Growth plans on ice

Baumax, the Austrian DIY chain, intends to be making a profit again in three years’ time. This statement came from Martin Essl, group chief executive, in an interview with the Austrian “News” magazine. The dramatic losses of recent years are expected to be repeated in 2012 once again. Essl is quoted as saying, “This year we are moving sideways.” Consequently, the company’s plans for expansion and new investment are being put on ice with immediate effect.Last year Baumax suffered high losses both in its domestic business and in the international markets. The figures show a net loss of € 14.6 mio for Baumax AG (business in Austria and holding company). A profit of € 18.4 mio was achieved as recently as 2010. The year-end results for 2011 were adversely affected by unscheduled depreciation charges of some € 25 mio altogether in Hungary and Croatia. In operational terms Baumax AG achieved a profit of € 13.9 mio, which however amounts to a decline of nearly € 9 mio compared to 2010. The loss suffered by the group – which includes Baumax AG together with all the domestic and foreign subsidiary companies and associate companies – comprised € 57.2 mio (after a plus of € 1.5 mio). The sales of Baumax AG remained stagnant at € 527.4 mio, while group turnover rose slightly to € 1.246 bn, following € 1.220 bn in 2010.