Allerød, 2015-08-28 08:08 CEST (GLOBE NEWSWIRE) --
Stable revenue – improved margins – unchanged strong market position
Q1 2015/16 revenue was DKK 826.5 million, down by 0.1% year on year. Revenue was adversely affected primarily by low summer season sales, including, in particular, sales of sun products and, to a lesser extent, by movements in outstanding Club Matas points. The underlying like-for-like sales growth rate in the stores was 0.4% in Q1 2015/16. EBITA was DKK 137.7 million in Q1 2015/16 equivalent to an EBITA margin of 16.7%, up from 15.8% in the year-earlier period.
Statement by Terje List, Chief Executive Officer: “The Danish retail market continues to be characterised by weak growth, which together with lower sales of summer season products and the resulting lower traffic in the stores resulted in revenue being at a lower-than-expected level. Nevertheless, we generated a satisfactory profit in Q1 2015/16 and maintained our overall market share, mostly thanks to our strong market position, good execution of our strategy and tight cost management”.
- Q1 2015/16 revenue was down by 0.1 % year on year to DKK 826.5 million. Like-for-like growth was 0.4%. Revenue was adversely affected by seasonal sales and movements in outstanding Club Matas points.
- Q1 2015/16 gross profit was DKK 386.0 million, equivalent to a gross margin of 46.7%, which was unchanged from Q1 2014/15.
- EBITA was DKK 137.7 million in Q1 2015/16 equivalent to an EBITA margin of 16.7%, up from 15.8% in the year-earlier period.
- Profit after tax for the period was DKK 86.4 million, and adjusted profit after tax net of amortisation not related to software was DKK 100.9 million (Q1 2014/15: DKK 81.9 million).
- Cash generated from operations increased to DKK 199.5 million in Q1 2015/16 (Q1 2014/15: DKK 183.9 million). Free cash flow was an inflow of DKK 177.5 million (Q1 2014/15: an inflow of DKK 156.1 million).
- Net interest bearing debt was DKK 1,645.1 million at 30 June 2015, equivalent to 2.5x LTM EBITDA before exceptional items as compared to 2.4x at the end of Q1 2014/15.
- At the annual general meeting held on 24 June 2015, a resolution was passed to pay a dividend of 5.80 per share of DKK 2.50, equivalent to a total dividend of DKK 232 million, which amount is recognised in the cash flow statement for Q1 2015/16.
- Club Matas sustained the net membership growth in Q1 2015/16, retaining its position as the largest customer club in Denmark.
- Matas’s online store continued its high growth rate.
- Stylebox revenue continued to grow in Q1, and management remains confident about the potential to further develop the Stylebox concept.
Outlook for 2015/16
The financial targets for the Group for 2015/16 are unchanged:
- Revenue is expected to be around DKK 3.5 billion, assuming like-for-like growth of approximately 2%.
- The EBITA margin is expected to be at a level of between 17.0 and 17.5%.
The Danish retail market was challenging during the first quarter of the current financial year, partly due to continuing reluctant consumer spending, and partly due to an extraordinarily poor season for sales of summer-related products, which are typically a major sales category during Matas’s first quarter. The guidance for 2015/16 is based on an assumption of unchanged market conditions for the rest of the financial year, although sales of seasonal products are expected to normalise. Moreover, it is expected that the Group will be in a position to retain its overall market share.
