Corporate restructuring ends
The coronavirus crisis continued to affect RNB in the fourth quarter,
although to a lesser extent than in the third quarter. The corporate
restructuring has proceeded according to plan, including operational
changes, and the companies are now in good shape as the process comes to
an end at the beginning of November. Operating income and cash flow for
the quarter improved in year-on-year terms.
FOURTH QUARTER, JUNE 1, 2020AUGUST 31, 2020 IN SUMMARY
· Net sales decreased to SEK 326 M (552). · Comparable sales for the Group on all national markets decreased by
-32.8 percent. · Sales for comparable units in Sweden decreased by -35.5 percent,
compared to the market downturn of -18.4 percent. · Operating income was SEK -17 M (-101). · Operating income, excluding IFRS 16 and goodwill impairment, was SEK
-47 M (-36). · Profit after tax was SEK -50 M (-106). · Earnings per share was SEK -0.49 (-3.13). · Cash flow from operating activities was SEK 10 M (-44).
THE PERIOD, SEPTEMBER 1, 2019 - AUGUST 31, 2020 IN SUMMARY
· Net sales decreased to SEK 1,784 M (2,267). · Comparable sales for the Group on all national markets decreased by
-20.2 percent. · Sales for comparable units in Sweden decreased by -20.4 percent,
compared to the market downturn of -12.1 percent. · Operating income was SEK -341 M (-110). · Operating income, excluding IFRS 16 and goodwill impairment, was SEK
-191 M (-45). · Profit after tax was SEK -435 M (-142). · Earnings per share was SEK -5.21 (-4.20). · Cash flow from operating activities was SEK 245 M (49). · In the second quarter, a preferential rights issue raised some SEK
84.8 M before issue expenses. · In the third quarter, Brothers' operations in Finland, including 12
stores and an online platform, were wound down. · In the third quarter, four of the Groups companies started a
process of corporate restructuring.
EVENTS IN THE QUARTER
· A settlement proposal was submitted to the Stockholm District Court
on July 1. The proposal involves an initial payment of SEK 10,000 and 25
percent of the remainder to the companies creditors, implying a write
-down of 75 percent of outstanding debt.
EVENTS AFTER THE END OF THE QUARTER
· The corporate restructuring period was extended by a further three
months to December 23. · The settlement negotiations were held on October 16. Stockholm
District Court approved the settlement proposal on the same date, and
the settlement will become legally binding on November 6. The
reconstructions will end on the same day. · The settlement benefits arising once the arrangement becomes legally
binding are preliminary estimated at more than SEK 200 M for the Group. · Comparable sales decreased by -20 percent in September, in-store
sales were down -26 percent and e-commerce sales increased by 23 percent
compared to the same month in the previous year. However, all operations
have been adapted to reflect the lower sales. · Sales of the first quarter and most probably quarter two will remain
affected by the Covid-19 pandemic, although it is currently hard to
assess the extent of the impact because of the volatile situation.
For further information, please contact:
Kristian Lustin, CEO, Phone +46 8 410 520 00, e-mail:
kristian.lustin@retailandbrands.se
This information is information that RNB RETAIL AND BRANDS AB is obliged
to make public pursuant to the EU Market Abuse Regulation and the
Securities Markets Act. The information was submitted for publication,
through the agency of the contact person set out above, at 7:00 CEST on
22 October 2020.
RNB RETAIL AND BRANDS owns, operates and develops fashion wear, ready-to
-wear clothing, accessories, jewelry and cosmetics stores and e-commerce
that focus on providing excellent service and a world-class shopping
experience. Sales are conducted through the concepts Brothers,
Departments & Stores, Man of a kind and Polarn O. Pyret. The Group has
around 190 stores and e-commerce platforms in 10 countries. RNB RETAIL
AND BRANDS is listed on Nasdaq Stockholm (RNBS).
www.rnb.se (https://www.rnb.se/en/)
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(END) Dow Jones Newswires
10-22-200100ET |