Retail Holdings N.V. Announces Strong 2016 Results, Confirms $2.00 Per Share Distribution And Further Stock Repurchases

WILLEMSTAD, Curaçao, March 28, 2017 /PRNewswire/ -- Retail Holdings N.V. (Symbol: RHDGF) -- Retail Holdings N.V. (the "Company"), announced today strong results for the year ended December 31, 2016. Financial highlights include:

• Consolidated revenue from continuing operations was $489.1 million, an increase of 16.9% from prior year, a new record for this group of companies. Revenue at the Company's operations in Bangladesh grew 29.4% from prior year as measured in U.S. Dollars. Revenue in India increased 18.1% and revenue in Sri Lanka increased 12.8%. Revenue growth in local currency was even stronger, increasing 30.3%, 23.7% and 21.1% in Bangladesh, India and Sri Lanka, respectively.
• Results from operating activities were a profit of $42.9 million, an increase of 26.0% from prior year, largely reflecting the flow through of the growth in revenue and lower S&A expenses relative to income.
• Net proceeds of $22.6 million were realized in 2016 from the sale of shares in the Company's operations in Bangladesh, Pakistan and Sri Lanka; this is in addition to $46.3 million realized from divestitures in 2015.
• The Company's after tax profit from continuing operations was $16.3 million in 2016, compared to a loss from continuing operations, net of tax, of $12.2 million in the same period in 2015. The increase in profit of $28.5 million reflects both the absence of any meaningful impairment charge in 2016 (a material impairment loss had been recognized in 2015) and the flow through of the improved results from operating activities, coupled with a lower effective tax rate.
• During 2016 the Company paid a distribution to shareholders of $5.00 per Share and repurchased from shareholders 542,782 shares

The Company's Board of Directors also confirmed an initial 2017 distribution of $2.00 per Share to be paid in the spring of 2017 with the likelihood of paying a further distribution later in 2017, bringing total distributions since the inception of the Company's dividend/distribution program in 2007 to at least $17.75 per Share. The Board of Directors also announced that the Company would continue to opportunistically repurchase shares as justified by market conditions.

Chairman's Comments

Commenting on the 2016 results, Stephen H. Goodman, the Company's Chairman, President and CEO, noted, "I am extremely pleased by the Company's very strong financial performance, with double digit percentage growth both in consolidated revenue and in revenue at each of the Company's operations. I am also pleased by the further progress made during the year in the Company's strategic program to monetize and return to shareholders the underlying value of the Company's remaining assets.

"I am optimistic about the prospects for 2017, in terms of both financial performance - - the individual operations are all off to a very good start - - and likely further progress in our strategic divestment program. Public market sales of additional shares are either already underway or planned in Bangladesh, India and Sri Lanka; the initial results from this effort should be disclosed in the next several weeks. Additional asset sales are planned for later in the year.

"The Company intends to pay an initial distribution of $2.00 per Share in the spring, with a further distribution anticipated later in 2017, to be determined, in large part, by the amount of proceeds from this year's divestments.

"I encourage all shareholders to read the 2016 Summary Annual Report and the Audited Consolidated Financial Statement and Notes, which will be available in the next several days at the Corporate/Investor section of the Retail Holdings website: www.retailholdings.com, and can be obtained free of charge by email, telephone or regular mail request to the Company.

"I extend my sincere thanks to my fellow employees and directors for their considerable effort in making 2016 a success, and thank all of the Company shareholders for their continued support."

About Retail Holdings

Retail Holdings N.V. is a holding company with one principal asset: a 54.1% equity interest in Sewko Holdings Limited ("Sewko"), the parent company of Singer Asia Limited, a distributor of consumer durable products through subsidiaries in Bangladesh, India and Sri Lanka, with consumer credit and other financial services available to qualified customers. Retail Holdings N.V. has no operating activities other than those carried out through Sewko/Singer Asia.

Additional financial and other information about Retail Holdings N.V. may be found at the Corporate/Investor section of Retail Holding's website: www.retailholdings.com. Price quotations for Retail Holdings shares are available on the "Pink Sheets" quotation service under the symbol "RHDGF".

For further information, please contact Amy Pappas at 1-914-241-3404.

INFORMATION CONTACT
Amy Pappas at (914) 241-3404

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SOURCE Retail Holdings N.V.