Brügg/Bienne, 26 March 2004 – The Biella Group – the biggest manufacturer of office supplies in Switzerland with a strong presence in central Europe – is suffering from the persistently difficult economic environment. Despite higher sales following an acquisition, profits for 2003 were down 50% on the previous year. No sustained economic recovery is expected during the current business year. A proposal will therefore be made at the Annual General Meeting to waive a dividend.
As the Biella Group stated in a press release on the 2003 business year, both the persistently poor economic situation and cut-throat competition intensified in the second half of 2003. The situation became even more difficult for the Donau Group. Biella-Neher AG was also hard hit by the sharp decline on the Swiss market.
Thanks to the takeover of the Stadtman Group, consolidated sales were up by CHF 13.8 m or 8.3% to CHF 179 m (2002: CHF 165 m). However, consolidated profit for the Biella Group fell from CHF 2.8 m in 2002 to CHF 1.4 m.
Given that the sales and earnings trend deteriorated in the first two months of the current year and as the market situation is unlikely to improve in the near future, the Board of Directors and Group management team decided to review their plans to expand into eastern Europe following the acquisition of the Donau Group in 2001. The related financing requirements mean that only some of these plans can be implemented. Managing the available resources takes top priority in order to safeguard the Group’s still-healthy balance sheet. The Board of Directors will therefore propose to the Annual General Meeting on 3 May 2004 that payment of a dividend for the 2003 business year be waived.
The Biella Group has greatly strengthended its international profile since 2001. It now has produciton facilities in Switzerland, Austria, Hungary and the Netherlands, logistics centres in Brügg/Bienne and Wiener Neustadt and its own international distribution network. Its market presence is based on the well-known "Biella", "Donau" and "Stadtman-Kadee" brands.