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Beter Bed Holding realised higher revenue and profit in first six months of 2017

ID: 1519192
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(Thomson Reuters ONE) -


* Revenue rose by 6.7% to ? 209.8 million.
* Gross profit increased to 57.5%.
* EBITDA increased to ? 17.5 million.
* Operating profit amounted to ? 11.5 million.
* Net profit ? 7.5 million.


Key figures interim results

(in millions of ? unless stated otherwise)

  2017 H1 2016 H1 Change
---------------------------------------------------------
Revenue 209.8 196.7 6.7%

Gross profit (%) 57.5 57.0

EBITDA 17.1 17.1 2.8%

Operating profit 11.5 11.6 -1.3%



Net profit 7.5 8.4 -11.1%



Earnings per share (in ?) 0.34 0.38 -10.5%
---------------------------------------------------------





Ton Anbeek, Chief Executive Officer:
"Overall, we are satisfied with the revenue growth and results for the first six
months of 2017, partly in view of the growth we are seeing in the group''s two
most important markets. Beter Bed is benefiting from the high level of consumer
confidence and the strong propensity to buy which remain unabatedly high in the
Netherlands. Our continual focus on customer satisfaction is reflected in
revenue growth that is outpacing the average market trend. In addition, a trend
towards improving revenue growth is visible in Germany in the first six months
of 2017, driven mainly by swifter execution of the strategic plans. The
reintroduction of the Sängjätten brand in Sweden, followed by a comprehensive
range change in that country, has also had a very positive impact on like-for-
like revenue growth."

First six months of 2017
Revenue rose by 6.7% to ? 209.8 million in the first six months of 2017.
Excluding the acquisition of Sängjätten, revenue grew by 4.1%. The like for like


development is 1.5% in the first six months of 2017.

Revenue performance per country in the first six months of 2017 was as follows:

Netherlands 9.3%

Germany 0.4%

Austria -5.8%

Switzerland 6.5%

Spain 17.3%

Belgium 34.2%

France 23.3%

Sweden (order intake development) 19.2%




With the exception of Austria, all countries in which the group operates
reported revenue growth in the first six months of 2017. A slight increase in
revenue is visible in Germany, which appears to indicate a reversal of the
downward revenue spiral, despite unfavourable weather conditions in the second
quarter in particular. Further recovery is possible due to the introduction of a
broad boxspring and textiles range and the expansion of the omnichannel
strategy. Revenue in the Netherlands benefited from the continuing positive
economic conditions. The decrease in Austria was due to the strong comparative
basis last year. A sale of the inventories of the former BettenMax format took
place early in 2016, which boosted revenue at the time.

Gross profit for the first six months of the year was 57.5%, up 0.5% from the
same period a year ago (H1 2016: 57.0%). This increase was achieved due to a
continual focus on improvement in conditions, the product range, product
innovation and where possible the introduction of price increases. In addition,
the current purchasing volumes, which are related to a simplification of the
product range, lead to higher volume discounts.

Total expenses rose from ? 100.5 million to ? 109.1 million in the first six
months of the year. This 8.6% increase was mainly attributable to the expansion
of the group (3.5% more stores), increased logistics expenses associated with
the increased revenue (which entails higher logistics expenses in the
Netherlands in particular) and increased overhead costs, related to the further
expansion of the IT and e-commerce activities in line with the strategy.
Adjusted for the (partly non-recurring) costs relating to Sängjätten, expenses
rose by 5.3%. Average expenses per store excluding Sängjätten increased by 2.7%
in the first six months of 2017.

The group already pursued a strict cost control and investment policy in the
second quarter of 2017. Its most significant effects will only become manifest
in the second half of the year. The average number of stores rose by 3.5% in the
first six months of 2017 compared to the same period in 2016.

EBITDA for the first six months of the year was ? 17.5 million. This is an
increase of ? 0.4 million (2.8%) compared to the same period of last year.
Excluding Sängjätten, EBITDA rose by 5.3% compared to the same period of last
year.

Operating profit (EBIT) fell by 1.3% to ? 11.5 million in the first six months
of 2017. Excluding Sängjätten, EBIT rose by 5.2%. As a percentage of revenue,
operating profit decreased from 5.9% to 5.5%.

Net profit decreased by 11.1% from ? 8.4 million to ? 7.5 million in the first
six months of 2017. The decrease is for the largest part attributable to changes
in German laws concerning corporate income tax and tax losses carryforwards that
have not been capitalised (for the time being).

Earnings per share in the first six months of 2017 amounted to ? 0.34 (first six
months of 2016: ? 0.38).

Investments and cash flow
Investments in intangible and tangible fixed assets in the first six months of
2017 totalled ? 9.9 million (H1 2016: ? 6.8 million). Investments in stores in
this period amounted to ? 6.8 million (H1 2016: ? 4.5 million). A significant
part of this amount related to the remodelling of the Matratzen Concord stores
in the German-speaking countries, and the remaining amount was invested mainly
in IT.


Financing/solvency
Solvency amounted to 56.3% on 30 June 2017. This was 53.5% at year-end 2016.

Operational
24 stores were opened and 36 stores were closed in the first six months of
2017. The group had a total of 1,194 own stores at the end of June 2017.

Number of stores

  31-12-2016 Closed Opened 30-6-2017

Matratzen Concord 1,004 26 16 994

Beter Bed 100 4 1 97

El Gigante del Colchón 48 2 2 48

Beddenreus 33 4 4 33

Sängjätten   16 - - 16

Literie Concorde 5 - 1 6
-------------------------------------------
Total 1,206 36 24 1,194





Matratzen Concord

Number of stores 31-12-2016 Closed Opened 30-6-2017

Germany 861 22 11 850

Austria 84 - - 84

Switzerland 59 4 5 60
-------------------------------------------
Total 1,004 26 16 994




Matratzen Concord
Revenue of the cash & carry format Matratzen Concord in the first six months of
2017 totalled ? 123.9 million (59.1% of total group revenue). This is an
increase of 0.3% compared to the first six months of 2016. Of the revenue of
this format, 83.2% was achieved in Germany and 16.8% in Austria and Switzerland.
Revenue at comparable stores (open for at least one year) decreased by 1.6%.

Beter Bed
This format operates in the Netherlands and Belgium. Revenue grew in the first
six months of 2017 by ? 5.4 million to ? 66.5 million, which equals an increase
of 8.8%. The order intake in comparable stores increased by 5.9% in the first
six months of 2017. Beter Bed contributed 31.7% to the total group revenue.

Other formats
Revenue of the other formats rose by 61.7% in the first six months of 2017 to ?
19.4 million. The other formats contributed 9.2% to the total group revenue.
This includes the revenues of the retail formats Beddenreus (The Netherlands),
Sängjätten (Sweden), El Gigante del Colchón (Spain), Literie Concorde (France)
and the wholesaler DBC.


Outlook for the second half of 2017
The outlook for the second half of 2017 is positive. The simplification of the
product range together with a greater emphasis on boxsprings at Matratzen
Concord form the basis for further improvement in revenue growth. The
investments in e-commerce and the cooperation with Emma will enable the company
to serve consumers in the Netherlands and Germany even better, both online and
offline. In addition, the high level of consumer confidence and the strong
propensity to buy in the Benelux appear to be unabatedly high going forward.
Lastly, the initial effects of the cost saving programme have already been
realised in the first six months of 2017. On the basis of the current progress
and the measures we have taken, the savings target for the full year 2017 issued
previously is expected to be achieved. Apart from unforeseen circumstances, the
group is expected to realise a further improvement of the EBITDA.

Interim dividend
The company plans to pay an interim dividend in 2017. As is customary, further
information regarding this matter will be provided upon the publication of the
trading update on 3 November 2017.

FOR MORE INFORMATION:
Ton Anbeek                                        Bart Koops
Chief Executive Officer                                        Chief Financial
Officer
+31 (0)413 338819                                        +31 (0)413 338819
+31 (0)6 53662838                                        +31 (0)6 46761405
ton.anbeek(at)beterbed.nl
bart.koops(at)beterbed.nl

Please click on the link below for the full version of the press release.

press release 30-8-2017:
http://hugin.info/132850/R/2129998/813732.pdf



This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Beter Bed Holding NV via GlobeNewswire






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Date: 08/30/2017 - 08:00
Language: English
News-ID 1519192
Character count: 3599
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Firma: Beter Bed Holding NV
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