Van de Velde NV

Earnings Release • Feb 27, 2025

27.02.2025 – 08u00 Regulated information – Year results 2024

Van de Velde achieves a stable second half of the year.

• Van de Velde reports in 2024 a comparable turnover of 205.8 m€, a slight decrease of 3.0%.

• The comparable turnover in the D2C segment increases by 11.3%.

• Net group profit for the period is 32.0 m€ compared with 33.6 m€ in 2023.
• A dividend of 2.40 € per share entitled to dividends will be proposed to the General Meeting of Shareholders.

CONSOLIDATED KEY FIGURES PROFIT AND LOSS STATEMENT (PREPARED IN ACCORDANCE WITH IRFS)

	31.12.2024	31.12.2023	%
Key figures consolidated profit and loss account (in m€)
Turnover (1)	206.4	211.3	-2.3%
Operating profit before depreciation and amortization ('EBITDA') (3)	50.6	56.1	-9.8%
EBIT of Operating Profit	40.2	45.3	-11.3%
Profit for the year	32.0	33.6	-4.7%
Turnover	206.4	211.3	-2.3%
Effect of early deliveries	-0.7	0.8
Turnover on a comparable basis (2)	205.8	212.1	-3.0%
EBITDA on a comparable basis (2)	50.2	56.6	-11.3%

Our CEO Karel Verlinde looks back on 2024:

"The development of the D2C segment and the transition within the B2B segment played a key role for Van de Velde in 2024. Together with strong working capital control this results again in a strong cash position, allowing us to continue investing in our brands and customer service in 2025."

(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 2024, this adjustment amounted to -0.7 m€, being the invoiced turnover in 2023 for early deliveries of the summer 2024 collection, corrected with the invoiced turnover in 2024 for early deliveries of the summer 2025 collection. In 2023, this was a correction of 0.8 m€, being the invoiced turnover in 2022 for early deliveries of the summer 2023 collection, corrected with the invoiced turnover in 2023 for early deliveries of the 2024 collection. (3) EBITDA equals operating profit plus depreciation and amortization of intangible and tangible fixed assets.

⁽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.

TURNOVER

On a comparable basis (including comparable seasonal deliveries), the consolidated turnover decreases by -3.0% in 2024 to 205.8 m€. The reported turnover decreases (-2.3%) from 211.3 m€ to 206.4 m€.

The comparable turnover evolution consists of the following components:

In m€	31.12.2024	31.12.2023	%
Turnover B2B segment (1)	153.3	163.2	-6.1%
Turnover D2C segment (2)	53.1	48.0	10.6%
Total Turnover	206.4	211.3	-2.3%
Early deliveries summer collection 2024 and
2023	-5.2	-4.6
Early deliveries summer collection 2023 and
2022	4.6	5.4
Comparable turnover B2B segment	152.6	164.3	-7.1%
Comparable turnover D2C segment	53.1	47.8	11.3%
Total comparable turnover	205.8	212.1	-3.0%

In 2024, we continued to develop our D2C segment, resulting in an 11.3% increase in sales compared to last year, totaling 53.1m€. This growth was mainly driven by our digital channels. Through targeted marketing activation, our brands continue to win consumers. In addition, we continued to roll out our digital strategy to new markets and platforms. In doing so, we are offsetting the transition of physical retail stores. We continue to support the independent retail partner to maintain our strong market position.

B2B sales were €152.6m€, down -7.1% from last year. In the first half of the year, sales were negatively impacted by a significant decline in swim sales, while the second half of the year saw a gradual improvement. This stabilization was partly driven by a targeted strategy to strengthen the availability of our brands in a controlled way in larger city centers, through collaborations with premium department stores.

EBITDA

On a comparable basis (including comparable seasonal deliveries), the consolidated EBITDA in 2024 amounts to 50.2 m€ versus 56.6 m€ in 2023. The reported EBITDA decreases by 9.8% in 2024, from 56.1 m€ in 2023 to 50.6 m€. The EBITDA on a comparable basis remains strong at 24.4% of the turnover (26.7% in 2023).

This EBITDA evolution is the result of a turnover decrease, combined with targeted additional marketing investments and rising wage costs due to inflation. These profitreducing factors were offset by specific cost savings and productivity initiatives.

⁽¹⁾ The B2B segment refers to sales realized at wholesale price. Today this concerns the business with independent retail and 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 own store network, our own websites and the concession sales in department stores

FINANCIAL RESULT

The financial result amounts to 0.3 m€ in 2024 compared to -0.3 m€ in 2023. The difference of 0.6 m€ can mainly be explained by growth in interest earned on liquid assets.

RESULT FROM PARTICIPATIONS BASED ON THE 'EQUITY'-METHOD

The result of the participation (25.66%) in Top Form International Ltd., based on 'equity' method, is 0.2 m€ versus -2.3 m€ in 2023.

The final results were published by Top Form International Ltd. on February 25.

INCOME TAX AND NET PROFIT

The tax rate amounts to 21.5% compared to 20.2% in 2023.

The group profit amounts to 32.0 m€ in 2024 compared to 33.6 m€ in 2023.

CONSOLIDATED KEY FIGURES BALANCE SHEET (PREPARED IN ACCORDANCE WITH IFRS)

Key figures consolidated balance sheet	31.12.2024	31.12.2023	%
Balance sheet (in m€)
Fixed assets	79.0	76.4	3.4%
Current assets	123.4	126.5	-2.5%
Total assets	202.4	203.0	-0.3%
Equity	162.4	165.9	-2.1%
Grants	0.0	0.1
Total non-current liabilities	10.9	9.1	19.8%
Total current liabilities	29.0	27.9	3.9%
Total equity and liabilities	202.4	203.0	-0.3%

INVESTMENTS

Capital expenditure (excluding right of use assets) amounts to 6.4 m€ in 2024 versus 13.1 m€ in 2023.

The intensive investment program in Tunisia in 2023 was completed this year. The remaining investments were focused on further optimizing the brand experience, both on digital platforms and in physical stores, as well as on improvements to our production site in Wichelen.

WORKING CAPITAL AND SOLVENCY

Working capital (current assets excluding cash and cash equivalents less current liabilities excluding financial debts) amounts to 38.8 m€ in 2024 and has significantly improved compared to 41.0 m€ in 2023.

Solvency (share of equity in total equity) of Van de Velde remains high (80.3%). The current assets amount to four times the current liabilities, which indicates a strong liquidity.

EVENTS AFTER THE BALANCE SHEET DATE

No events happened after the balance sheet date that could have had a major impact on the state of the group.

PROSPECTS

Despite current market conditions, we look forward to 2025 with confidence. The strong market position of our Primadonna and Marie Jo brands in the Benelux and Germany, combined with a growing physical and digital presence, form a solid foundation for the future. The launch of Sarda in September 2024 is gaining momentum: we now reach more consumers than with Andres Sarda.

SHARE BUY-BACK PROGRAM

On 28 February 2024, the Board of Directors approved a share buy-back program for a maximum amount of 15 m€. The buy-back program expires on 3 March 2025.

In 2024, 207,985 shares were purchased to a value of 6.6 m€ as part of this program and the previous one. On 15 March 2024, 8,000 shares were exercised as part of an option program. In total, 449,386 shares are in possession of Van de Velde on 31 December 2024.

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 program is carried out by an independent broker with a discretionary mandate, which means that the purchases take place in both open and closed periods. Van de Velde regularly provides information about the purchase transactions carried out.

On February 26, 2025, the Board of Directors approved a share buy-back program for a maximum amount of 15 m€. This program will start on March 4, 2025, and has an expected duration of one year. The program demonstrates the company's confidence in its strategy.

CONSOLIDATED KEY FIGURES

The consolidated profit and loss statement, as well as the detailed overview of other costs and revenues, can be found via this link.

REPORT OF THE COMMISSIONER ON THE ANNUAL INFORMATION AS OF DECEMBER 31, 2024

The statutory auditor, PwC Bedrijfsrevisoren, represented by Lien Winne has confirmed that the audit, which is substantially complete, has not to date revealed any material misstatement in the draft consolidated financial statements, and that the accounting data reported in the press release is consistent, in all material respects, with the draft consolidated accounts from which it has been derived.

Van de Velde creates fashionable lingerie of superior quality with its premium. complementary brands Primadonna. Marie Jo and Sarda. We believe in 'we ignite the power in 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 colleagues and is listed on Euronext Brussels.

CONTACTS

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 President Board of Directors Karel Verlinde CommV, always represented by Karel Verlinde CEO