Press release annual report - Royal Copenhagen

PRESS RELEASE
10.03.11
Significant progress by Royal Copenhagen
Royal Copenhagen today publishes its annual results for 2010, with a consolidated turnover of
DKK 470 million, which is 4% higher than the year before.
Operating profits are DK 2.6 million, which is an improvement on the previous year of DKK 128.2
million.
The improvement is the result of increased sales, improved gross margins and reduced costs. The
profit for 2009 also includes significant non-recurrent costs.
The large increase is mainly due to Royal Copenhagen's Danish retail customers in 2010 enjoying
a marked growth in sales of Royal Copenhagen’s products. There was also massive growth in the
business-to-business sector.
The increased sales were achieved in a period in which unprofitable markets and products began
to be phased out of the range, as part of a focused strategy, with a consequent reduction in
turnover.
Mix and match strategy
The progress is a result of the strategy Royal Copenhagen has followed over the last year, in
which the company has reorganised the product range and focused on expanding the classical
sets, while new sets have been developed that appeal to a broader consumer base. All services
are created from the same prototype and thus complement each other. This means they can be
combined so that a person can create their own unique expression. This has brought in new
customers and induced existing customers to buy new components.
“Most of our services are based on a combinatory principle, in which all shapes fit together; only
the decoration varies. The Blue Fluted service may, for example, be combined with the White Plain
or Fluted Mega services. This means that we also reach the target group who wish to dress a table
less formally. This has created a demand which has exceeded our expectations, and has resulted
in Royal Copenhagen working on expanding production capacity”, says Mads Ryder, Managing
Director of Royal Copenhagen.
“We are proud of the profit increase, which shows that we have achieved the first step in the
planned direction, in which our product range and distribution have adapted to our key markets in
Scandinavia and Japan. 2010 has been a busy year. In the first six months, we phased out lossmaking
activities through market, customer, range and organisational adjustments in order to
ensure the company’s future profitability. Especially over the last six months of 2010, we have
been able to reap the benefits of our efforts”, said Mads Ryder, who joined Royal Copenhagen in
September 2009.
“In 2011 we will continue to exploit the huge potential of the Royal Copenhagen brand, through
both product development and an even greater focus on the retail trade. That is why we expect
continued improvement in our operating results”, said Mads Ryder.