The annual report for the toy retailer TOP-TOY characterizes a year of historically big changes in order to ensure that the company is future-proof. The year also offered growth in the BR and TOYS”R”US stores, and the company expects the growth to continue in the year to come.
Today, TOP-TOY presents its annual report for 2015/2016 which – with a turnover of DKK 3,917 million and an adjusted operating result before depreciation (adjusted EBITDA) of DKK 165.4 million – is in line with recent years. The development in the turnover is caused by a rise of 5.9% (adjusted for exchange rate fluctuations) in BR and TOYS”R”US stores in a retail market which is under pressure in general and an expected decline in turnover as a consequence of the closing of the wholesale business NORSTAR at the end of 2015.
The company at the same time reports a decline in net profit which is caused by a number of bigger initiatives, including non-recurrent expenses for pervasive modernisation of all BR stores in the Nordic countries, the moving of the head office and large strategic initiatives, including implementation of new IT systems and essential structural changes following the changed ownership in the beginning of 2016.
“We are happy with the positive growth we have experienced in our retail business during the fiscal year”, says Søren Torp Laursen, CEO in TOP-TOY, and continues: “Naturally, we were also aware of the fact that the many changes we were facing would affect our result negatively; however, it is still not satisfactory. The reason for the result is among other things that we have made many and very significant changes across the business, so that we are now much better equipped for strengthening our position in the years to come”.
In addition, the value of USD increased by more than 20% around the turn of the year 2014/15, and this has resulted in a considerable increase in cost prices at many suppliers. Additionally, the NOK decreased significantly.
“Historically, TOP-TOY has chosen to partly absorb price fluctuations through adjustment of assortment and that affected us last year when big and sudden fluctuations occurred in a number of important currencies. Therefore, we have now increased our focus on this particular area and initiated measures so that in future we will have a better defence against fluctuations on the currency markets”, says Søren Torp Laursen.
Better equipped than ever
With the changes made to become more future-proof, TOP-TOY expects to grow more than the total toy market in the years to come and as an example this past year the company has expanded with 12 stores primarily in Sweden, Norway and Finland.
“We have seen growth in our stores this past year as we have sold more products than the year before.” This way, sales has lived up to our expectations”, says Søren Torp Laursen and continues: “All the positive changes we have made the last year will undoubtedly develop our business in a positive way, and there is no doubt that our many initiatives will enable us to deliver really good results as early as next year.
Read the TOP-TOY’s 2015/2016 Performance report here
Read the press release in Danish here
For additional information, please contact:
VP, Communications and Sustainability
Liselotte Gjerdum Carlsen
email@example.com/ +45 3067 3916