Calida profits down, but sales hold up

Calida still controls 20 per cent of the Swiss underwear market. www.calida.ch

Swiss underwear maker, Calida, has revealed a net loss of SFr10.1 million ($5.96 million) for last year. However, the group still managed to increase sales by 2.5 per cent to SFr200 million over 1999.

At the company’s annual results press conference on Wednesday, chairman Thomas Lustenberger said Calida had spent the past year sorting out its problems. He promised that the company was now pursuing a “forward-looking strategy” which will put the group “back on the road to success”.

The losses were partly due to weak demand over Christmas and currency fluctuations. The company has said it is committed to “the realistic objective of returning Calida to a solid earnings situation within three years”.

Calida posted an operating loss before extraordinary expenditure of SFr3.1 million for the year 2000. This compares with a loss of SFr2.5 million for the previous year.

In addition, the firm had to revalue certain balance sheet positions owing to the introduction of International Accounting Standards. As a result, additional provisions had to be set aside, resulting in a net additional extraordinary charge of SFr7 million against the annual accounts.

Overall, therefore, Calida recorded a net loss of SFr10.1 million for the 2000 financial year.

According to Calida immediate measures have been introduced, and corporate strategy has been adapted to suit the changed market conditions. On the production side, processes are being simplified and efficiency improved.

“Turnover in the first quarter of 2001 indicates that the new measures are beginning to have an effect on the sales front. Turnover was up by approximately nine per cent in the first three months of this year,” the company said.

Calida controls more than 20 per cent of the Swiss underwear market, making it the country’s favourite brand.

swissinfo with agencies