Interim report – 9M 2016/17

Matas A/S
Interim report (Q1 and Q3)

Interim report - 9M 2016/17

Company announcement no. 47 2016/17

Allerød, 2017-02-08 07:59 CET (GLOBE NEWSWIRE) -- Satisfactory revenue
performance – guidance maintained 

Q3 2016/17 revenue was up by 1.2% year on year to DKK 1,064.3 million, bringing
revenue for the 9M 2016/2017 period to DKK 2,684.0 million. The underlying
like-for-like store sales growth rate was 1.3% in Q3 2016/17. The like-for-like
growth rate for 9M 2016/17 was 1.0%. 

EBITA amounted to DKK 214.6 million in Q3 2016/17, equivalent to an EBITA
margin of 20.2%, down from 21.7% in the year-earlier period. EBITA for 9M
2016/17 was DKK 449.0 million, representing an EBITA margin of 16.7%. 

The guidance for full-year 2016/17 is maintained at like-for-like revenue
growth of 0-2% and an EBITA margin of around 16%. 

Terje List, Chief Executive Officer, said: “Our revenue performance in Q3 was
satisfactory, with sales of high-end beauty products performing particularly
well. Competition remains fierce, and in that light we consider our earnings
performance to be satisfactory”. 

  -- Q3 2016/17 revenue grew 1.2% year on year to DKK 1,064.3 million. The
     like-for-like growth rate for Q3 was 1.3%. Revenue for 9M 2016/17 was DKK
     2,684.0 million, reflecting like-for-like growth of 1.0% on the
     year-earlier period.

  -- Q3 2016/17 gross profit was DKK 487.5 million, equivalent to a gross margin
     of 45.8% against 46.4% in Q3 2015/16. Gross profit for 9M 2016/17 was DKK
     1,250.5 million, corresponding to a gross margin of 46.6%, unchanged
     relative to 9M 2015/16.

  -- EBITA was DKK 214.6 million in Q3 2016/17, equivalent to an EBITA margin of
     20.2%, down from 21.7% in Q3 2015/16. EBITA for 9M 2016/17 was DKK 449.0
     million against DKK 488.9 million for the year-earlier period. Overall, the
     EBITA margin for 9M 2016/17 was 16.7%, down 1.7 percentage points relative
     to 9M 2015/16.

  -- Profit after tax for Q3 2016/17 came to DKK 147.0 million, and Adjusted
     profit after tax net of amortisation not related to software was DKK 161.8
     million, compared with DKK 167.4 million for Q3 2015/16. Adjusted profit
     after tax for 9M 2016/17 was DKK 330.6 million, down from DKK 354.1 million
     in the year-earlier period.

  -- Cash generated from operations grew to DKK 400.6 million in Q3 2016/17 from
     DKK 369.8 million in the year-earlier period. The Q3 2016/17 free cash flow
     was an inflow of DKK 299.4 million, up from DKK 237.9 million in Q3
     2015/16. Cash generated from operations for 9M 2016/17 was DKK 500.1
     million, compared to DKKK 613.1 million in the year-earlier period. Free
     cash flow for 9M 2016/17 was DKK 303.3 million, down from DKK 434.0 million
     in the same period the year before.

  -- Standing at DKK 1,688.6 million at 31 December 2016, gross debt is within
     the DKK 1,600-1,800 million target range. Net interest-bearing debt was DKK
     1,522.3 million at 31 December 2016, equivalent to 2.5x LTM EBITDA before
     exceptional items as compared with 2.1x at 31 December 2015.

  -- Club Matas continued its net membership growth in Q3 2016/17 to a current
     membership of about 1.7 million. More than 400,000 people have downloaded
     the new Club Matas app.

  -- Matas’s webshop continued reporting strong growth in Q3 2016/17.

  -- StyleBox reported strong growth in Q3 2016/17 following the successful
     implementation of M·A·C shops-in-shops.

 Outlook for 2016/17

The financial guidance for the Group for 2016/17 remains unchanged:

  -- Like-for-like revenue is expected to grow by 0-2%.
  -- The EBITA margin is expected to be around 16%.
  -- Investments excluding store acquisitions are expected to be in the DKK
     90-100 million range.

 Conference call

Matas will host a conference call for investors and analysts on 8 February 2017
at 11:00 a.m. (CET). 

The conference call and presentation can be accessed on our investor website: 

Conference call access numbers for investors and analysts:

Denmark:                          +45 38 48 75 13

US:                                    +1 212 444 0895

UK:                                    +44 (0)20 3427 1905

Event code:                        2277110 or “Matas”


Terje List                                                          Søren Mølbak

CEO, tel +45 48 16 55 55                               Head of Investor
Relations, tel +45 48 16 55 48 

Anders T. Skole-Sørensen                              Henrik Engberg Johannsen

CFO, tel +45 48 16 55 55                                Information Manager,
tel +45 21 71 24 74 

 Forward-looking statements

This interim report contains statements relating to the future, including
statements regarding Matas A/S’s future operating results, financial position,
cash flows, business strategy and plans for the future. Such statements can be
identified by the use of words such as “believes”, “expects”, “estimates”,
“projects”, “plans”, “anticipates”, “continues” and “intends” or any variations
of such words or other words with similar meaning. The statements are based on
management’s reasonable expectations and forecasts at the time of the release
of the report. Any such statements are subject to risks and uncertainties, and
a number of different factors, many of which are beyond Matas A/S’s control,
could mean that actual performance and actual results will differ significantly
from the expectations expressed in this interim report. Without being
exhaustive, such factors include general economic and commercial factors,
including market and competitive matters, supplier issues and financial issues.