EANS-Adhoc: Valora Holding AG / Accentuated decline in the press market and increased pressure from parallel imports in Switzerland prompts new appraisal of Valora Group´s overall 2011 objectives - Va

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24.10.2011

Accentuated decline in the press market and increased pressure from
parallel imports in Switzerland prompts new appraisal of Valora
Group´s overall 2011 objectives - Valora Retail meanwhile is gaining
market share in a challenging environment.

The continuing decline in the market for press products became more
accentuated during the third quarter of 2011, resulting in
significantly lower sales. Despite the extensive adjustments the
division has made to its cost structures and its expansion into new
business areas, it is now evident that Valora Services´ results for
the current financial year will no longer be able to compensate for
the shortfall in press turnover of 10 percent it has experienced so
far.

In addition, the current level of exchange rates between the Swiss
franc and the euro mean that the Valora Trade Switzerland business
area now has to contend with a high level of parallel imports by the
retail sector and a general reticence in consumer spending. This is a
second factor weighing on the Valora Group´s overall sales.

Valora´s Retail division, conversely, continues to perform well.
Although overall retail market sales volumes have contracted
significantly, particularly in Switzerland, where they declined by
more than 4 percent during the third quarter of 2011, Valora Retail
Switzerland achieved year-on-year sales growth of above 2 percent in
the same period, thus demonstrating that it has so far successfully
overcome current market challenges. Declining press revenues have
been more than made up for by the increase in food sales. Progress
achieved through initiatives from the "Valora 4 Growth" strategy
programme, such as extending the agency business model and the
introduction of a range of new service offerings, is also making a
positive contribution to the Retail division´s performance.

Given the substantial adverse factors affecting the results of its
Services and Trade divisions, Valora now expects to achieve an
operating profit (EBIT) for the current financial year of some CHF 70
million, instead of an EBIT result of at least CHF 81 million
communicated hitherto. Valora will review its 2012 targets when the
2011 results have been finalised, based on the assumption that
trading conditions next year are unlikely to improve significantly
and taking into account the further acquisitions projected as part of
the Group´s growth strategy. As Thomas Vollmoeller, the Valora
Group´s CEO, puts it, "We remain committed to our growth strategy and
the medium-term profitability objectives inherent in it. Although the
performance of the press market is unsatisfactory for us, we remain
confident that we will achieve our objective of generating an EBIT
margin of three percent next year."

Further inquiry note:
Investor Relations: Tel: +41 58 789 12 20
Mladen Tomic E-Mail: mladen.tomic@valora.com

Media Relations: Tel: +41 58 789 12 01
Stefania Misteli E-Mail: stefania.misteli@valora.com

end of announcement euro adhoc
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issuer: Valora Holding AG
Hofackerstrasse 40
CH-4132 Muttenz
phone: +41 61 467 20 20
FAX: +41 58 789 12 12
mail: info@valora.com
WWW: www.valora.com
sector: Retail
ISIN: CH0002088976
indexes:
stockmarkets: stock market: BX Berne eXchange, Main Standard: SIX Swiss Exchange
language: English