Allerød, 2014-02-21 07:59 CET (GLOBE NEWSWIRE) -- Q3 2013/14 revenue grew 6.5% year-on-year to DKK 1,018 million. Revenue for the nine months ended 31 December 2013 grew 5.2% year-on-year to DKK 2,601 million. Like-for-like growth in Q3 was 5.5%, and 4.1% for the nine months ended 31 December 2013. Adjusted EBIT was DKK 210 million in Q3 and DKK 462 million for the nine months ended 31 December 2013. The adjusted EBIT margin in Q3 was 20.7%, down from 21.5% in the year-earlier period, primarily as a result of a revaluation of the value of outstanding Club Matas points.
Terje List, Chief Executive Officer, said: "We are pleased to note that the positive sales trend continued through our important Q3 period. We had a very successful Christmas season in terms of both planning of the product range, activities and of our staff's in-store customer service and sales efforts.”
- Revenue in Q3 2013/14 rose 6.5% to DKK 1,018 million year on year. A revaluation of capitalised Club Matas points reduced revenue growth by just over one percentage point in Q3. The like-for-like growth rate, i.e. for stores trading in Q3 of both this year and last year was 5.5%. Revenue for the nine months ended 31 December 2013 grew 5.2% year-on-year to DKK 2,601 million. The like-for-like growth rate for the nine months ended 31 December 2013 was 4,1% (9M 2012/13: 3.3%).
- Gross profit in Q3 2013/14 was DKK 464 million, corresponding to a gross margin of 45.6% (Q3 2012/13: 46.3%). The revaluation of the capitalised Club Matas points reduced the Q3 gross margin by approximately 0.6 percentage point. The gross margin for the nine months ended 31 December 2013 was 45.6%, which was unchanged from the year-earlier period.
- EBIT was DKK 191 million in Q3 2013/14. Net of amortisation of trademarks, adjusted EBIT grew by 2.1% to DKK 210 million, corresponding to an adjusted EBIT margin of 20.7% (Q3 2012/13: 21.5%). The revaluation of the Club Matas points reduced the EBIT margin by approximately one percentage point in Q3 2013/14. The adjusted EBIT margin for the nine months ended 31 December 2013 was 17.8% (9M 2012/13: 18.0%).
- Profit after tax for the period was DKK 136 million, and adjusted profit after tax net of amortisation of trademarks was DKK 150 million (Q3 2012/13: DKK 135 million). Profit after tax for the nine months ended 31 December 2013 was DKK 313 million (9M 2012/13: DKK 273 million).
- Cash generated from operations increased to DKK 273 million in Q3 2013/14 (Q3 2012/13: DKK 209 million). The free cash flow was an outflow of DKK 47 million (Q3 2012/13: an inflow of DKK 34 million). The lower free cash flow was caused by an increase in taxes paid to DKK 218 million and the DKK 72 million investment in the acquisition of six associated stores.
- Net interest bearing debt was DKK 1,766 million at 31 December 2013, equivalent to 2.8 times LTM adjusted EBITDA.
- Six associated Matas stores were taken over on 1 November 2013. Moreover, Q3 saw the opening of a new Matas store in Sønderborg, two new StyleBox stores in Kolding and Aarhus, respectively, and a StyleBox webshop.
- Club Matas topped 1.4 members in January 2014, thereby consolidating its status as the biggest customer club in Denmark.
Outlook for 2013/14
Due to better-than-expected like-for-like sales growth in Q3 2013/14, the guidance for revenue growth excluding StyleBox and acquisitions of associated stores is now specified at around 4%, up from the previous guidance of slightly higher than 3.3%.
Against this background, reported revenue is expected to be in the range of DKK 3,350-3,375 million.
The adjusted EBIT margin in the previous guidance, calculated before giving effect to the acquisition of Esthetique, the start-up of Stylebox and the acquisition of associated stores, is now expected to be around 17.1%.
Adjusted EBIT (defined as operating profit plus amortisation of trademarks and non-recurring IPO-related costs) is expected to be in the range of DKK 540-560 million
The outlook for operating costs in connection with the start-up of StyleBox and the continuation of the Esthetique stores acquired is now expected to be in the range of DKK 10-14 million.
Conference call
Matas will host a conference call for investors and analysts on Friday, 21 February 2014 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 3272 8018
UK (international) +44 (0) 1452 555 131
US: +1 866 682 8490
