Allerød, 2013-08-28 07:57 CEST (GLOBE NEWSWIRE) -- Q1 2013/14 revenue grew 3.7% to DKK 803.0 million, reflecting 2.5% growth on a like-for-like basis. EBIT was DKK 88.6 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 16.9% from 16.7% last year.
"The successful flotation of the company's shares on NASDAQ OMX Copenhagen in Q1 2013/14 was an important milestone in Matas history. We are proud of the great interest shown in our company, and we thank our employees for their great commitment which has taken us to where we are today," said Matas CEO Terje List.
- Revenue in Q1 2013/14 rose 3.7% to DKK 803.0 million year on year. The like-for-like growth rate in stores trading in Q1 of both this year and last year was 2.5%.
- Gross profit was DKK 374.1 million, corresponding to a gross margin of 46.6% (Q1 2012/13: 45.4%). The improvement in the gross margin is among other things related to higher profitability in the new distribution structure within high-end beauty.
- EBIT was DKK 88.6 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 4.7% to DKK 135.8 million, corresponding to an adjusted EBIT margin of 16.9% (Q1 2012/13: 16.7%).
- Profit after tax for the period was DKK 42.6 million. Net of IPO-related costs and amortisation of trademarks, adjusted profit after tax was DKK 81.7 million (Q1 2012/13: DKK 78.1 million).
- The free cash flow was DKK 3.2 million (Q1 2012/13: DKK 89.7 million), which was primarily attributable to temporary larger inventories of DKK 50-60 million as a result of the new central warehouse for High-end Beauty products and inventories taken over in connection with acquisitions and investments to acquire stores.
- Net interest bearing debt was DKK 1,776 million at 30 June 2013, equivalent to 2.9x LTM Adjusted EBITDA. The Group's debt was refinanced in connection with the IPO through the establishment of a five-year loan agreement.
- All the shares of Esthetique Danmark A/S and its nine leased stores were acquired in connection with the launch of the new StyleBox retail concept. Two of the new StyleBox stores opened in mid-June 2013. Matas in Ringkøbing, Denmark, was also taken over in Q1 2013/14.
- In Q1, a heads of agreement was entered into with the associated stores concerning certain changes to and a concurrent extension of the existing terms of trading and the acquisition of up to six identified associated stores.
- An employee share offering of 43,475 shares will be made in September 2013 at 80% of the average share price quoted on NASDAQ OMX Copenhagen during the period from 28 August 2013 to 10 September 2013 inclusive.
- The company's shares were admitted to trading on NASDAQ OMX Copenhagen on 28 June 2013.
Outlook for 2013/14
The outlook for revenue growth and adjusted EBIT margin for 2013/14 is unchanged from the guidance stated in the offering circular dated 13 June 2013. Revenue growth, excluding StyleBox and any 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.
Moreover, 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%.
Operating costs in connection with the start-up of StyleBox are now expected to be in the range of DKK 7-10 million instead of the previous guidance of DKK 3-7 million. This is primarily attributable to slightly higher ongoing operating losses in the Esthetique stores taken over.
Conference call
Matas will host a conference call for investors and analysts on Wednesday, 28 August 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 3272 8018
UK (intenational) +44 (0) 1452 555131
US: +1 866 682 8490
