GROWTH AND IMPROVED PROFITABILITY FOR FRISTADS KANSAS
Fristads Kansas, one of the largest workwear brands for construction and industry, reports a growth of 6 percent for the full year 2015. Operating profit (EBIT) amounted to 5.9 MEUR and Fristads Kansas maintained strong market positions in its home markets Sweden and Denmark, and grew in a number of other markets. At the same time, the Fristads Kansas Group, showed a strong positive trend.
Growth for the Fristads Kansas brand
Fristads Kansas offers a broad range of workwear for building and construction, industry and service and logistics. The Fristads Kansas brand has strong market positions primarily in Sweden and Denmark, but is also growing in Germany, Benelux, Austria, Norway, Finland and the UK.
In 2015, Fristads Kansas increased net sales by 6 percent to 117 (110) MEUR. Operating profit (EBIT) amounted to 5.9 (5.9) MEUR during the same period. During the year, the warehouse and sourcing organisation was moved from Denmark to Sweden. In addition, restructuring programs were implemented in Sweden and Central Europe. The total one-time cost for these measures amounted to 1.9 (1.0) MEUR. Excluding one-time costs, operating profit therefore grew to 7.8 (6.9) MEUR.
- The earnings improvement is a step in the right direction. The growth reflects the strength of the Fristads Kansas brand and is a result of strong sales in our home markets and growth in new markets. It is also a confirmation that we have a solid product range and that the quality of our products and our service is appreciated by our customers, says Anders Davidsson, CEO of Fristads Kansas Group.
Fristads Kansas Group near profitability
The group also includes a number of other brands such as B&C, Wenaas, Bragard and Hejco. Fristads Kansas is, however, the single largest brand of the group and this is the main reason for the new name of the group, Fristads Kansas Group, which was introduced last summer when the Danish private investors Michael Hauge Sorensen and Christian Dyvig acquired the group from IK Investment Partners.
In connection with the takeover of the new owners, a refinancing was done, which gives the group a solid financial platform. At the same time, a new strategy for the group was launched, which aims at significantly more customer and brand focus and greater operational efficiency. It includes the relocation of the headquarters from Malmö to Borås, where Fristads Kansas for a long time has had its Swedish operations. Furthermore, the name change and the move of the headquarters is meant as an indication of the group's Scandinavian origin.
Fristads Kansas Group also had a positive development in 2015. After several years of substantial losses, the trend has been reversed and the group is now close to profitability again. Net sales of Fristads Kansas Group were in line with previous year at 443 (451) MEUR. Operating profit (EBIT before change in value of outstanding currency futures) improved to -3,6 (-44,6) MEUR. The development is a result of a targeted restructuring effort to streamline operations and improve efficiency and drive the group in a much more customer and brand-oriented direction.
- We have found a good model to run the business successfully. We have become more efficient and focused and have become better at exploiting the potential of our brands. We have noticed that customers are more satisfied and the group’s profit improvement shows that we are on the right track. We are continuing to work hard to achieve profitability on the bottom line as soon as possible, says Anders Davidsson.
For additional information please contact Anders Davidsson on telephone: +46 70 545 70 80.
Fristads Kansas Group is Europe’s largest professional wear group with many leading brands including Fristads Kansas, B&C, Wenaas, and Bragard etc. The group is active in design, production and marketing of professional wear for a variety of end-use segments and has strong market positions, especially in Northern Europe. The annual turnover of the group is around Euro 450 million and the head quarter is based in Borås, Sweden. For more information, please go to www.fristadskansasgroup.com.
• Successful turnaround of the Group with positive net income in 2016
• Re-introduction of Fristads as stand-alone workwear brand
During March 2016, Fristads Kansas Group sold Lafont to the French workwear and PPE group Cepovett.
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