Laurus reduced net loss to €45mn in 2006

The embattled Dutch retailer Laurus recorded a net loss of €45mn in 2006. In 2005 the retailer’s net loss was €66mn. This reduction in net loss happened on a €3.2bn revenue base in 2006, which is lower than Laurus’ 2005 revenues (€3.7bn). This is a result from the divestment of the Edah and Konmar stores.

Following the sale of Edah and Konmar – which allowed Laurus to reduce its debt levels – the retailer is now focusing on its Super de Boer supermarket chain. Super de Boer’s sales level increased by 2.5 per cent last year, but due to ongoing necessary restructuring Laurus expects the 2007 business year to be loss making as well.

Laurus intends to sell 50 stores and it will invest €20mn in modernising existing outlets. Despite this investment, Laurus expects the net loss in 2007 to be substantially lower than the €45mn of last year. For this year the retailer expects Super de Boer’s sales level to be some €2bn.

Also the name ‘Laurus’ will be replaced by a new name, reflecting the new management’s optimism. Earlier this week the new chief executive Jan Brouwer stated that he changed the relation with Laurus’ main shareholder Groupe Casino. The French no longer have direct influence on Laurus’ operations “(…) unless we ask their advice”, Brouwer said.