Company announcement no. 05 2021/22 – INSIDE INFORMATION
Allerød,
Interim report – Q1 2021/22
(1 April –
Matas grows across the board, upgrades guidance and launches new five-year growth strategy
- Matas grew revenue by 7.9% on the back of improvements in all product categories and sales channels
- EBITDA before special items up by 7.5%
- More than
DKK 500 million investment in new logistics centre initiated - Guidance upgraded
- New five-year growth strategy launched
“Matas had an excellent spring quarter. Danish consumers released their pent-up desire to shop, substituting hand sanitiser and face masks for makeup and sunscreen, in-store revenue bounced back, and online sales remained strong. Against this background, we’re upgrading our full-year guidance, and when we present our new growth strategy later today, we will do so from the strongest imaginable position”, says
“Over the past three or four years, Matas has evolved into a digital business with online revenue in excess of
“Over the next five years, we will invest more than
Matas’ Board of Directors has today approved the plan to build a big new central logistics centre in Allerød.
As part of its new strategy, Matas intends to accelerate the development and acquisitions of house brands with a view to enhancing differentiation and profitability. At the same time, Matas will begin to export its house brands in order to accommodate growing global demand for brands with a Nordic, sustainable and clean profile.
Q1 2021/22 highlights
- Revenue grew by 7.9% to
DKK 1,021 million . Like-for-like sales were up by 5.9%. - The stores grew revenue by 6% on the back of 4% growth in the average basket size and 2% growth in the number of transactions.
- Online sales via matas.dk and Firtal were up by 7%, meaning that Matas’ webshops continued to build on the significant momentum from Q1 2020/21, during which revenue surged by 152%.
- Boosting revenue by more than 11% on the back of increased sales across all product groups, High-End Beauty was the sales category to record the strongest growth. Makeup sales were supported by many consumers returning to their workplaces and social activities starting up again. At the same time, Matas continues to benefit from reduced travel activity since the onset of the Covid-19 pandemic in spring 2020.
- EBITDA before special items came to
DKK 186 million , up fromDKK 173 million in the year-earlier period. The 7.5% increase was attributable to higher revenue as the EBITDA margin before special items was largely unchanged at 18.2% compared with 18.3% in Q1 2020/21. - Cash generated from operations was an inflow of
DKK 88 million in Q1 2021/22 against an inflow ofDKK 301 million in Q1 2020/21. TheDKK 213 million decline should be seen in light of exceptionally favourable working capital developments in Q1 2020/21 as a result of the deferred payment of payroll tax and VAT as part of Covid-19-related relief packages. - The activities acquired by
Web Sundhed ApS were successfully integrated in the first quarter and contributedDKK 17 million to Q1 revenue.
2021/22 | 2020/21 | Percentage | |
(DKKm) | Q1 | Q1 | change |
Revenue | 1,021 | 947 | 7.9% |
Gross profit | 453 | 420 | 7.8% |
EBITDA before special items | 186 | 173 | 7.5% |
EBIT | 78 | 72 | 8.2% |
Adjusted profit after tax | 77 | 67 | 14.5% |
Free cash flow | (5) | 237 | (102)% |
Underlying like-for-like revenue growth | 5.9% | 8.4% | |
Gross margin | 44.4% | 44.4% | |
EBITDA margin before special items | 18.2% | 18.3% | |
Net interest-bearing debt/EBITDA before special items | 2.1 | 3.2 |
Matas upgrades financial guidance for 2021/22
- Revenue is now expected in the range of
DKK 4,160-4,290 million , equivalent to a growth rate of between 0% and +3%, against the previous estimate ofDKK 4,080-4,250 million , equivalent to a growth rate of between -2% and +2%. - The EBITDA margin before special items is now expected in the range of 17.5%-18.5% up from the previous 17.0%-18.5% range.
- Factoring in the maximum expected MLC investment in the financial year of
DKK 125 million and theDKK 29 million acquisition of Web Sundhed already completed, the CAPEX estimate is raised byDKK 155 million toDKK 295-315 million .
The driving factors behind the upgrade are the strong revenue growth witnessed in the first quarter and reduced Covid-19-related uncertainty.
Revenue guidance for the rest of 2021/22 is based on the following basic assumptions:
- Continued, but moderate, growth in consumer spending
- No significant restrictions or retail sector lockdowns during the financial year
- A gradual normalisation of trading patterns and travel activity in the second half of calendar year 2021
- No sales of personal protective equipment but continued strong demand for health products
- Continuing shift in sales channels from physical to online shopping but at a more moderate pace than in 2020/21
- Increasing competition, especially online
Earnings guidance is based on the following assumptions:
- A stable earnings level in physical stores and at matas.dk
- Accelerated digital business development activity across
Matas Group , which is expected to squeeze the EBITDA margin by up to 1% in the short term but will secure the Company’s long-term growth
Video conference
Matas will host a video conference for investors and analysts on
Video conference access numbers for investors and analysts:
PIN: 53061265#
Link to webcast: https://streams.eventcdn.net/matas/2021q1/
Capital markets day
Matas will host a capital markets day on
The capital markets day is a digital event that may be accessed through the above telephone numbers or via this webcast link: https://streams.eventcdn.net/matas/capital-markets-day-august-2021/
The capital markets day and related presentations can be accessed from Matas’ investor website: https://investor.en.matas.dk.
Contacts
Gregers Wedell-Wedellsborg
CEO, tel +45 48 16 55 55
CFO, tel +45 48 16 55 55
Henrik Lund
Head of Investor Relations, tel +45 30 30 99 08
Klaus Fridorf
Head of Communication, tel +45 61 20 19 97
Forward-looking statements
This interim report contains statements relating to the future, including statements regarding
Attachment
- Matas_Q1_2021_UK
© OMX, source