Earnings Release • Mar 2, 2023
Earnings Release
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02.03.2023 – 08u00 Regulated information – Year results 2022
| Consolidated key figures | 31.12.2022 | 31.12.2021 | % |
|---|---|---|---|
| Profit and loss statement (in m€) | |||
| Turnover (1) | 211.7 | 195.3 | 8.4% |
| Operating profit before depreciation and amortization ('EBITDA') (3) |
58.2 | 55.0 | 5.8% |
| EBIT or operating profit | 48.1 | 41.8 | 15.1% |
| Group profit | 36.8 | 32.0 | 14.9% |
| Turnover | 211.7 | 195.3 | 8.4% |
| Effect of early deliveries | -0.4 | -4.1 | |
| Turnover on a comparable basis (2) | 211.4 | 191.2 | 10.6% |
| EBITDA on a comparable basis (2) | 58.0 | 52.3 | 10.8% |
(1) The turnover in the first half of the year includes the swim collection, which leads to a higher turnover compared to the second half of the year. (2) Turnover and EBITDA on a comparable basis are the turnover and EBITDA adjusted for the effect of early deliveries in order to show the same seasons. In 2022, this adjustment was -m€ 0.4, being the invoiced turnover in 2022 for deliveries of the 2023 summer collection, corrected with the invoiced turnover in 2021 for deliveries of the 2022 summer collection. In 2021, this was a correction of -m€ 4.1, being the invoiced turnover in 2021 (deliveries summer 2022 collection) corrected with the invoiced turnover in 2020 (deliveries summer collection 2021).
(3) EBITDA equals operating profit plus depreciation and amortization of intangible and tangible fixed assets.
On a comparable basis (including comparable seasonal deliveries), the consolidated turnover increases by 10.6% in 2022 from m€ 191.2 to m€ 211.4. The reported turnover increases by 8.4% from m€ 195.3 to m€ 211.7.
The comparable turnover evolution consists of the following components:
| In m€ | 31.12.2022 | 31.12.2021 | % |
|---|---|---|---|
| Turnover B2B segment (1) | 168.7 | 156.7 | 7.6% |
| Turnover D2C segment (2) | 43.1 | 38.6 | 11.7% |
| Total turnover | 211.7 | 195.3 | 8.4% |
| Early deliveries summer collection in 2022 and | |||
| 2021 | -5.4 | -5.0 | |
| Early deliveries summer collection in 2021 en | |||
| 2020 | 5.0 | 0.9 | |
| Comparable turnover B2B segment | 168.2 | 152.7 | 10.1% |
| Comparable turnover D2C segment | 43.2 | 38.5 | 12.2% |
| Total comparable turnover | 211.4 | 191.2 | 10.6% |
In the B2B segment, the comparable turnover grows by 10.1% to m€ 168.2 and in the D2C segment by 12.2% to m€ 43.2. In both segments, the following trends can be observed:
On a comparable basis (including comparable seasonal deliveries), the consolidated EBITDA in 2022 increases by 10.8%, from m€ 52.3 in 2021 to m€ 58.0. The reported EBITDA increases by 5.8%, from m€ 55.0 in 2021 to m€ 58.2 in 2022.
The EBITDA on a comparable basis amounts to 27.4% and is in line with 2021. A positive price and exchange rate impact was offset by the negative impact of inflation and the higher depreciation of stock.
(1) The B2B segment refers to sales realized at wholesale price. Today this concerns the business with independent retail, e-tail partners, franchisees and department stores.
(2) The D2C segment refers to sales realized at retail price. Today this concerns the business from our store network, our websites and the concession sales in department stores and marketplaces.
The financial result amounts to -m€ 1.3 in 2022 compared to -m€ 1.0 in 2021. The difference of -m€ 0.3 is mainly explained by the impact of exchange rate conversions.
The result of the participation in Top Form International Ltd (25.66%) in the first half of 2022 amounts -m€ 0.7, based on the equity-method. The final results have been published by Top Form International Ltd on 22 February 2023.
Van de Velde values the participation in Top Form International Ltd based on Van de Velde's share in the equity of Top Form International Ltd, being 25.66% of the equity. The carrying amount of the stake amounts to m€ 13.6 on 31 December 2022. The value of this participation based on the share price on that date is m€ 3.7. Additional analyses show no need for an impairment of the financial fixed asset.
The tax rate amounts to 19.7%, compared to 20.3% in 2021.
In 2022, the net profit totals up to m€ 36.8 versus m€ 32.0 in 2021, an increase of 14,9%.
| Consolidated key figures | 31.12.2022 | 31.12.2021 | % |
|---|---|---|---|
| Balance sheet (in m€) | |||
| Fixed assets | 72.1 | 73.3 | -1.7% |
| Current assets | 136.4 | 133.9 | 1.9% |
| Total assets | 208.4 | 207.2 | 0.6% |
| Equity | 168.1 | 163.1 | 3.1% |
| Grants | 0.2 | 0.3 | -28.6% |
| Total non-current liabilities | 8.0 | 11.4 | -29.7% |
| Total current liabilities | 32.1 | 32.4 | -0.9% |
| Total equity and liabilities | 208.4 | 207.2 | 0.6% |
Capital expenditure (excluding right-of-use assets) amounts to m€ 8.1 in 2022 compared to m€ 4.7 in 2021. These investments primarily relate to the expansion of our new production site in Tunisia, the further development of digital platforms and the implementation of a new warehouse management system.
Working Capital (current assets excluding cash and cash equivalents less current liabilities excluding financial debts) increases and amounts to m€ 48.1 in 2022 versus m€ 31.7 in 2021. This increase is mainly caused by a planned higher inventory level, which supports further growth and guarantees delivery reliability. The stock value is also impacted by inflation. Furthermore, trade receivables increase in line with the turnover.
The solvency (share of equity in total equity) of Van de Velde remains high (80.7%). The current assets represent 4.2 times the current liabilities, which indicates strong liquidity.
No events happened after the balance sheet date that could have had a major impact on the state of the group.
The conflict between Ukraine and Russia has no direct influence on Van de Velde's operations. We don't purchase raw materials from suppliers in this region, and our commercial activities in this region are very limited.
In recent years, we have shown that long-term thinking in a challenging economic situation is our strength. For next year, Van de Velde's ambition is to maintain this long-term focus in an unpredictable environment, and to execute the strategic plan further.
For the financial year 2022, the Board of Directors proposes to the General Meeting of Shareholders to pay a dividend of € 2.20 per share (net € 1.54). After approval by the General Meeting of Shareholders, the financial dividend will be made payable on May 3, 2023. Van de Velde has sufficient financial resources, which allows for the necessary investments to guarantee the competitivity of the company.
On 23 February 2022, the Board of Directors approved a share buy-back programme for a maximum amount of m€ 15. This programme came to an end on 28 February 2023.
During 2022, 141,849 shares were purchased as part of this programme. In total, 335,889 shares are in possession of Van de Velde NV on 31 December 2022.
On 1 March 2023, the Board of Directors approved a new share buy-back programme for a maximum amount of m€ 15. The buy-back programme will start on 2 March 2023 and has a planned duration of one year. The goal of this buy-back programme is to reduce the cash surplus of the company.
The purchases are made in accordance with the applicable laws and regulations and within the framework of the mandate granted by the Extraordinary General Meeting of 27 April 2022. The programme is carried out by an independent broker with a discretionary mandate, meaning that the purchases occur in both open and closed periods. Van de Velde regularly provides information about the purchase transactions carried out.
The exhaustive financial report (including regulated information and the statement of limited supervision of the commissioner) can be consulted through this link.
Our statutory auditor, EY Bedrijfsrevisoren BV, represented by Francis Boelens, has confirmed that his audit procedures on the consolidated financial statements have been thoroughly completed and have not revealed any significant corrections that should be made to the accounting data included in this press release.
Van de Velde creates fashionable lingerie of superior quality with its premium, complementary brands PrimaDonna, Marie Jo and Andres Sarda. We believe in 'Shaping the bodies and minds of women': we want to make a difference in women's lives with our beautiful and perfectly fitted lingerie, by lifting their self-confidence and self-image. For us, an impeccable in-store service is key, an approach which we have consolidated in our Lingerie Styling Concept.
We work in close partnership with 3.600 independent lingerie boutiques worldwide. In addition, we have our own retail network with retail brands Rigby & Peller and Lincherie. Our geographical center of gravity is Europe and North America. Van de Velde employs almost 1,500 employees and is listed on Euronext Brussels.
For more information, you can get in touch with:
Van de Velde NV - Lageweg 4 - 9260 Schellebelle - +32 (0)9 365 21 00 - www.vandevelde.eu
Herman Van de Velde NV, always represented by Herman Van de Velde Chairman of the Board
Karel Verlinde CommV, always represented by, Karel Verlinde CEO
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