Nordic strategy drives high revenue and earnings growth - revenue guidance narrowed upwards
Interim report H1 2024/25
15 November 2024
Disclaimer
Forward-looking statements
This interim report contains statements relating to the future, including statements regarding 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 this report. Forward- looking statements are subject to risks and uncertainties and a number of other factors, many of which are beyond Matas Group's control. This may have the effect that actual results may differ significantly from the
expectations expressed in the report. Without being exhaustive, such factors include general economic and commercial factors, including market and competitive conditions, supplier issues and financial and regulatory issues, IT failures as well as any effects of healthcare measures that are not specifically mentioned above.
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Agenda
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Group CEO comments and strategy update Financial results for Q2 2024/25
Q&A
Gregers Wedell-Wedellsborg
Per Johannesen Madsen
Gregers Wedell-Wedellsborg & Per Johannesen Madsen
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01
Group CEO comment and strategy update
Gregers Wedell-Wedellsborg
Group CEO
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Nordic strategy drives high revenue and earnings growth - revenue guidance changed to 5-7%
Accelerated profitable growth in Q2
6.8% growth YoY
Group proforma currency neutral
(Q1 was 6.1%)
12.6%
EBITDA margin before special items
(vs. 12.6% proforma currency neutral in
Q2 2023/24)
Q2: In line with expectations
- Revenue synergies gaining traction: Growth in all channels and all markets. KICKS online grew 24% (excl. Skincity).
-
Stable margins despite dilution from
"strategy playbook" investments, e.g. marketing and pricing, Skincity integration, KICKS in-house brands reset, and capability building. -
Ready for Black Friday and Christmas: Early Q3 inventory build-upto de-riskfirst
Christmas at KICKS' Logistics Center.
Raised low end of revenue guidance
- Revenue growth of 5% to 7%
(from 4% to 7%), exchange rate adjusted
-
- 4.6% to 6.6% (previously 3.2% to 6.2%)
- 14.5% to 15.5% EBITDA margin before special items (unchanged)
- CAPEX of DKK ~650 million (unchanged)
-
including DKK ~325 million for Matas'
Logistics Center
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Financial highlights Q2 2024/25: Proforma growth of 6.8% currency neutral and stable EBITDA margin of 12.6% before special items
Matas
(including subsidiaries)
Revenue, DKKm
1,149
(Q2 2023/24: 1,068)
Matas stand-alone growth
7.6%
Growth in stores and online
Gross profit margin
46.8%
(Q2 2023/24: 46.3% restated)
KICKS
Revenue, DKKm
702
(Q2 2023/24 proforma: 659)
Currency neutral growth
5.7% ( 10.4%excl. Skincity )
Growth in stores and online
Gross profit margin
44.8%
(Q2 2023/24 proforma: 45.1%)
Matas Group Q2 2024/25
Revenue, DKKm
1,851
(Q2 2023/24 proforma: 1,727)
Currency neutral growth
6.8%
(7.2% reported proforma growth)
EBITDA margin before special items
12.6%
(Q2 2023/24 12.6% currency neutral)
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Six strategic priorities to Win the Nordics: Continued progress in Q2 - synergies on track
All for you
More for you
Closer to you
Stronger for you
Roll out
"one-stop" offering
and concept
- Nordic launches of high-demand brands in both Matas & KICKS
- Investments in improved price perception
Expand and improve portfolio of in-house brands
- Matas Striber launched in KICKS - off to a good start
-
Discontinuation of subscale in- house brands in
KICKS
Take
e-commerce market
shares and fuel omni-experience
- Membership growth: >2m in Club Matas and >1m in KICKS Norway
- Online growth >20% in KICKS and Matas ~19%
Refresh, upgrade and open stores
- 2 store openings in Q2 (DK and NO)
- Helsinki flagship store opened in prime location in October
Integrate and share to operate efficiently
- Synergy realisation on track for 2025/26
-
Skincity migrating to
KICKS - Rosersberg OPEX progress, not yet at target
Build
long-term platform
and culture
- KICKS inventory build-up for Q3
-
Matas' Logistics
Center on plan - Matas ranked as a top 20 employer in Denmark
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More for you: Our first pan-Nordic brand launches: e.l.f and MILK launched in Matas and KICKS
|
Gen Z brand e.l.f. |
Hyped brand MILK |
Dyson Beauty (Hair tools) |
Kevin Murphy (Pro Hair) |
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Launched September, Matas & KICKS |
Launched in July, Matas & KICKS |
Launched in July, Matas |
Launched in September, KICKS |
Matas launched 50 new brands in Q2 and KICKS 18 new brands, including 11 new Pro Hair brands to strengthen our position within Hair
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More for you: In-house brand reset and Matas Striber September launch in KICKS - off to a good start
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Discontinued sub-scale in-house brands... |
… to focus on own and third party power brands |
Feedback on Matas Striber |
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Customer: |
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"For years, I have |
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stocked up on Matas |
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Striber when I'm in |
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Denmark. Finally, it's |
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here! Fantastic |
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products at a great |
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price." |
Store manager:
"Customers have embraced Matas Striber. Easy to explain and perfect for impulse buys." "Customers love the quality and price - great for add-on sales."
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Closer to you: More than 2 million members in Club Matas and over 1 million in KICKS Norway
- Member satisfaction (NPS) continues to improve
- Mainly younger demographics
- Shopping across more categories and channels
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Matas A/S published this content on November 15, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 15, 2024 at 07:02:22.693.
