Organic growth in the first half of 2010 was 8.2% (excluding Intimacy). Given the low economic growth in Europe and the USA, Van de Velde is very satisfied with that development and thanks its customers and consumers for their trust. Every country worldwide posted growth. Growth in the USA and Canada was most impressive, but the European core markets also posted strong growth figures.
Turnover growth is mainly driven by a strong rise in volume. Exchange rates (versus €) had a positive impact of a little over 1%.
On a store-to-store basis, turnover grew somewhat at our own ‘Lingerie Styling’ stores (seven in Europe). The German stores were converted to the new Oreia concept.
Sarda turnover continued to decrease in the first half of 2010, but there is a clear swing in the second half of the year, compared with the second half of 2009. The initial signs from the first half of 2011 appeared to confirm this swing.
The cost savings implemented in 2009 (Barcelona, Hungary) boosted the gross margin. All other costs were fairly steady, including all costs that promote growth (marketing, sales programmes, prospecting in new zones).
As a result of the above, EBITDA (excluding Intimacy) rose by 24.7%. Net profit (excluding Intimacy) grew by 39.3%. Non-recurring restructuring costs and a write-off on the CDO portfolio did have a negative impact on the 2009 figures, which was not the case in 2010. When these factors are excluded, REBITDA (recurring EBITDA) grew by almost 19%.
Top Form contributed positively to the net profit. Intimacy was fully consolidated as of the end of April 2010 after the acquisition of the controlling interest.
The financial result also made a positive contribution to the net profit, in contrast to previous year.
The growth of Intimacy is on schedule. Expected turnover for the full year 2010 is around $38m, with EBITDA of $2.1m (which will not be included in Van de Velde’s consolidated figures before 1 May 2010). Four new stores will open in 2010 (two in Los Angeles and environs in June and two in the autumn), which will bring the total number of stores to 13 by the end of 2010. The goal is to have at least 20 stores in the United States by the end of 2012.
The market share of our brands (Marie Jo and PrimaDonna) in the Intimacy stores continues to grow.
The recognition of Intimacy in Van de Velde’s consolidated figures is explained in detail in the interim financial report. The main points of this consolidation are as follows:
Turnover will continue to grow in the second half of 2010, albeit at a slightly slower pace than in the first half of the year. Management expects that year-on-year turnover growth (excluding Intimacy) will exceed 5%. Profitability for 2010 will remain healthy and Van de Velde targets EBITDA (excluding Intimacy) of about €49m for the full year 2010.
The initial signs for turnover growth in 2011 are rather positive, although it is obviously too early to make any result-related forecasts.
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. A number of key figures are presented below and explained more fully in the financial report:
(1) Figures including full consolidation of Intimacy as of end of April 2010. (2) REBITDA equals EBITDA for 2010. For 2009 the difference between REBITDA and EBIDTA is equal to the one-off cost for the closure of in Hungary (€1.1m). (3) EBITDA equals operational profit plus depreciation and amortisation.
For more information contact:
Van de Velde NV – Lageweg 4 – 9260 Schellebelle – 09 365 2100 www.vandevelde.eu
Ignace Van Doorselaere Chief Executive Officer
Stefaan Vandamme Chief Financial Officer
Van de Velde NV is a leading player in the luxury and fashionable women’s lingerie sector. Van de Velde is convinced of a long-term strategy based on expanding and developing brands around the Lingerie Styling concept (fit, style and fashion), especially in Europe and North America.