Earnings Release • Feb 27, 2018
Earnings Release
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| Consolidated key figures | 31.12.2017 | 31.12.2016 | % (3) |
|---|---|---|---|
| INCOME STATEMENT (IN M€) | |||
| Turnover | 209.0 | 206.6 | 1.2% |
| Turnover on comparable basis (1) | 205.6 | 206.8 | (0.6%) |
| Other operating income | 5.7 | 5.2 | 8.0% |
| Cost of materials | (45.4) | (42.6) | 6,5% |
| Other expenses | (69.6) | (63.6) | 9.3% |
| Personnel expenses | (44.0) | (43.7) | 0.7% |
| Operating profit before depreciation and | 55.7 | 61.9 | (10.1%) |
| amortization ('EBITDA') (2) | |||
| EBITDA on comparable basis (1) | 53.5 | 62.0 | (13.9%) |
| Depreciation and amortization | (7.7) | (8.3) | (6.9%) |
| EBIT or operating profit | 48.0 | 53.6 | (10.6%) |
| Impairment of goodwill and intangible assets with indefinite useful life |
0.0 | 0.0 | N/A |
| Financial result | (0.2) | (0.3) | N/A |
| Share on result of associates | (0.3) | (0.5) | N/A |
| Profit before taxes | 47.5 | 52.8 | (10.1%) |
| Income taxes | (13.6) | (19.4) | (29.6%) |
| Result of the period attributable to non-controlling | (0.1) | (0.1) | N/A |
| interests | |||
| Profit for the period attributable to the owners of the company |
33.9 | 33.6 | 1.2% |
| BALANCE SHEET (IN M€) | |||
| Fixed assets | 69.7 | 71.9 | (3.1%) |
| Current assets | 89.1 | 84.8 | 5.1% |
| Total assets | 158.8 | 156.7 | 1.3% |
| Shareholders' equity | 121.8 | 116.6 | 4.4% |
| Non-controlling interest | 0.4 | 0.6 | (24.8%) |
| Grants | 0.2 | 0.0 | N/A |
| Non-current liabilities | 4.9 | 4.9 | 0.7% |
| Current liabilities | 31.5 | 34.6 | (9.1%) |
| Total equity and liabilities | 158.8 | 156.7 | 1.3% |
| KEY FIGURES IN € PER SHARE | |||
| EBITDA | 4.2 | 4.6 | (10.1%) |
| Profit for the period attributable to the owners of the company |
2.5 | 2.5 | 1.2% |
(1) Turnover and EBITDA on a comparable basis are reported turnover and EBITDA corrected for the effect of early deliveries in order to compare the same seasons.
Dividend per share 1.03 3.50 (70.6%)
(2) EBITDA equals operating profit plus depreciation and amortization on fixed intangible and tangible assets.
(3) Percentages can differ as a result of rounding.
The statutory auditor has issued an unqualified opinion on the consolidated financial statements. The accounting figures in this release are consistent with the figures in the consolidated financial statements.
For the fiscal year 2017 the reported turnover of Van de Velde increased by 1.2% from m€ 206.6 to m€ 209.0. At constant exchange rates, the reported turnover showed growth of 1.9%.
On comparable basis (including comparable season deliveries and at constant exchange rates), the turnover increased by of 0.2%. Taking the negative exchange rate effect into account, the consolidated turnover decreased by 0.6% to m€ 205.6.
The turnover development consists of the following components:
The reported EBITDA decreased by 10.1%, from m€ 61.9 to m€ 55.7 in the fiscal year 2017. On a comparable basis (including comparable deliveries), the consolidated EBITDA decreased by 13.9%, from m€ 62.0 to m€ 53.5. The main reasons for the decline in EBITDA are:
In 2017 no impairment charges were recorded.
The financial result is in line with last year. After correction for the dividend received from Top Form, there is a limited decrease in financial result mainly by lower net exchange results.
The result based on the equity method is m€ 0.2 higher than last year. This improvement is attributable to a higher contribution of Top Form (m€0.1 higher than last year) as well as that of Private Shop (m€0.1 higher than last year). The situation of Private Shop has stabilised after the capital increase from the beginning of 2017 which results in a slight improvement of the results.
The profit tax is lower compared to the same period last year, both due to lower profit before tax and, above all, because of a lower effective tax rate of 28.6% (compared to 36.4% during the same period last year).
In 2017, the Group profit increases by 1.2% from m€ 33.6 to m€ 33.9. This results in net profit per share of €2.52.
The cash position at the end of 2017 was m€ 21.8 (versus m€ 18.5 at the end of 2016). The operational cash flow amounted to m€ 35.0 in 2017 versus m€ 45.1 in 2016. The decrease is mainly due to higher paid taxes. The net investments amounted to m€ 5.2 in 2017.
Working capital (current assets excluding cash and cash equivalents minus short-term liabilities excluding financial debts) rose from m€ 32.2 to m€ 36.1, mainly due to lower short-term taxes per closing.
The solvability (share of equity in total assets) of the Van de Velde group remains very strong (76.7% at the end of 2017 versus 74.4% in 2016). Current assets amount to 2.8 times the short-term liabilities (versus 2.4 at the end of 2016) which indicates a very strong liquidity.
The Group is completely self-financed.
For the financial year of 2017 the Board of Directors will propose to the General Meeting of Shareholders a dividend of € 1.03 (net dividend of € 0.721). The proposed dividend corresponds to a payout ratio of 40% of the Group's consolidated profit increased with the result based on the equity method. After approval by the General Meeting of Shareholders, the final dividend of € 1.03 per share (net dividend of € 0.721 per share) will be paid out as from 4 May 2018.
There are sufficient remaining sources of finance (including cash position) to make all the investments needed to protect the competitiveness of the company.
After the balance sheet date no events with a significant impact on the Group's financial position occurred.
In 2018, we aim to restore the turnover growth to the historic average, partly with the introduction of Marie Jo Swim and the impact of the initiatives that were set up in 2017. The scalable platform we are building will entail a further marked increase in costs and investments in 2018. While this will put pressure on profit development, the Board of Directors and management fully support these initiatives to achieve future growth.
Van de Velde is the powerhouse of world class brands PrimaDonna, Marie Jo and Andres Sarda. Our mission is to deliver the ultimate personalized consumer experience. As a leading player in the luxury and fashionable women's lingerie, swimwear and sportswear sector, Van de Velde bases its long-term strategy on developing and expanding brands upon Lingerie Styling. This proprietary concept combines fit, style and fashion. Our key markets are in Europe and North America and we work closely together with 5,000 on- & offline specialty lingerie stores worldwide. We run our own premium retail chains, under the names Rigby & Peller, Lincherie and Private Shop, in which we exemplify the principles of Lingerie Styling. Van de Velde is listed on Euronext Brussels.
For more information, contact:
Van de Velde NV – Lageweg 4 – 9260 Schellebelle – +32(0)9 365 21 00 www.vandevelde.eu
always represented by always represented by Erwin Van Laethem Bart Rabaey Chief Executive Officer Chief Financial Officer
Positron BVBA, Bart Rabaey Consulting VOF,
For recent pictures, visit our press platform: http://pressroom.vandevelde.eu Click on the link "Media" at the top right corner to find up to date pictures
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