EANS-Adhoc: Valora Holding AG / Valora Group reports improved profitability and further successes from its "Valora 4 Success" strategy

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Valora Group reports improved profitability and further successes
from its

26.08.2010

Valora Group reports improved profitability and further successes
from its "Valora 4 Success" strategy

- Sales grow by 1.2%
- Group operating profit up 55% - EBIT margin rises from 1.6% to 2.5%
- Net income advances more than 40% to CHF 26.0 million
- "Valora 4 Success" strategy on track
- Valora Retail´s trajectory to higher profitability confirmed
- Valora Services rekindles its success
- Valora Trade: growth potential with new principals
- Outlook: from turnaround to growth phase

Sales grow by 1.2%

Valora today reported consolidated net revenues of CHF 1 431.9
million for the first six months of 2010, up CHF 17.3 million (+1.2%)
on the same period of 2009. After adjusting for the special factors
arising from the sale and distribution of World Cup collectible
football picture cards (CHF +38.3 million) and currency fluctuations
(CHF -16.4 million), the Group´s net revenues declined by CHF 4.7
million on first-half 2009 levels.

The Retail division generated first-half 2010 net revenues of CHF
792.0 million, 1.8% up on the CHF 778.1 million achieved a year
earlier. CHF 9.3 million of this increase was attributable to sales
of World Cup picture cards, which was however almost entirely
cancelled out by the effect of adverse exchange rate fluctuations
amounting to CHF 9.1 million, so that the improvement in net revenues
remains 1.8% after adjusting for these two factors. With the
exception of its gastronomy unit, all the division´s businesses
contributed to this improved performance.

Valora Services´ net revenues for the first six months of 2010 were
CHF 375.1 million, an 8.7% improvement on the CHF 345.1 million
achieved in first-half 2009. Distribution and sales of World Cup
picture cards contributed CHF 29.0 million to net revenues, while
adverse exchange rate movements shaved CHF 4.8 million off this same
figure. Adjusting for these factors, the division achieved net
revenue growth of 1.7%. Most of this improvement came from tobacco
wholesale activities in Switzerland and press wholesaling in Austria.

In the face of tough market conditions, Valora Trade generated net
revenues of CHF 348.8 million, 8.5% lower than in the same period of
2009. After adjusting for adverse currency effects (CHF -3.1
million), this division´s first-half 2010 net revenues declined 7.7%
on the level achieved a year earlier. Expiration of existing
distribution agreements was a major factor impacting Valora Trade´s
sales in the period, particularly in Germany, where the division´s
turnover fell 45%.

Group operating profit up 55% - EBIT margin rises from 1.6% to 2.5%

The Valora Group completed the first six months of 2010 with a 55%
improvement in its operating profit (EBIT), which reached CHF 35.7
million compared to CHF 23.0 million a year ago. As a result,
Valora´s EBIT margin for first-half 2010 was 2.5% (vs 1.6% in
first-half 2009). Rigorous cost management, enhanced efficiency
levels - particularly in logistics - and measures to streamline
retail outlet shift rota planning all helped to cut operating costs
by CHF 6.5 million. In first-half 2010, operating costs accounted for
28.1 % of net revenues. Overall, the distribution and sale of World
Cup picture cards added CHF 6.3 million to operating profit. After
stripping out this effect, and the CHF 0.8 million of adverse foreign
exchange movements, the Group´s adjusted operating profit rose 31.3%
on first-half 2009 levels, while its adjusted EBIT margin improved by
0.5 percentage points to 2.1%.

Including the special factors of World Cup picture cards and currency
fluctuations, Valora Retail improved its operating profit by CHF 3.6
million to CHF 13.7 million and raised its EBIT margin to 1.7% (vs
1.3% in first-half 2009). Valora Services achieved a first-half 2010
operating profit of CHF 20.4 million, an increase of CHF 13.3 million
on first-half 2009. The division´s EBIT margin rose to an impressive
5.4%, of which 1.1% are attributable to the distribution and sale of
World Cup picture cards. Valora Trade reported operating profit of
CHF 5.1 million, down from CHF 7.4 million in the same period of
2009. Although the division achieved considerable cost efficiency
savings, these were not sufficient to compensate fully for the
decline in net revenues. Valora Trade´s first-half 2010 EBIT margin
was 1.5% (after 1.9% in first-half 2009).

Net income advances more than 40% to CHF 26.0 million

During the first six months of 2010, the Valora Group increased its
net income by 43.8% to CHF 26.0 million. The proportion of total
assets represented by shareholders´ equity rose by 1.1 percentage
points to 42.4%. Despite the increased dividend the Group paid out in
respect of 2009, the Valora Group was virtually free of net debt at
June 30, 2010.

"Valora 4 Success" strategy on track

The new corporate strategy initiated in 2008 continues to bear fruit
and will be 80% complete by the end of 2010. The programme´s various
initiatives have already generated positive results in the Group´s
individual divisions and will exert an increasingly beneficial effect
in the years to come.

Valora Retail´s trajectory to higher profitability confirmed Valora
Retail Switzerland´s results showed a pleasing improvement in the
first six months of 2010. The division´s product ranges continue to
be extended, particularly in services (money transfer, insurance,
travel) and the expansion of the successful P&B format is progressing
according to plan. Although the network of convenience- and filling
station stores developed less quickly than anticipated, the sales per
outlet nevertheless rose as expected. A new co-operation agreement
signed with the filling-station operator Tamoil will mean that
expansion of the convenience format network can be accelerated. New
types of distribution arrangement (agency and franchising models)
will also help the division to achieve its growth targets. As a
result of its acquisition of tabacon Franchise GmbH & Co. KG, Valora
Retail Germany will nearly double the size of its outlet network and
advance to become the second-largest small-outlet retailer in the
German market.

Valora Services rekindles its success Valora Services achieved a
further reduction in its operating costs, as most noticeably
demonstrated by the benefit it derived in first-half 2010 from the
improved efficiency of its logistics operations in Switzerland and
its lower external logistics costs in Austria. Ongoing enhancements
to its services will enable the division to stabilise its revenues
and maintain profitability at the levels to which it has now raised
them.

Valora Trade: growth potential with new principals Valora Trade held
up well in demanding market conditions. Although the sale of the
division´s production companies (Own Brands) has resulted in some
distribution contracts not being renewed and this has depressed
turnover, Valora Trade is confident that its new principals will
enable it to resume growth in the medium term and to continue raising
its efficiency levels.

Outlook: from turnaround to growth phase

The successes Valora has achieved in the first six months of this
year with regard to cost efficiency and productivity not only
highlight the importance of the Group´s strategy programme but also
provide a sound platform for future growth.

Valora will vigorously pursue its current trajectory in the second
half of 2010 and the Group is confident that the objectives it has
set itself can be achieved, absent the effect of currency
fluctuations.

In the late autumn of 2010, the Valora Group´s Board of Directors
will present the medium and long-term strategy it has developed.
Taking its cue from the successes already achieved by the "Valora 4
Success" programme, the medium and long-term plan will emphasise the
Group´s future potential for growth. As Thomas Vollmoeller, Valora´s
CEO puts it, "We are satisfied with the results achieved in the first
half of this year. It is now time for us to shift our focus from
turnaround to growth."

Valora Group key financial data

Income statement

in CHF million
H1 2010 H1 2009

Net revenues 1431.9 1'414.6
Adjusted net revenues* 1'409.9 1'414.6
Gross profit 433.7 428.3
Gross profit margin 30.3% 30.3%
Operating expenses -402.3 -408.8
Operating profit (EBIT) 35.7 23.0
EBIT margin 2.5% 1.6%
Adjusted operating profit (EBIT)* 30.2 23.0
Adjusted EBIT margin* 2.1% 1.6%
Consolidated net income 26.0 18.1

* adjusted for effects of currency fluctuations and World Cup 2010 picture cards

Liquidity, balance sheet

in CHF million
30.06.2010 31.12.2009
Cash and cash equivalents 142.3 161.6
Shareholders´ equity 436.5 453.7
Equity cover 42.4% 41.3%
Net debt / (net liquidity) 0.9 -15.8

Key financial metrics for Valora divisions

Key metrics Retail Services Trade
in CHF million

H1 2010 H1 2009 Diff. H1 2010 H1 2009 Diff. H1 2010 H1 2009 Diff.
Net revenues 792.0 778.1 +1.8% 375.1 345.1 +8.7% 348.8 381.2 -8.5%
Adjusted net revenues*
791.7 778.1 +1.8% 351.0 345.1 +1.7% 351.9 381.2 -7.7%
Operating profit(EBIT)
13.7 10.1 +35.4% 20.4 7.1 +185.6% 5.1 7.4 -31.5%
Adjusted operating profit (EBIT)*
12.0 10.1 +18.2% 16.5 7.1 +131.5% 5.2 7.4 -29.6%
EBIT margin 1.7% 1.3% +0.4pP 5.4% 2.1% +3.3pP 1.5% 1.9% -0.4pP
Adjusted EBIT margin*
1.5% 1.3% +0.2pP 4.7% 2.1% +2.6pP 1.5% 1.9% -0.4pP

* adjusted for effects of currency fluctuations and World Cup 2010
picture cards

The following documentation is available for download on
www.valora.com

Half-year report 2010 http://www.valora.com/media/documents/english/r
eports/2010/halbjahresbericht_2010_en.pdf

Media release
http://www.valora.com/en/newsroom/newsinformation/news_00339.php

Presentation on 2010 first-half results http://www.valora.com/media/d
ocuments/english/presentations/2010/praes_halbjahresabschluss_2010.pd
f

*****************************
Valora Telephone Conference - Half Year Results 2010
Thursday, August 26, 13.30 CET (German) | 14.30 CET (English)

Thomas Vollmoeller, CEO of Valora Holding AG, and Lorenzo Trezzini,
CFO, will provide information about the Valora Half Year Results 2010
during a telephone conference. The Dial-In Conference Call will be
held in German (13.30 CET) and in English (14.30 CET).

To participate in the conference please call the following number 5
to 10 minutes before the respective time:

Europe +41 (0) 91 610 56 00
UK +44 (0) 207 107 06 11
USA - Toll-Free +1 (1) 866 291 41 66

A playback of the conference will be available one hour after the
conference call for 24 hours. Participants requesting the Digital
Playback will be dialing:

Europe +41 (0) 91 612 43 30
UK +44 (0) 207 108 62 33
USA +1 (1) 866 416 25 58

and will be asked to enter the Conference number 16421 (German) or
19108 (English) followed by the # sign. *****************************

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THE UNITED STATES THIS DOCUMENT IS NOT BEING ISSUED IN THE UNITED
STATES OF AMERICA AND SHOULD NOT BE DISTRIBUTED TO U.S. PERSONS OR
PUBLICATIONS WITH A GENERAL CIRCULATION IN THE UNITED STATES. THIS
DOCUMENT DOES NOT CONSTITUTE AN OFFER OR INVITATION TO SUBSCRIBE FOR
OR PURCHASE ANY SECURITIES. IN ADDITION, THE SECURITIES OF VALORA
HOLDING AG HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR DELIVERED WITHIN THE
UNITED STATES OR TO U.S. PERSONS ABSENT REGISTRATION UNDER OR AN
APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE UNITED
STATES SECURITIES LAWS

This document contains forward-looking statements about Valora which
may incorporate an element of uncertainty and risk. The reader must
therefore be aware that such statements may diverge from actual
future events. These forward-looking statements are projections
relating to future possible developments. All the forward-looking
statements contained in this document are based on data available to
Valora at the time this document was prepared. Valora makes no
commitment whatsoever to update forward-looking statements in this
document at a later date, or to adapt them to reflect new
information, future events or the like.

end of announcement euro adhoc
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ots Originaltext: Valora Holding AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Please address any further enquires you may have to:

Investor Relations: Phone: +41 58 789 12 20

Mladen Tomic +41 79 571 10 56

E-mail: mladen.tomic@valora.com

Media Relations: Phone: +41 58 789 12 01

Stefania Misteli +41 79 467 52 16

E-Mail: stefania.misteli@valora.com

Branche: Retail
ISIN: CH0002088976
WKN: 208897
Börsen: BX Berne eXchange / stock market
SIX Swiss Exchange / Main Standard