Allerød, 2013-11-27 07:58 CET (GLOBE NEWSWIRE) -- H1 2013/14 revenue grew 4.4% to DKK 1,582.1 million. Like-for-like revenue grew 3.2% in H1 and 3.9% in Q2 2013/14. EBIT was DKK 185.3 million and was affected by non-recurring IPO-related costs of DKK 28.1 million. Net of these non-recurring costs and amortisation of trademarks, the adjusted EBIT margin rose to 15.9% from 15.7% last year. Performance was in line with expectations, and the guidance for FY 2013/14 is retained.
"In light of the market situation with consumers continuing to be reluctant, we are pleased to have generated 3.2% like-for-like growth in our stores in the first half of FY 2013/14. We are grateful for the loyalty our customers show us, and we will continue to work hard to retain and expand our position in the market, which is essential in order for us to continue to create shareholder value," said CEO Terje List.
- Revenue in H1 2013/14 rose 4.4% to DKK 1,582.1 million year on year. The like-for-like growth rate in stores trading in H1 of both this year and last year was 3.2%. Revenue in Q2 was up by 5.2% to DKK 779.1 million. The like-for-like growth rate in Q2 2013/14 was 3.9%.
- Gross profit in H1 2013/14 was DKK 722.2 million, corresponding to a gross margin of 45.6% (H1 2012/13: 45.1%). The increase was partly the result of the establishment of the new distribution structure for High-end Beauty products. The gross margin for Q2 2013/14 was 44.7%, which was unchanged from Q2 2012/13 and was related to normal fluctuations offsetting a positive underlying development from the changed distribution structure.
- EBIT was DKK 185.3 million and was affected by non-recurring IPO-related costs of DKK 28.1 million. Net of these non-recurring costs and amortisation of trademarks, adjusted EBIT grew by 5.6% to DKK 251.6 million, corresponding to an adjusted EBIT margin of 15.9% (H1 2012/13: 15.7%). The adjusted EBIT margin for Q2 was 14.9%, which was slightly higher than the margin of 14.7% achieved in Q2 2012/13.
- Profit after tax for the period was DKK 108.9 million, and adjusted profit after tax net of IPO-related costs and amortisation of trademarks was DKK 162.3 million (H1 2012/13: DKK 138.4 million).
- The free cash flow was DKK 74.3 million (H1 2012/13: DKK 145.8 million). The free cash flow in Q2 2013/14 was DKK 71.1 million (Q2 2012/13: DKK 56.1 million). Inventories were reduced as compared to Q1 2013/14, but remained temporarily high as a result of the new central warehouse for High-end Beauty products, inventories taken over in connection with acquisitions, and the opening of new stores.
- Net interest bearing debt was DKK 1,719.4 million at 30 September 2013, equivalent to 2.8 times LTM adjusted EBITDA.
- The roll-out of the StyleBox concept continues, and as of today, there are five stores in operation.
- Matas received decisions in Q2 2013/14 in two pending cases with the Danish tax authorities regarding the deductibility of transaction costs and withholding of tax in the years 2006-2009. In both cases, the decisions went against Matas. Matas disagrees with the decisions and intends to appeal them.
- After the end of H1, agreements have been made to take over six associated stores on 1 November 2013 and to extend the trading terms subject to certain changes for 28 out of 29 of the remaining independent stores until 31 October 2025.
Outlook for 2013/14
The outlook for revenue growth and adjusted EBIT margin for 2013/14 is unchanged:
- Revenue growth, excluding StyleBox and acquisitions of associated stores, is expected to be slightly higher than the 3.3% revenue growth in 2012/13, primarily because of an expected improvement of like-for-like growth.
- The adjusted EBIT margin, which excludes non-recurring IPO-related costs and operating costs related to StyleBox and Esthetique, is expected to be on a level with or slightly higher than the adjusted EBIT margin in 2012/13 of 17.1%.
- The outlook for operating costs in connection with the start-up of StyleBox and the continuation of the Esthetique stores acquired is unchanged and expected to be in the range of DKK 7-10 million.
Conference call
Matas will host a conference call for investors and analysts on Wednesday, 27 November 2013 at 10:00 a.m. The conference call and presentation will be available on our investor website: investor.en.matas.dk.
Conference call access numbers for investors and analysts:
DK: +45 32 72 80 18
UK (international): +44 (0) 1452 555131
US: +1 866 682 8490
