Company announcement no. 4 2018/19
Allerød, 22 August 2018
Interim report – Q1 2018/19
(1 April – 30 June 2018)
Digital build-up drives growth in sales and footfall in Q1
“The 2018/19 financial year has started off on a strong note with increased footfall and growing sales. In total, 120,000 more transactions were completed compared to Q1 last year, and growth was driven primarily by the digital initiatives launched in respect of matas.dk at the beginning of the calendar year. In addition, the sunny summer triggered a strong increase in sunscreen sales. The quarter also benefitted from a positive calendar effect. Revenue for the first quarter of the financial year was DKK 843.8 million, a year-on-year increase of 1.6%. Underlying like-for-like revenue growth was 1.1%”, says Gregers Wedell-Wedellsborg, CEO of Matas A/S, and adds:
“Due to one-off severance costs in connection with a management reshuffle, the Q1 profit after tax was slightly down on Q1 2017/18, while the EBITDA margin adjusted for exceptional items was in line with the first quarter of 2017/18.
At the beginning of the year, we launched the Matas 4D digital growth plan, setting out, among other things, to make shopping on matas.dk faster and easier. As part of this plan, we have introduced nationwide next day delivery, while in Greater Copenhagen we offer same day delivery for orders placed by 3 p.m. Our customers have really responded well to this initiative, and online sales grew by 50% in the past quarter.
Customers have also embraced our measures to add competitive power, including ‘Fair prices’ on a selection of everyday products. Mass Beauty sales grew by 0.4% in the past quarter, supported by the relaunch of the Sun Stripes range and the introduction of a green sunblock series within the Matas Natur range.”
Q1 2018/19 highlights
Outlook
We reiterate our guidance for financial year 2018/19:
Our financial guidance for 2018/19 is based on assumptions of slightly growing consumer spending, a continuing decline in physical store footfall and persistently intensive competition in the health, beauty and personal care market.
Our guidance includes costs for implementing Matas’s growth strategy.
The 2018/19 financial year contains an extra trading day compared to FY 2017/18, which is expected to have a slightly positive effect on revenue.
Conference call
Matas will host a conference call for investors and analysts on Wednesday, 22 August 2018 at 10:00 a.m.
The conference call and presentation can be accessed on our investor website: www.investor.en.matas.dk.
Conference call access numbers for investors and analysts:
DK +45 35 15 81 21
UK: +44 (0)330 336 9411
US: +1 929-477-0402
Event code: 3298039
Link to webcast: https://edge.media-server.com/m6/p/w5q3r742
Contacts
Gregers Wedell-Wedellsborg Anders T. Skole-Sørensen
CEO, tel +45 48 16 55 55 CFO, tel +45 48 16 55 55
Elisabeth Toftmann Klintholm
Head of Investor Relations & Corp. Affairs, tel +45 48 16 55 48
Forward-looking statements
This interim report contains statements relating to the future, including statements regarding the Matas Group's future operating results, financial position, cash flows, business strategy and future targets. Such statements are based on management’s reasonable expectations and forecasts at the time of release of the interim report. Forward-looking statements are subject to risks and uncertainties and a number of other factors, many of which are beyond the Matas Group's control. This may have the effect that actual results may differ significantly from the expectations expressed in the interim report. Without being exhaustive, such factors include general economic and commercial factors, including market and competitive conditions, supplier issues and financial and regulatory issues.
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