Beter Bed realises sharply higher profit in first half of 2015
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Revenue increases by 10.3% to EUR 186.1 million.
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Like-for-like order intake + 9.1%.
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Underlying gross profit increases by 0.1% to 56.7%.
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Operating profit increases by 65.9% to EUR 10.5 million (H1 2014: EUR 6.4 million).
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Net profit increases by 59.8% to EUR 7.8 million (H1 2014: EUR 4.9 million).
Key figures interim results
|
(in millions of EUR unless otherwise stated) |
2015 H1 |
2014 H1 |
Change |
|
Revenue |
186.1 |
168.7 |
10.3% |
|
Gross profit (%) |
56.6 |
57.2 |
|
|
EBIT |
10.5 |
6.4 |
65.9% |
|
|
|
|
|
|
Net profit |
7.8 |
4.9 |
59.8% |
|
|
|
|
|
|
Earnings per share (in EUR) |
0.36 |
0.22 |
58.8% |
|
|
|
|
|
|
Operating cash flow |
15.2 |
10.5 |
44.8% |
|
|
|
|
|
|
|
30-6-2015 |
30-6-2014 |
|
|
Solvency (%) |
58.6 |
60.2 |
|
Ton Anbeek, Chief Executive Officer:
'We see a positive development of revenue in all the countries in which the group operates. The generally increasing consumer confidence, the higher propensity to buy and the recovering housing market in the Netherlands are contributing to this development. Furthermore, investments in the Beter Bed format and Matratzen Concord's new visual identity and advertising campaign are resulting in additional growth in revenue, which in turn means the group is gaining market share.'
Key figures second quarter results
|
(in millions of EUR unless otherwise stated) |
2015 Q2 |
2014 Q2 |
Change |
|
Revenue |
83.9 |
76.0 |
10.4% |
|
Gross profit (%) |
56.7 |
57.7 |
|
|
EBIT |
1.3 |
0.0 |
|
|
|
|
|
|
|
Net profit |
1.0 |
0.4 |
146.9% |
|
|
|
|
|
Second quarter of 2015
Revenue at comparable stores increased in the second quarter of 2015 in all the countries in which the group is active. Revenue at comparable stores in Germany and the Netherlands rose by 9.4% and 5.7% respectively (increase for the whole group amounted to 7.7%). Total revenue rose by 10.4% to EUR 83.9 million in the second quarter. The change to the exchange rate of the Swiss franc at the beginning of this year was attributable for EUR 0.8 million of the increase in revenue.
Gross profit was 56.7% lower in the second quarter of 2015 than in the comparable period of last year. This is attributable to the fact that the costs of free deliveries at Matratzen Concord have not been recognised as expenses, but are instead accounted for in the gross profit since the fourth quarter of 2014. Excluding these expenses, gross profit amounted to 57.4% in the second quarter (Q2 2014: 57.7%).
Expenses rose by 5.6% to EUR 46.3 million in the second quarter. This increase was caused by higher depreciations due to the investment program launched in early 2014, higher advertising expenses owing to the Matratzen Concord format's new campaign and increased staff costs due to the payment of higher bonuses to sales staff as a result of the growth in revenue.
The aforementioned change to the Swiss franc exchange rate led to a EUR 0.5 million increase in expenses during this period. In addition, there was a non-recurring decrease in expenses of EUR 0.9 million in the second quarter of 2014 as a result of the release of reserves in connection with lower liabilities ensuing from employee stock options and rental obligations. Excluding these items, expenses rose by 2.3% in the second quarter of 2015.
Average expenses per store (excluding DBC) increased by 8.1% in the second quarter. Average expenses per store rose more sharply than the total expenses due to a 2.7% decrease in the average number of stores. Excluding the exchange rate effect and non-recurring income in 2014, average expenses per store rose by 4.6%.
Operating profit (EBIT) rose in the second quarter from EUR 0.0 million to EUR 1.3 million. Net profit in the second quarter of 2015 amounted to EUR 1.0 million positive (second quarter 2014: EUR 0.4 million positive).
Revenue and net profit are generally lower in the second and third quarter of the year than in the first and fourth quarter due to the seasonal pattern in consumer demand.
First half of 2015
Revenue increased in the first half of 2015 by 10.3% to EUR 186.1 million. Revenue in comparable stores rose by 9.1% in the first half of 2015.
The movements in revenue for the first half of 2015 by country were as follows:
|
Netherlands |
6.1% |
|
Germany |
10.2% |
|
Austria |
22.6% |
|
Switzerland |
23.5% |
|
Spain |
15.7% |
|
Belgium |
28.6% |
The higher revenue was caused primarily by a rising demand due to the improving economy, the recovering housing market in the Netherlands and formula and range improvements. The group is consequently gaining market share in virtually all markets. Exchange rate differences had a positive effect of EUR 1.6 million on revenue.
Gross profit as a percentage of revenue was 56.6% in the first half of 2015, which is lower than in the same period of last year (H1 2014: 57.2%). This decrease was also largely caused by recognising the expenses of free delivery at Matratzen Concord under gross profit. Excluding these expenses, the underlying gross profit amounted to 57.3% in the first half of 2015.
The average number of stores decreased by 3.3% in the first half of 2015 compared to the same period of last year. Total expenses increased from EUR 90.2 million to EUR 94.8 million in the first half of 2015, representing a 5.0% increase. This rise was caused by the aforementioned depreciation, marketing and staff costs. Exchange rate differences caused expenses to rise by EUR 1.0 million. Operating expenses as a percentage of revenue for the first half year decreased from 53.5% in 2014 to 50.9% in 2015.
Excluding non-recurring income in 2014 and the effects of exchange rate differences in 2015, the increase in expenses for the first half of 2015 amounted to 3.0%.
Average expenses per store (excluding DBC) rose by 8.3% in the first half of 2015 due to both the relatively sharp decrease in the number of stores and the increase in expenses. Excluding the exchange rate effect and the non-recurring income in 2014, average expenses per store rose by 6.0%.
Operating profit (EBIT) rose in this period by 65.9% to EUR 10.5 million. Operating profit (EBIT) as a percentage of revenue increased from 3.8% to 5.7%.
Net profit for the first half year rose by 59.8% from EUR 4.9 million to EUR 7.8 million. Earnings per share for the first half of 2015 amounted to EUR 0.36 (first half of 2014: EUR 0.22).
Investments and cash flow
Investments amounted to EUR 8.7 million in the first half of 2015 (first half of 2014: EUR 4.5 million). Investments in stores totalled EUR 4.8 million in the first half of 2015 (first half 2014: EUR 3.7 million). Other investments related to the purchase of a DC, and IT. The operating cash flow increased by 44.8% from EUR 10.5 million in 2014 to EUR 15.2 million in 2015.
Financing
Solvency was 58.6% as at 30 June 2015, compared with 60.2% on 30 June 2014 and 58.6% at year-end 2014. The group has also this year extended its account overdraft facilities totalling EUR 40 million (of which EUR 20 million committed) for a period of five years based on the existing covenants.
Operational
In the first half of 2015, 32 stores were opened and 38 stores were closed. At the end of June 2015, the group had a total of 1,121 stores.
|
Number of stores |
31-12-2014 |
Closed |
Opened |
30-6-2015 |
|
Matratzen Concord |
966 |
27 |
20 |
959 |
|
Beter Bed |
94 |
6 |
5 |
93 |
|
El Gigante del Colchón |
32 |
1 |
4 |
35 |
|
Beddenreus |
35 |
4 |
3 |
34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
1,127 |
38 |
32 |
1,121 |
|
|
|
|
|
|
Matratzen Concord
|
Number of stores |
31-12-2014 |
Closed |
Opened |
30-6-2015 |
|
Germany |
846 |
26 |
19 |
839 |
|
Austria |
67 |
- |
1 |
68 |
|
Switzerland |
53 |
1 |
- |
52 |
|
|
|
|
|
|
|
Total |
966 |
27 |
20 |
959 |
|
|
|
|
|
|
Matratzen Concord
The revenue of the cash & carry formula Matratzen Concord for the first half of 2015 totalled EUR 124.9 million (67.1% of total group revenue). This is an increase of 10.8% compared with the same period in 2014. Within the revenue of this formula, 84.7% is realised in Germany and 15.3% in Austria and Switzerland. Revenue increased by 9.9% in the comparable stores.
Beter Bed
This formula is active in the Netherlands and Belgium. Revenue rose by EUR 6.4 million to EUR 50.4 million in the first half of 2015, representing an increase of 14.5%. Revenue in comparable stores increased by 8.1% in the first half of 2015. Beter Bed contributes 27.1% of total group revenue.
Other formulas
Revenue of the other formulas for the first half of 2015 decreased with 10.2% to EUR 10.8 million, mainly as a result of the closure of the Slaapgenoten formula. The other formulas contributed for 5.8% to the total group revenue. This includes the revenue of the retail formulas Beddenreus (the Netherlands), El Gigante del Colchón (Spain) and the wholesaler DBC.
Outlook for the third quarter of 2015
In all countries the underlying trend is positive and the economic recovery in the Netherlands seems to continue. At the same time the basis for comparison will be challenging. In addition, the warm summer weather in primarily the Matratzen Concord countries, but also in the Benelux, influenced the number of visitors.
Interim dividend
The company intends to distribute an interim dividend in 2015. As is customary, further information regarding this matter will be provided upon the publication of the trading update on 30 October 2015.
Profile
Beter Bed Holding N.V. operates in the European bedroom furnishings market. Its activities include retail trade through a total of 1,121 stores at the end of June 2015 that operate via the chains Beter Bed (active in the Netherlands and Belgium), Matratzen Concord (active in Germany, Switzerland and Austria), El Gigante del Colchón (active in Spain) and Beddenreus (active in the Netherlands). Beter Bed Holding is also active in the field of developing and wholesaling branded products in the bedroom furnishing sector in the Netherlands, Germany, Belgium, Spain, Austria and Switzerland via its subsidiary DBC International. Beter Bed Holding N.V. achieved net revenue of EUR 364.0 million in 2014. Approximately 70% of the group's net revenue is realised outside the Netherlands. The company has been listed on the NYSE Euronext Amsterdam since 1996 and is included in the Amsterdam Small Cap Index.
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 |
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