30/03/2007
HAMBURG, Germany, March 30 /PRNewswire/ --
- Record Figures in 2005 Cannot be Topped - New Sex Style Opens
Growth Opportunities
The erotica group Beate Uhse is well positioned for the future. The
company has more than tripled its annual turnover since its stock market
flotation in 1999 from EUR 85.7 million at the time. In terms of turnover and
pre-tax earnings it was not possible to top the exceptionally good financial
year of 2005, but the after tax earnings of euro 10 million was the third
best result in the history of the company. The Board of Directors has decided
to pay a dividend of 0.10 euro per share on June 25, 2007
Beate Uhse remains the strongest company in the sector with
turnover of EUR 270 million and profits of EUR 12 million. 'There can be no
question of a crisis in any case', emphasises board spokesman Otto Christian
Lindemann, 'we are the trailblazer in the erotica business and set the pace.'
The sector is experiencing an upheaval. Beate Uhse is equipped to deal with
the altered market like no other company and is on the offensive with five
core concepts:
- The Beate Uhse brand will be established as the core brand
in all countries and in all distribution channels (with a few
country-specific exceptions)
- The products will be marketed in a multi-channel system
- The share of own labels in the product portfolio is expected
to rise from the current 10 percent to 50 percent in the medium term. The
group's own product range under the Beate Uhse brand will set new trends and
quality standards in the erotica market
- The lifestyle concept launched with the Munich flagship
store will be gradually developed
- The Internet and mail order will be merged into a
home-shopping centre
Speculation of a break-up groundless
The news that Ulrich Rotermund, the main shareholder and son
of the company's founder, wishes to withdraw as a shareholder has attracted a
lot of interested parties. This shows that Beate Uhse is an interesting,
sound company that is equipped for the future and has a high growth
potential. 'We are very positive about a new partner', Lindemann comments
about the approaching sales negotiations, 'I consider a break-up of the
company ruled out, regardless of whether a private equity fund or a strategic
partner joins us.'
New mail order record
The mail order division was waiting with good news in the
second week of March: a new weekly record was set with 116,000 packages.
After the water damage in December 2006, which of all things paralysed the
complete company in the middle of the Christmas business and led to palpable
losses of turnover of over EUR 15 million, the mail order division is on the
right track again to link up with the strong growth rates of the past. With
turnover of EUR 113.8 million (EUR - 11.2 million) and a minus of EUR 2.2
million in the pre-tax result, development in 2006 was disappointing.
Flagship store in Munich sets new standards
The flagship store in the heart of Munich launched in February
2007 has started up very well. The first assessments confirm that the concept
is taking hold.
Predominantly pairs and women come to shop in the new store.
Not only the atmosphere but also the range are a success: sex toys and
lingerie are the biggest turnover generator at 70 percent. The Dortmund Beate
Uhse shop will be converted to this concept within the first half of the year
and others should follow after a location analysis. Beate Uhse is therefore
showing that it is a trendsetter in the erotica market and is adapting to
changed market conditions. In 2006 the hot summer led to incalculable losses
in turnover, which reduced last year's turnover by EUR 2.6 million to EUR
86.5 million. The pre-tax result at EUR 4.4 million was lower by EUR 2.5
million.
Wholesale is world leader
The wholesale warehouse that entered service in Almere (the
Netherlands) in 2004 has definitively overcome initial problems and
established itself as a globally known purchasing centre for erotica
articles. Completely new sales opportunities are also opening up in wholesale
due to changed consumer habits. Media Markets in the Netherlands were already
supplied with sex toys in 2006. Turnover was increased by EUR 2.5 million to
EUR 54.7 million. The pre-tax result was at the 2005 level at EUR 2.8
million.
Entertainment holds its ground in a fast developing market
With the introduction new Internet presence under
www.beate-uhse.com a portal was inaugurated that offers the customer
everything under one roof - from online shopping and entertainment to current
offers from the stationary retail outlets. The website is being developed
after its excellent start under the label Beate Uhse international. IPTV is
in the trial phase. Turnover was down compared with the previous year due to
the changeover to the new added-value phone number 0900, which led to reduced
refunds. At EUR 16 million, turnover remained EUR 2.5 million below the
previous year's level. In contrast, with an increase in results from EUR 2.6
to EUR 3.0 million the entertainment division was the best performer in the
group
A sector in upheaval - Beate Uhse defines a new 'sex style'
New lifestyle trends are opening up new growth opportunities.
The sector is experiencing an upheaval. Sex and erotica are increasingly
developing from a niche product into a consumer article that is part of
normal everyday life. A completely different self-image and change in values
are emerging with the elimination of taboos linked to the subject and the
social transition. Tomorrow's consumer wants sex with style and indulgence.
'We can see a massive trend towards an active erotic
lifestyle. Pairs and singles are very consciously designing their erotic
everyday life - with scenarios, accessories and very spicy ingredients. All
of this has very little to do with the old bashfulness of the sex business
and women are increasingly active here. What gourmet cuisine was in the past,
gourmet sex will be in the future', says trend researcher Matthias Horx, who
is planning a study on 'Sex styles 2010' with Beate Uhse.
Beate Uhse is adapting to the changeover and is defining a new
'sex style:' with contemporary store concepts in good city locations and
inspiring product lines. A product range is being developed under the group's
own label that is tailored to individual lifestyles: bedroom accessories to
create a personal temple of desire, sexy night life articles for hot disco
nights, perfumes that envelope the user in alluring clouds of desire, a music
and film repertoire on the theme 'Love is in the air', love jewellery and
'Fit for love' products for the leisure and sports aware. With its 60 years
of expertise in sex and erotica matters and the brand's unbeatable strength
Beate Uhse will also stay ahead in the future in an increasingly contested
market and show: 'sex sells'.
Pictures and graphics are available for download on
www.beate-uhse.ag
For further information please contact:
Beate Uhse AG
Assia Tschernookoff
Gutenbergstrasse 12
24941 Flensburg
Germany
t. +49-(0)461-99-66-125
m. +49-(0)170-63-63-637
atschernooko
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