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[August 2001]
Interim Results for Sanitec
Sanitec Group net sales for the six months ended 30 June 2001 amounted to 517.7 million euros, compared to 449.1 million euros for the same period last year. The main contributor to the total increase of 15.3% was the acquisition of Twyfords Bathrooms in January 2001. Organic growth was 2.6%. The operating profit improved by 23.7% to 45.9 million euros, representing 8.9% of net sales. Excluding Twyfords bathrooms, the operating profit increased by 18.9%. The second quarter operating profit margin was 9.4% compared to 8.3% in the first quarter.
Sales performed well in the Scandinavian countries and also in the Benelux area. Sales to the Russian market also developed positively. Markets in many Central European countries - especially in Germany - remained slow. The acquisition of Twyfords opened up a major new market for Sanitec in the UK. Market demand there was also sluggish in the first half of the year.
Integration of Twyfords continues as planned and profitability improvements are to be expected during the second half of this year. The restructuring measures carried out in Sphinx are bringing results and Sphinx contributed positively to the financial performance of Sanitec during the first half of 2001. During the second quarter, the improved market situation in Egypt provided Sanitec with a 100,000 euro positive share of profits in the associated company Lecico, although the effect after financial costs and goodwill amortisations after the first six months was still a net loss of 0.5 million euros.
Sanitec also announced that Rob van Brug has been appointed Managing Director of Koninklijke Sphinx BV in Holland. Mr van Brug will assume his new position as of 1 September 2001 when the present Managing Director, Benny Persson, takes early retirement as earlier announced.
ENDS