Royal Vendex KBB achieved 8% higher net sales figure

Royal Vendex KBB achieved with its continued activities in the fiscal year 2001/02 a more than 8% higher net sales figure of over € 4.7 billion.

On the basis of 52 weeks the sales growth was 6.9%. Operating income of the continued activities (excl. real estate) was € 252 million (up 2.4%). Business was good to excellent in most of the retail formats. The performance of a few formats (in particular V&D and Modern Electronics) was disappointing and put a brake on the growth of Group results.

The course of business was satisfactory since, after a period of high growth figures, the economy of the countries of relevance to the Group became increasingly less favorable in the course of the year. Consumer spending, too, stagnated. In the Netherlands the growth of domestic consumption was almost halved in 2001. Consumer confidence declined sharply, especially in the second half of the year.

Net income hit by sale of FAO Schwarz and payment to pension funds
The already published sale of the American toy chain FAO Schwarz to the Right Start in the last month of the reporting year and the in September announced payment to the pension funds to strengthen their capital had a considerable impact on net income.
The sale of FAO Schwarz has a negative effect on the operating income (excl. real estate) of the discontinued activities and a positive effect on taxation, resulting on balance in a non-recurring negative effect on the income statement of circa € 78 million.
The payment to the pension funds involved an amount of circa € 48 million, which amount is shown as extraordinary expenditure. The income from real estate was also lower (€ 14 million against € 22 million in the previous fiscal year) and the item Changes in Value showed a very much lower result (€ 6 million compared with € 20 million from the sale of the interest in Gran Dorado in the previous fiscal year).
On balance net income fell from € 160 million to € 13 million. Earnings per share (after preferred dividend) came out at € 0.13 compared with € 1.71 last year.

Net income of continued activities excl. extraordinary expenditure € 135 million
As in the previous year, net income from continued activities amounted to € 135 million. In the determination of net income from continued activities the net effect of discontinued activities, of changes in value and of net extraordinary expenditure is left out of account. After preferred dividend net income per share from continued activities stands at € 1.45 against € 1.43 last year.

After distribution of 8% dividend on the class A and B preferred share certificates, € 134 million remains available from continued activities for dividend on the common share certificates. Upon approval by the General Meeting of Shareholders, an unchanged dividend of € 0.51 per common share certificate will be distributed, this year charged to Other Reserves. Of this, a total of € 0.30 was made payable as interim dividend in September and December 2001. The final dividend will be distributed fully in cash and made payable as of May 23, 2002.

(source> KBB Vendex)

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