Excellent Results for 2010(1) Confirm the Relevance of the Buildup Strategy
- Gross Revenues(2): EUR36.5 Million
- Pro Forma EBITDA(3): + 600 Basis Points to 18.6%
- Net Income: + 32.2% to EUR1.7 Million
Pro forma accounts (IFRS) Dec 31, 2010 Dec 31, 2009 Change
(EUR'000)
Revenues 34,898 31,071 + 12.3%
Gross margin 19,356 17,377 + 11.4%
% of revenues 55.5% 55.9%
EBITDA 6,502(3) 3,920 + 65.9%
% of revenues 18.6% 12.6%
Financial income / expense - 840 - 1,053
Net income 1,746 1,321 + 32.2%
The consolidated accounts for FY 2010, covering a six-month period and available on the Jemini Group and NYSE Euronext websites, are not representative of the Group's current scope.
The Jemini Group, the specialist for licensed children's products, is releasing its first results since it listed on NYSE Alternext Paris on February 24th, 2011.
"In a delicate climate, characterized by pricing pressures from mass retailers and higher costs for our supplies, the Jemini Group achieved excellent performances in 2010. With the implementation of the first synergies and the launch of the commercial cross-fertilization drive, they confirm the relevance of the buildup strategy we have launched", sums up Sylver Amouyal, Chairman of the management board.
SIGNIFICANT GROWTH IN BUSINESS
Gross revenues(2) came in slightly lower than forecast at EUR36.5 million, following the bad weather in December 2010 which resulted in a lag affecting deliveries and sales. Calculated on a pro forma basis under IFRS, the Jemini Group's revenues climbed 12.3% to EUR34.9 million, while household consumption has continued to falter (+ 2.7% over 2010, source: Insee).
- First cross-fertilization effects
Over the year, the Group has increased its market shares by:
- Expanding its distribution network (large specialist home retailers, toy specialists, e-commerce, etc.) benefiting all of its brands with one dedicated sales force put in place;
- Successfully opening up a new distribution channel - pharmacies - with the launch of a range of childcare items (tableware, stuffed accessories, stuffed toys, etc.), notably under the Hello Kitty license;
- Marketing new leading licenses such as Barbapapa (8% of sales) and Raving Rabbids (4%), the year's big hit;
- Launching new products based on the work carried out by its research and development team (childcare items, storage and decorative furniture range for children's rooms, outdoor games (Fun Play)).
- Diversification of the portfolio of licenses and distribution channels
At the end of 2010, the Jemini Group had a diversified portfolio of licenses combining timeless characters, including Hello Kitty and Disney, as well as characters which are currently in the spotlight, such as Raving Rabbids. It has further enhanced its portfolio by signing up licenses with a bright future ahead of them, from Barbie to Maya the Bee, the Smurfs and Penelope, with products to come out in 2011.
Present across all distribution channels in France, it limited its dependency on the food retail sector to 38% of its revenues in 2010, with no client representing more than 12%. Following the successful trialing of its introduction into the drugstore sector, the Jemini Group is ramping up the development of this new channel.
STRONG GROWTH IN OPERATIONS LINKED TO THE FIRST SYNERGIES
- Sequential improvement in the gross margin
Thanks to the diversification of its distribution channels, its longstanding expertise for sourcing in China, and its strong negotiating position, the Jemini Group has successfully limited the pricing pressures from mass retailers, as well as the increase in manufacturing costs. Over the second half of the year, it improved its gross margin rate, coming in at 55.6%, compared with 55.3% at June 30th, 2010, and 55.5% over the full year.
- Pro forma EBITDA higher than forecast
In light of the reorganization underway and the first economies of scale achieved, pro forma EBITDA(3) is up 600 basis points to represent 18.6% of revenues. It came to EUR6.5 million, higher than the EUR6 million forecast.
In 2011, buoyed by these results, the Group is continuing to move forward with its program to implement synergies and reduce costs, optimizing its logistics and overhauling its IT system.
- Increase in net income
In 2010, net income rose to EUR1.7 million, an increase of 32.2%.
SOUND BALANCE SHEET
The Group is currently raising EUR10.6 million through a private placement, with its listing on NYSE Alternext Paris. At December 31st, 2010, its balance sheet showed EUR20.4 million in net debt for EUR4.2 million in shareholders' equity.
OUTLOOK
Capitalizing on its proven ability to generate strong synergies and achieve major economies of scale, the Jemini Group is going to continue rolling out its buildup strategy, with further acquisitions to follow, while accelerating its internal growth.
(1) The income statements for 2009 and 2010 have been restated on a pro forma basis under IFRS in order to present what the Jemini Group's assets, liabilities, financial position, income and earnings would have looked like if all of the companies acquired or currently being acquired (Jemini, Spel, Funhouse and CTC) had been acquired on January 1st, 2009.
(2) Gross revenues factor in EUR1,620,000 in commercial discounts
(3) 2010 EBITDA is calculated after the implementation of the synergies
underway
Investor / press contact
Calyptus
Marie-Anne Garigue / Grégory Bosson
Tel: +33-1-53-65-68-63 / +33-1-53-65-37-90
Email: [email protected]/[email protected]
SOURCE Groupe Jemini
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