Matas interim report – Q1 2023/24

Company announcement no. 11 2023/24
Allerød, 16 August 2023

Interim report – Q1 2023/24

(1 April – 30 June 2023)

Customer traffic combined with broader assortment drive revenue and EBITDA growth

• Matas generated a total revenue of DKK 1,150 million in Q1 2023/24 corresponding to a year-on-year increase of 9.2% from DKK 1,054 million in Q1 2022/23.

• Gross margin was 44.0% in the quarter, in line with expectations and last year.
• EBITDA before special items came to DKK 201 million in Q1 2023/24 compared to DKK 192 million last year, and the EBITDA margin before special items was 17.5% in the quarter against 18.2% last year.
• Profit for the period amounted to DKK 49 million after tax compared to DKK 69 million last year, impacted by the higher interest costs and special items relates to the expected acquisition of Kicks Group AB.
• Free cash flow was an inflow of DKK 201 million in Q1 2023/24 compared to an inflow of DKK 99 million in Q1 2022/23.
• As communicated in company announcement no. 10 2023/24 on 15 August, Matas upgrades its financial expectations for the financial year 2023/24, based on the strong revenue development in Q1 2023/24 - as well as current trading. Revenue growth is now expected to be in the range of 4-7% (previously 3-6%). EBITDA margin before special items is expected to be around 17% (unchanged compared to previous guidance). CAPEX, excl. M&A, of DKK 425-450 million incl. DKK 250 million to Matas Logistics Center (unchanged compared to previous guidance).
• The acquisition of Kicks Group is expected to reach closing by end of August 2023.

Gregers Wedell-Wedellsborg, CEO of Matas A/S:

"We are very pleased to see growth across all our channels, with stores growing 3% for the quarter and our online business with even higher momentum delivering 26% growth vs last year.
Our customers continue to shop more frequently with Matas, and supported by our assortment expansion, we see strong growth both within Mass Beauty as well as Health and Wellbeing. We introduced 59 new brands and thousands of products and increased our inventories marginally to ensure faster delivery and convenience for our customers.”

Key figures and ratios

Q1 2023/24 highlights

• Matas generated total revenue of DKK 1,150 million in Q1 2023/24, a year-on-year increase of 9.2% from DKK 1,054 million in Q1 2022/23. Retail sales increased by 8.9% to DKK 1,121 million, while underlying like-for-like sales grew by 8.4%.
• All categories showed strong growth in the quarter with Mass Beauty as well as Health and Wellbeing delivering 10% and 16%, respectively. The Private labels share increased to 18.3 %, vs. 17.4% last year.
• Revenue increased across all sales channels. Growing sales by DKK 68 million, equivalent to 26%, the on-line business accounted for 28% overall and for the majority of the growth for the quarter. Stores continued to grow at 3%.
• Footfall was strong, and the number of transactions increased by 8.0% to 6.0 million.
• The average basket size increased by 0.6% to DKK 188 per transaction.
• Gross profit for Q1 2023/24 amounted to DKK 506 million compared to DKK 466 million in Q1 2022/23.
• The gross margin for Q1 2023/24 was 44.0%, which is in line with last year.
• Other external costs amounted to DKK 111 million in Q1 2023/24 corresponding to an increase of DKK 34 million compared to DKK 78 million in Q1 2022/23 mainly due to variable shipping and marketing cost driven by online growth. Other external costs included special items of DKK 21.1 million in Q1 2023/24 attributable to the preparation of the Kicks Group acquisition. Q1 2022/23 special items amounted to DKK 4.8 million.
• EBITDA before special items came to DKK 201 million and the EBITDA margin before special items was 17.5% against 18.2% in Q1 2022/23.
• The total amortisation, depreciation and impairment charges were up by DKK 2 million to DKK 91 million in Q1 2023/24.
• Profit for the period amounted to DKK 49 million after tax against DKK 69 million in Q1 2022/23 due to higher interest cost and special items.
• The Q1 2023/24 free cash flow was an inflow of DKK 201 million compared to an inflow of DKK 99 million in Q1 2022/23.

Webcast
Matas will host a webcast for investors and analysts on Wednesday, 16 August at 11:00 a.m. CEST. The webcast and the presentation can be accessed from Matas’ investor website: https://investor.matas.dk.

Webcast access numbers for investors and analysts:

DK: +45 78 76 84 90

UK: +44 203 769 6819

US: +1 646 787 0157

PIN for all countries: 915912

Link to webcast: https://matas-events.eventcdn.net/events/q1-report-2023

Contacts
Gregers Wedell-Wedellsborg
CEO, phone +45 48 16 55 55

Per Johannesen Madsen
CFO, phone +45 48 16 55 55

Klaus Fridorf
Head of Communication, phone +45 61 20 19 97

Forward-looking statements
This interim report contains statements relating to the future, including statements regarding Matas Group’s future operating results, financial position, cash flows, business strategy and future targets. Such statements are based on Management’s reasonable expectations and forecasts at the time of release of this report. Forward-looking statements are subject to risks and uncertainties and a number of other factors, many of which are beyond Matas Group’s control. This may have the effect that actual results may differ significantly from the expectations expressed in the report. Without being exhaustive, such factors include general economic and commercial factors, including market and competitive conditions, supplier issues and financial and regulatory issues, IT failures as well as any effects of healthcare measures that are not specifically mentioned above.

Attachment

• 11_Matas_Q1_2023-24