The organic turnover grew by 1,1%, a very satisfactory result taking into account the current economic climate. The non-Euro zone is affected by weak exchange rates in the United Kingdom and Scandinavia.
The turnover of the own shops (“store-to-store”) grew by 11%, and this after a very strong 2008.
Sarda’s turnover is showing a weaker performance and is suffering an important decrease versus last year. This turnover decline is mainly due to Spain and is also related to the general economic conditions, the discontinuation of unprofitable customers and other measures.
The gross margin excluding Sarda is maintained, supporting the fact that Van de Velde is pursuing its strategy of “trading up” (high quality, high service) also under difficult economic conditions.
With respect to costs, 2009 will be a transition year. In the first half of 2009, a one-off restructuring cost for Hungary is recognized (m€ 1,1) – please refer to press release dated 6 January 2009. The second half of 2009 will be affected by a reorganization in Sarda, whereby logistic activities are transferred from Spain to Wichelen. Also a number of administrative services will be transferred from Spain to Belgium. However, the initial intention to organize all collection design and marketing in Spain is entirely maintained.
Both reorganisations (Barcelona and Hungary) will decrease the recurring cost base of Van de Velde in 2010.
The general and fixed costs are higher in 2009 because Van de Velde is continuing all projects contributing to growth (design, retail, sales and sales support). The general and fixed cost base will decrease in 2010 because measures have been taken to bring down the fixed cost base. These measures will have an impact as from second half of 2009 with an increasing impact in 2010.
This results for Van de Velde excluding Sarda in a decrease of the recurring EBITDA of 1,8% compared to the same period last year.
Intimacy has a positive contribution to the profit, on the other hand Topform reports a net loss. The sum of both is slightly negative.
For prudence reasons, the Board of Directors has decided to fully write off the CDOs through a one-off adjustment.
The profit for the period decreases from m€ 17,2 to m€ 15,0 with a decrease of the profit per share from € 1,27 to € 1,13.
For the traditional Van de Velde brands a stable turnover development in the second half of 2009 is aimed for. Sarda will not recover in the second half of 2009 and will have a negative contribution to the EBITDA.
With respect to turnover, the first indications for 2010 are positive. This is due to, amongst others, a good market reception of the new line PrimaDonna – TWIST. Management is optimistic with respect to the first semester of 2010 thanks to the expected turnover growth, in combination with a lower cost base for 2010.
The interim financial report (including regulated information and the report of the statutory auditor on the half year information) is available through the following link:
Click here
A number of key figures are presented below and further explained in the financial report:
Financial key figures
Profit and loss statement (in m€)
30.06.2009 (1)
30.06.2008
73,0 (68,3)
67,6
23,8 (24,5)
25,0
22,7 (23,5)
21,1 (22,0)
23,5
Result before tax
20,2
23,8
15,0
17,2
Balance sheet (in m€)
30.06.2009
31.12.2008
60,8
66,1
79,0
71,2
139,8
137,3
123,1
120,9
2,7
3,2
14,0
13,2
Total liabilities
Key figures in € per share
13.322.480
13.556.710
1,13
1,27
26,00
28,70
(1) Figures excluding Sarda are added between brackets when deemed relevant.(2) REBITDA equals operational profit plus depreciation and amortisation plus one-off cost for the closure in Hungary (m€ 1,1).(3) EBITDA equals operational profit plus depreciation and amortisation.
For more information contact:
Van de Velde NV – Lageweg 4 – 9260 Schellebelle – 09 365 2100www.vandevelde.eu
Ignace Van DoorselaereChief Executive Officer
Stefaan VandammeChief Financial Officer
