August 22, 2017

Interim report - Q1 2017/18

Company announcement no. 6 2017/18

Company announcement no. 6 2017/18

Alleroed, 2017-08-22 08:00 CEST (GLOBE NEWSWIRE) -- The Board of Directors of Matas A/S today considered and adopted the interim report for the period 1 April — 30 June 2017.

   

Fewer trading days drive revenue lower — guidance maintained

  • Q1 2017/18 revenue was down by 3.2% year on year to DKK 820.9 million. Underlying (like-for-like) revenue was down by 2.9%.
  • The number of trading days was down by three to 72 relative to Q1 2016/17, which is estimated to have eroded revenue by around 2%. Revenue was also affected by poor spring weather driving seasonal sales down relative to Q1 2016/17. Customer traffic and the number of transactions fell in the first quarter of the year, while the average basket size developed positively with a growth rate of 6.6%.      
  • High-End Beauty sales showed a very satisfactory performance, more than offsetting the negative impact of a larger number of competing outlets relative to the same period of last year, which affected Mass Beauty sales in particular. Overall Beauty sales were slightly ahead.
  • Q1 2017/18 gross profit was DKK 379.1 million, taking the gross margin to 46.2%, a 1.1 percentage point decline compared with 47.3% in Q1 2016/17.
  • Total costs declined compared with the year-earlier period, reflecting, among other things, the cost reduction programme completed towards the end of financial year 2016/17.
  • Results of operations for Q1 fell short of our ambitions. Expecting an improved performance in the rest of the financial year, we confirm our full-year sales and profit forecasts.
  • EBITA was DKK 119.0 million in Q1 2017/18, equivalent to an EBITA margin of 14.5%, against 16.1% in the year-earlier period. The fall in EBITA margin was driven down by a lower gross margin.
  • Q1 profit after tax was DKK 74.0 million, and Adjusted profit after tax net of amortisation not related to software was DKK 88.9 million, compared with DKK 84.6 million and DKK 99.4 million, respectively, in Q1 2016/17.
(DKKm)     Q1 2017/18 Q1 2016/17
         
Revenue     820.9 848.1
Gross profit     379.1 401.1
EBIT     99.9 117.9
EBITA     119.0 136.9
EBITA margin     14.5% 16.1%
Profit for the period     74.0 84.6
Adjusted profit after tax     88.9 99.4
Cash flow from operating activities     69.3 77.4
Earnings per share, DKK     1.97 2.17

  

Outlook for 2017/18

Our financial guidance for the Group for 2017/18 is unchanged as follows:

  • Underlying (like-for-like) revenue growth of 1-3% after taking a negative calendar effect into account.
  • Improved EBITA relative to financial year 2016/17.
  • Investments of around DKK 90-100 million (excluding store acquisitions).

 

Conference call

Matas will host a conference call for investors and analysts on Tuesday, 22 August 2017 at 10:00 a.m. The conference call and presentation can be accessed on our investor website: www.investor.en.matas.dk.

Conference call access numbers for investors and analysts:

DK:                     +45 32 71 16 60

UK:                     +44 (0)20 3427 1909

US:                     +1 646 254 3367

Event code:       "MATAS" or 7068776

Please call 5-10 minutes before the conference call begins.

Link to webcast: https://edge.media-server.com/m6/p/ffqdi3iy

 

Contacts

Anders T. Skole-Sørensen                                                              

CFO, tel +45 48 16 55 55                                                              

 

Elisabeth Toftmann Klintholm                                                      

Head of Investor Relations & Strategy, tel +45 48 16 55 48   

 

Henrik Engberg Johannsen

Information Manager, tel +45 21 71 24 74


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