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Groupe Vial SA Announces Details of Restructuring Plan; Issues FY 2013 Operating Profit Guidance


Friday, 21 Dec 2012 11:55am EST 

Groupe Vial SA announced details of a restructuring program aiming to improve the Company's operating margin. An analysis of the Group’s structural costs (excluding Bolivia) has highlighted the need to reduce structural and operational costs by around EUR 10 million a year. The Group is considering reducing its structural costs by, in particular, closing its stores across the Iberian Peninsula, as well as some of its least-profitable stores in France. As announced in the press release of November 8, 2012, Groupe VIAL has decided to close its Spanish stores by the end of the year. In Portugal, the plan is to close the two stores in two phases: December 2012 for the Faro store and May 2013 for the Lisbon store. Regarding the French market, the closures should concern 6 stores that no longer have any profitable growth prospects, as well as a Vial Deco store, as this activity is no longer part of the Group’s sales strategy. Other sales outlets and subsidiaries, as well as some head-office administrative functions, will be the subject of downsizing in order to optimize the Group’s payroll. The Group is refocusing its sales activity in France and Bolivia, the markets that upper management’s analysis shows have the greatest growth potential. The Group is abandoning its Vial Deco activity. The Group aims to break even in terms of operating profitability in fiscal year 2013. 

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