Valora confirms turnaround

Valora, the internationally active Swiss retail group, tripled its net profit in the first half of 2006 to CHF 26.6 million. The improved first-half result was achieved primarily through efforts on the cost side, the Group reports. The Valora Group reported a slight year-on-year increase in sales from CHF 1.412 billion to CHF 1.432 billion. The increase was mainly attributable to the Valora Trade division. Operating profit amounted to CHF 39.3 million, double the previous year's figure. According to the consumer goods group, these results show that the cost-cutting measures introduced and the restructuring of its retail activities in Switzerland are beginning to bear fruit, with Valora Retail's net revenues declining mainly due to the closure of unprofitable kiosk outlets and the profitability of its wholesale activities. By contrast, the acquisition of six new outlets at Valora Retail Germany boosted sales by CHF 7.1 million. The sale of Panini collector's cards for the World Cup was a sales success in all countries and exceeded all expectations. Valora confirms its previous outlook for this and next year. The operating profit margin is expected to reach between 2.8 and 3 percent in 2006 and 4 percent in 2007.