RNB’s integration of the Norwegian Polarn o Pyret-stores is in its final phase.
”We will focus on reaching profitability in Norway and Holland”, says CEO Magnus Håkansson who reported a ”milestone” as RNB shows positive operating figures for the first time since 2010.
RNB posts a positive operating income for the financial year 2013/2014. The fourth quarter showed stronger sales in comparable stores than the market and also a positive result.
”With this, combined with strong collections, we are now looking forward to further increase profitability and develop our concepts”, states RNB.
On November 1, 2013, RNB Agreement entered into an agreement to divest the JC chain to Denim Island AB.
Operating income for Q4, regardless of the divested operation (JC), amounted to four million SEK which is 103 million SEK less than last year excluding JC. Profit before tax amounted to three million SEK (-104)
”The improvement was due to positive effects from restructuring efforts and from strong fall collections, which generated very strong sales during August in all three concepts”, comments CEO Magnus Håkansson.
During the first quarter, Polarn O. Pyret entered into an agreement to acquire 100 percent of the shares in WAM AS in Norway. WAM AS was the master franchisee of Polarn O. Pyret in Norway. The acquisition was completed on January 2, 2014.
”We are now in the final phase of completing the integration work ands we expect that the Norwegian operations will gradually make a positive contribution to earnings during the next fiscal year”, comments Magnus Håkansson.
Magnus Håkansson also says turn-around efforts are underway in the dutch PoP-stores and are expected to substantially reduce the operating loss next year.
International expansion with PoP will be put on hold while working with Norway and Holland.
For the Brothers-chain, RNB sees positive market effects but don’t expect positive operating income until 2015/2016.
The Department & stores-division is considered well positioned with continued good performance.