Business news : Lafuma: Heavy loss in the first half and proposed reorganization of the Group

The Board of Directors met on 10/06/2013, approved the interim financial statements for 2012/13. Audit procedures were performed. The auditors have completed their audit work and their reports are being issued.

2012-13 1st semester: sharp drop in operating income, depreciation of assets

March 31, 2013, the operating loss was EUR 4.3 million against a profit of EUR 5.35 million in the first half of the previous year, mainly due to the decrease in sales of 15 , 4%.

The net result was a loss of EUR 60.0 million after taking into account several non-recurring items, in particular:
- a revised estimate of reserves on stock and receivables amounting to € 11.7 million, to take into account the negative evolution of our markets and the Group's activities;
- a total depreciation of the mark and the goodwill recognized Oxbow for € 37.1 million acquisition;
- a loss on assets held for sale and discontinued operations of € 3.5 million.

The Group's profitability has been severely impacted by the decrease in sales Oxbow (- 35%) in a general context of declining surf market and the consequent deterioration of its losses.

Due to a decline in all markets, the outdoor activity Lafuma (textiles, equipment, shoes) is also negative.

However, the furniture business (in the Lafuma brand), as well as Millet and Eider brands (clothing and mountain equipment) continue to show a positive operating result in a less severely affected by the crisis environment.

A draft comprehensive reorganization of the Group

A new strategic plan 

The Lafuma Group has defined a new strategic plan to ensure the future of business and brands in trouble and boost the development of those beneficiaries.

This plan provides for the organization of the Group around three poles:
-"Outdoor and Mountain" with Lafuma, Millet and Eider brands that are grouped on the Annecy site -"Furniture" on the Anneyron site
- "Surf" with the Oxbow brand on the site Merignac.

These three clusters are fully operationally autonomous, with pooling only logistics and IT.

This new organization will enable the Group to use its technical expertise in outdoor and mountain activities and confirm its international potential. At the same time, the operational autonomy to ensure each cluster resources to focus on the specific needs of its market and its brands, and its development.

To ensure the success of this plan, the Group confirms its intention to implement a capital increase significantly under a refinancing plan whose implementation is in the active phase of negotiations with banking partners.

The announcement of two backup plans in employment (PSE)

Under this project, the Group announced today the representative bodies of the SIU Lafuma and Oxbow those two reorganization plans of their activities.

The plan for Lafuma consider resizing the Lafuma Outdoor activity, its transfer to the Annecy site now hosts Millet and Eider brands and streamlining support functions. It would result in the transfer of 46 positions (to Annecy) and the elimination of 78 positions (60 to Anneyron). The Anneyron industrial site would be strengthened as a central base of the furniture business.

The reorganization of Oxbow result in the loss of 83 jobs with the closure of the logistics platform whose activity is taken up by the Group platform.

The outlook for the

Given the backlog for the Autumn-Winter 2013 collections, the decline in sales is expected to continue but slow in the second half of 2012-13 and the following quarter. This decline significantly affect the Group's results for the year 2012-13.

Operational improvement actions, measures to reduce costs, focus on profitable distribution channels and restructuring projects should lead to a gradual reduction in current operating losses Lafuma Group in the coming years.

Lafuma (Paris:LAF) :

Millions d'euros		S1 12/13		S1 11/12 PC*		Change N/N-1 PC*
Turnover		102,9		122,4		-19,4 M€
Current operating income		-4,3		5,3		-9,6 M€
Operating profit		-58,4		4,8		-53,2 M€
Net income Group Share		-60,0		0,9		-60,9 M€
Millions d'euros		S1 12/13		11/12 PC*		Change N/N-1 PC*
Net Debt		36,2		17,2		19,0 M€

*: PC - like basis (excluding Country and Ober activity)

Lafuma is listed on NYSE Euronext Paris. Euroclear: 3526. Reuters: LAFU.PA. Bloomberg: LAF FP

Lafuma infos-finance@lafuma.fr or
NewCap. Sophie Boulila / Emmanuel Huynh - Tel: 01 44 71 94 91 / lafuma@newcap.fr or
A Anneyron Christine Baudelaire - Tel: 06 80 99 61 21 or
A Merignac, Anne-Laure German - tel. : 06 99 97 05 59