Interim report – H1 2015/16

Matas A/S
Half Year financial report

Interim report – H1 2015/16

Company announcement no. 15, 2015/16

Allerød, 2015-11-19 07:48 CET (GLOBE NEWSWIRE) -- Stable like-for-like revenue
– guidance unchanged and launch of new share buyback programme 

Q2 2015/16 revenue was DKK 783.2 million, representing a decline of 1.2% year
on year. H1 2015/16 revenue was DKK 1,609.7 million (H1 2014/15: DKK 1,619.8
million). The underlying like-for-like sales growth rate was 0.2% in Q2

EBITA was DKK 123.0 million in Q2 2015/16, equivalent to an EBITA margin of
15.7%, down from 15.8% in the year-earlier period. 

The guidance for consolidated revenue in 2015/16 is unchanged at around DKK
3.45 billion, assuming like-for-like growth of approximately 1%. The EBITA
margin is unchanged expected to be around 17.0%. 

Matas generates substantial cash flows, and against that background, a DKK 125
million share buyback programme will be launched in line with Matas’s capital
structure policy of returning excess cash to its shareholders. 

Statement by Terje List, Chief Executive Officer, in connection with the
release of the interim report: ”A continuing positive trend in the sale of
selective cosmetics and health products was partly offset in Q2 by a downturn
in the sale of mass beauty products. We are pleased that, in spite of moderate
underlying revenue growth, we were able to retain our high level of earnings.
Our target is to create renewed long-term growth through development and
acceleration of our key growth drivers, including Club Matas, the Matas online
store and our store network. In addition, we are pleased that we are generating
cash flows that enable us to launch a substantial new share buyback programme”. 

Highlights of Q2 2015/16

  -- Q2 2015/16 revenue was down by DKK 783.2 million, representing a 1.2%
     year-on-year decline. Like-for-like growth was 0.2%. The product recall of
     Depend GelLack had a non-recurring adverse impact on Q2 2014/15 revenue of
     about 1 percentage point. Combined, Q2 2015/16 revenue was adversely
     affected by 1.3% from the recognition of Club Matas and Club M points and a
     drop in sales to associated stores.
  -- Q2 2015/16 gross profit was DKK 366.9 million, equivalent to a gross margin
     of 46.8% against 47.0% in Q2 2014/15.
  -- EBITA was DKK 123.0 million in Q2 2015/16, equivalent to an EBITA margin of
     15.7%, against 15.8% in the year-earlier period. EBITA for H1 2015/16 was
     DKK 260.7 million, equivalent to an EBITA margin of 16.2%, up from 15.8% in
     H1 2014/15.
  -- Profit after tax in Q2 2015/16 was DKK 71.3 million, and adjusted profit
     after tax net of amortisation not related to software was DKK 85.8 million
     (Q2 2014/15: DKK 80.1 million).
  -- Cash generated from operations increased to an inflow of DKK 44.0 million
     in Q2 2015/16 from an outflow of DKK 1.1 million in the year-earlier
     period. Free cash flow in Q2 2015/16 was an inflow of DKK 18.6 million (Q2
     2014/15: an outflow of DKK 33.9 million).
  -- Net interest-bearing debt was DKK 1,627.2 million at 30 September 2015,
     equivalent to 2.4x LTM EBITDA before exceptional items as compared to 2.5x
     at the end of Q1 2015/16.
  -- Club Matas continued to record net membership growth in Q2 2015/16,
     retaining its position as the largest customer club in Denmark with a
     membership of almost 1.6 million.
  -- Matas’s web shop retained its high growth rate in Q2.

Outlook for 2015/16

The financial targets for the Group for 2015/16 are unchanged:

  -- Revenue is expected to be around DKK 3.45 billion, assuming like-for-like
     growth of approximately 1%.
  -- The EBITA margin is expected to be around 17.0%.

The Danish retail market was challenging in the second quarter of the financial
year due to continuing reluctant consumer spending. The guidance for 2015/16 is
based on a detailed analysis of the company’s planned sales campaign activities
for the remaining part of the financial year. 

Conference call

Matas will host a conference call for investors and analysts on Thursday, 19
November at 10:00 a.m. 

The conference call and presentation will be available on our investor website: 

Conference call access numbers for investors and analysts:

DK                                   +45 32 71 16 58

UK (international)            +44 (0)20 3427 1902

US:                                   +1 646 254 3364

Code:                                 48 65 261


Terje List                                                      Søren Mølbak

CEO, tel +45 4816 5555                              Head of Investor Relations,
tel +45 4816 5548 

Anders T. Skole-Sørensen                           Henrik Engberg Johannsen

CFO, tel +45 4816 5555                               Information Manager, tel
+45 2171 2474