Brügg/Bienne, 24 March 2006 – The Biella Group, Switzerland's biggest manufacturer of office supplies with a strong presence in central and eastern Europe, significantly improved its earnings in 2005 thanks to a two-year programme of refocusing and restructuring.
Despite a challenging environment, 2005 was a very successful year for the Biella Group, thanks to the refocusing and restructuring measures it has carried out over the past two years. The market continued to suffer from weak growth in the western European economy generally, although eastern Europe kept up its economic momentum. Conditions are still difficult in the paper, office supplies and stationery sector, owing to further pressure on prices and margins.
In 2005 financial year, the Biella Group significantly improved its results despite a drop in sales. Net sales fell to CHF 163.9 million (previous year: CHF 174.5 million) as a result of the sale of the illustrated calendar business. However, the operating result (EBIT) rose sharply from CHF 1.9 million to CHF 6.5 million. Group net income (before minority interests) almost doubled, from CHF 1.9 million in the previous year to CHF 3.7 million. This figure includes further provisions of CHF 3.6 million for restructuring and vacant premises at the Donau Group.
The Biella Group is in a strong financial position. Cash flow from business activities improved dramatically from CHF 10.8 million to CHF 17.4 million, amounting to 10.6% of net sales (previous year: 3.8%). Net liquidity also rose steeply to CHF 24.1 million (previous year: CHF 5.1 million). Special effects as well as operating improvements contributed to this increase. The equity ratio rose to 63% (previous year: 57%) as of 31 December 2005.
The Board of Directors has unanimously decided to list the shares of Biella-Neher AG on the Bern Stock Exchange by the end of 2006. The Biella Group will release further information about the proposed flotation at a press conference to be held on 25 April 2006.
The Biella Group has further strengthened its international profile. It now has production facilities in Switzerland, Hungary, Poland and the Netherlands, logistics centres in Brügg/Bienne and Wiener Neustadt and its own Europe-wide distribution network. Its market presence is based on the well-known "Biella", "Donau" and "Stadtman" brands.
If you have questions, please contact:
Urban Fäh, CEO
+41 32 366 32 98