Beter Bed revenue under pressure in 2013
Comunicato Precedente
Comunicato Successivo
-
2013 net revenue fell by 10% to EUR 357.4 million (2012: EUR 397.3 million).
-
Gross profit rose to 56.9% (2012: 56.3%).
-
Non-recurring expenses mainly for streamlining the Benelux formula portfolio and store closures in Spain amounted to EUR 7.4 million.
-
2013 net profit including non-recurring expenses and write-downs fell by 43.1% to EUR 8.2 million (2012: EUR 14.4 million); earnings per share stood at EUR 0.38 (2012: EUR 0.67).
-
Normalised net profit in 2013 (excluding non-recurring expenses) decreased by 36.8% to EUR 14.0 million (2012: EUR 22.2 million); normalised earnings per share stood at EUR 0.65 (2012: EUR 1.02).
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Dividend proposal: EUR 0.27 per share, payout ratio of 72%.
Key figures for the year
|
(in millions of EUR unless stated otherwise) |
2013
|
2012
|
Change |
|
Revenue |
357.4 |
397.3 |
-10.0% |
|
Change in revenue at comparable stores |
-11.2% |
-4.7% |
|
|
Gross profit (%) |
56.9% |
56.3% |
|
|
EBITDA |
22.3 |
38.1 |
-41.6% |
|
Operating profit/EBIT |
12.3 |
23.7 |
-48.2% |
|
Net profit |
8.2 |
14.4 |
-43.1% |
|
|
|
|
|
|
Earnings per share (in EUR) |
0.38 |
0.67 |
-43.3% |
|
Proposed dividend (in EUR) |
0.27 |
0.47 |
-42,6% |
|
Payout ratio |
72% |
70% |
|
|
|
|
|
|
|
Solvency |
56.6% |
50.4% |
|
|
Number of stores |
1,175 |
1,219 |
-3.6% |
|
Normalised EBITDA |
27.8 |
40.4 |
-31.3% |
|
Normalised operating profit/EBIT |
19.6 |
31.2 |
-37.0% |
|
Normalised net profit |
14.0 |
22.2 |
-36.8% |
|
Normalised earnings per share (in EUR) |
0.65 |
1.02 |
-36.9% |
|
|
|
|
|
Key figures for the fourth quarter
|
(in millions of EUR unless stated otherwise) |
Q4 2013
|
Q4 2012
|
Change |
|
Revenue |
90.8 |
100.8 |
-10.0% |
|
Change in revenue at comparable stores |
-9.2% |
-10.5% |
|
|
Gross profit |
58.3% |
58.0% |
|
|
Operating profit/EBIT |
0.5 |
4.5 |
-87.9% |
|
EBITDA |
3.8 |
11.9 |
-68.3% |
|
Net profit |
0.0 |
0.9 |
-102.8% |
|
Earnings per share (in EUR) |
0.00 |
0.05 |
-103.1% |
|
Normalised operating profit/EBIT |
6.9 |
10.6 |
-34.4% |
|
Normalised EBITDA |
8.3 |
13.0 |
-36.0% |
|
Normalised net profit |
4.9 |
7.5 |
-34.8% |
|
Normalised earnings per share (in EUR) |
0.22 |
0.34 |
-35.0% |
Ton Anbeek, Chief Executive Officer:
'2013 was a difficult year for our company. With the exception of Austria and Switzerland, the propensity to buy was under pressure in all markets, which was primarily reflected in lower visitor numbers. Despite a higher conversion, this ultimately led to 10% lower revenue. Germany saw a decline in the propensity to buy in the home furnishings segment in general and the bedroom furniture segment in particular. Our market share nevertheless grew. Consumer confidence dropped to a low point in the Netherlands. This led to fewer visitors in the stores. Two of our formulas, Slaapgenoten and Matrassen Concord in the Benelux, were hit particularly badly by this development, which forced us to decide to discontinue these formulas and to shift the strategic focus in the Netherlands and Belgium to Beter Bed and BeddenREUS. The group was able to raise gross profits further and achieve additional cost-savings in 2013. The net working capital was also reduced.
In anticipation of recovery of the markets, which is not expected before the fourth quarter of this year, we will begin working on relaunching and fine-tuning all the formulas in all the countries in which we are active. The initial steps in this process have already been taken for Beter Bed Benelux in early 2014. We will also continue to focus on measures in the field of cost-savings and improving margins. The group's financial position remains strong, with a healthy balance sheet and a strong cash position. This, combined with the commitment of our motivated employees, provides us with the foundation to look to the future with confidence despite the current difficult market conditions.'
Fourth quarter 2013
The revenue of Beter Bed Holding decreased by 10.0% to EUR 90.8 million in the fourth quarter of 2013 (fourth quarter 2012: EUR 100.8 million). The revenue at comparable stores fell by 9.2% (fourth quarter 2012: -10.5%).
Revenue performance per country in the fourth quarter was as follows:
|
Germany |
-4% |
||
|
The Netherlands |
-19% |
||
|
Switzerland |
-3% |
||
|
Austria |
+1% |
||
|
Spain |
-52% |
||
|
Belgium |
-14% |
||
|
|
|
|
|
Revenue in Germany decreased by 4% in the fourth quarter. Revenue at comparable stores fell by 7% in the fourth quarter (fourth quarter 2012: -8%). This decrease in revenue is attributable to low consumer spending in Germany within the home furnishings segment, which includes mattresses. In the Netherlands, a combination of a lower-than-average number of stores and a 16% decrease in revenue at comparable stores in the fourth quarter led to a 19% decrease in revenue. In Spain, the drop in revenue at comparable stores amounted to 14% in the fourth quarter.
Gross profit amounted to 58.3% in the fourth quarter of 2013 (fourth quarter 2012: 58.0%). Operating expenses decreased by 3.0% from EUR 54.0 million in 2012 to EUR 52.3 million in 2013. Average expenses per store increased by 0.8% in the fourth quarter of 2013. Operating profit (EBIT) in the fourth quarter of 2013 amounted to EUR 0.5 million (2012: EUR 4.5 million). Net profit in the fourth quarter of 2013 decreased to EUR 0.0 million (2012: EUR 0.9 million).
Streamlining of Benelux formula portfolio
For the sake of portfolio rationalisation Beter Bed Holding announced on 22 January 2014 its decision to close the Slaapgenoten and Matrassen Concord formulas in the Benelux in 2014. As a result of this the fixed assets of these formulas have been written down, a stock provision has been made and a provision for onerous rental contracts has been formed with a total negative effect on operating profit in 2013 of EUR 6.4 million and EUR 4.9 million on net profit.
Full year 2013
Revenue for the full year 2013 decreased by 10% to EUR 357.4 million (2012: EUR 397.3 million). This decline is due to the decrease in revenue at comparable stores of 11.2% (2012: -4.7%). The number of stores decreased by 44 to 1,175 (year-end 2012: 1,219 stores), primarily as a result of store closures in Spain. Continuing low consumer confidence in the Netherlands led to a 16% decrease in revenue at comparable stores. Consumers' reduced propensity to buy in the home furnishings and bedroom furnishings segments in Germany and the bad weather in the first half of the year led to an 8% decrease in revenue at comparable stores on an annualised basis.
Revenue performance per country in the full year 2013 was as follows:
|
Germany |
-5% |
||
|
The Netherlands |
-17% |
||
|
Switzerland |
+2% |
||
|
Austria |
+4% |
||
|
Spain |
-48% |
||
|
Belgium |
-25% |
||
|
|
|
|
|
Gross profit rose to 56.9% (2012: 56.3%) in 2013 due to substantially improved purchasing conditions. As a result of the initiated cost-savings program, operational expenses fell from EUR 200.1 million to EUR 190.9 million. Costs as a percentage of revenue rose from 50.4% to 53.4%.
Operating profit for the full year 2013 amounted to EUR 12.3 million (3.4% of revenue) compared to EUR 23.7 million (6.0% of revenue) in 2012. Net profit in 2013 amounted to EUR 8.2 million (2012: EUR 14.4 million). Earnings per share amounted to EUR 0.38 in 2013 (2012: EUR 0.67).
2013 and 2012 normalised
In addition to the non-recurring expenses of EUR 6.4 million in connection with the closure of the Slaapgenoten and Matrassen Concord formulas in the Benelux, the company incurred non-recurring expenses totalling EUR 1.0 million in early 2013 for the closure of the stores in Spain and the reorganisation of the head office in the Netherlands.
An amount of EUR 7.5 million in additional expenses was included in the 2012 financial statements for the write-down of the activities in Spain and other reorganisation expenses.
The normalised operational expenses decreased in 2013 by EUR 8 million to EUR 184.6 million (2012: EUR 192.6 million). The normalised average expenses per store decreased by 3.0% in 2013. The normalised operating profit fell from EUR 31.2 million (7.9% of revenue) to EUR 19.6 million (5.5% of revenue). Normalised net profit amounted to EUR 14.0 million in 2013 (2012: EUR 22.2 million).
Investments, cash flow and balance sheet positions
Total investments in 2013 amounted to EUR 5.4 million (2012: EUR 10.9 million). A total of EUR 3.7 million of this amount was invested in new and existing stores in 2013 (2012: EUR 7.2 million). The remaining amount has been invested primarily in IT. The cash flow (net profit plus depreciations and write-downs) amounted to EUR 18.2 million in 2013, compared to EUR 28.8 million in 2012. Solvency at year-end 2013 amounted to 56.6% (2012: 50.4%). Interest-bearing debt amounted to EUR 5.0 million at year-end 2013 (year-end 2012: EUR 12.3 million).
Operational
A total of 75 stores were opened and 119 stores were closed in 2013. The total number of stores consequently decreased by 44 on balance. The company had 1,175 stores at the end of 2013.
|
Number of stores |
31-12-2012 |
Closed |
Opened |
31-12-2013 |
|
Matratzen Concord |
1,004 |
72 |
70 |
1,002 |
|
Beter Bed |
88 |
- |
4 |
92 |
|
El Gigante del Colchón |
63 |
32 |
- |
31 |
|
BeddenREUS |
44 |
4 |
- |
40 |
|
Slaapgenoten |
16 |
7 |
- |
9 |
|
Schlafberater.com |
4 |
4 |
1 |
1 |
|
|
|
|
|
|
|
Total |
1,219 |
119 |
75 |
1,175 |
Matratzen Concord
The revenue of the cash & carry retail formula Matratzen Concord amounted to EUR 238.4 million in 2013 (66.7% of the total group revenue). This represents a decrease of 5.1% compared to 2012. Revenue at comparable stores decreased by 7.7%. The formula closed a net total of two stores in 2013. Twelve stores were opened on balance in Germany. The number of stores in the other countries decreased.
|
Number of stores |
31-12-2012 |
Closed |
Opened |
31-12-2013 |
|
Germany |
852 |
44 |
56 |
864 |
|
Austria |
67 |
7 |
4 |
64 |
|
Switzerland |
52 |
10 |
9 |
51 |
|
The Netherlands |
27 |
9 |
- |
18 |
|
Belgium |
6 |
2 |
1 |
5 |
|
Total |
1,004 |
72 |
70 |
1,002 |
Beter Bed
This formula is active in the Netherlands and Belgium. The number of Beter Bed stores grew by four from 88 to 92 as a result of store openings in Belgium. Revenue fell by 12.6% in 2013 to EUR 89.5 million (2012: EUR 102.4 million). The formula consequently contributes 25.0% to the total group revenue. Beter Bed's revenue at comparable stores fell by 13.5% for the full year 2013. Online revenue performed according to expectation in 2013 and contributed approximately 5% to the total revenue.
Other formulas
The revenue of the other formulas amounted to EUR 29.5 million in 2013 (2012: EUR 43.7 million). This includes the revenue of the BeddenREUS (Netherlands), Slaapgenoten (Netherlands), El Gigante del Colchón (Spain) retail formulas and the wholesaler DBC. These other formulas contribute 8.3% to the total group revenue.
Dividend
Beter Bed Holding N.V.'s dividend policy is aimed at maximising shareholder return while at the same time maintaining a solid capital position. The company aims to distribute at least 50% of its net profit to the shareholders provided that its solvency is not less than 30% and the net-interest-bearing debt/EBITDA ratio does not exceed two.
In November 2013, the company paid an interim cash dividend of EUR 0.20 per share. A proposal will be submitted to the Annual General Meeting of Shareholders, scheduled for 19 May 2014, to distribute a final cash dividend of EUR 0.07. This brings the dividend for 2013 to EUR 0.27 per share (2012: EUR 0.47 per share) and 72% of net profit will be distributed to shareholders.
Auditor's report
The financial information in the appendices is taken from the consolidated financial statements of Beter Bed Holding N.V., which will be submitted for adoption to the Annual General Meeting of Shareholders on 19 May 2014, and for which an unqualified auditor's report has been issued by the independent auditor.
Developments and outlook 2014
The company expects that the economic situation in the Netherlands will only begin to recover cautiously at the end 2014 or beginning of 2015. This will be followed by an increase in consumer spending. It is also still too early to be able to detect a change in German consumers' buying behaviour. There will consequently not be a substantial increase in revenue in the short term. The various formulas will be fine-tuned further in the months ahead, with the related focus being on increasing the number of visitors, the conversion, the service and customer satisfaction. In addition, priority will be placed on improving margins, reducing costs and closing poor-performing stores.
Profile
Beter Bed Holding N.V. operates in the European bedroom furnishings market. Its activities include retail trade through a total of 1,175 stores at the end of 2013 that operate via the chains Beter Bed (active in the Netherlands and Belgium), Matratzen Concord (active in Germany, Switzerland, Austria, the Netherlands and Belgium), El Gigante del Colchón (active in Spain), BeddenREUS and Slaapgenoten (both active in the Netherlands). Beter Bed Holding is also active in the field of developing and wholesaling branded products in the bedroom furnishing sector in the Netherlands, Germany, Belgium, Spain, Austria, Switzerland and the United Kingdom via its subsidiary DBC International. Beter Bed Holding N.V. achieved net revenue of EUR 357.4 million in 2013. More than 67% of the group's net revenue is realised outside the Netherlands. The company has been listed on the NYSE Euronext Amsterdam since 1996 and is included in the Amsterdam Small Cap Index.
Financial Calendar
Analysts' Meeting annual results 2013 week 11 14.03.2014
Publication Annual Report 2013 week 13 24.03.2014
Annual General Meeting of Shareholders week 21 19.05.2014
Publication Q2 2014 trading statement week 29 18.07.2014
Publication interim figures 2014 week 34 22.08.2014
Analysts' Meeting interim figures 2014 week 34 22.08.2014
Publication Q4 2014 trading statement week 4 23.01.2015
For further information: _____________________________________________________________________________
|
Ton Anbeek |
Bart Koops |
|
CEO |
CFO |
|
+31 (0)413 338819 |
+31 (0)413 338819 |
|
+31 (0)6 53662838 |
+31 (0)6 46761405 |
|
ton.anbeek@beterbed.nl |
bart.koops@beterbed.nl |
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