Matas A/S: Matas Group - Interim Report Q1 2024/25

Company announcement no. 6 2024/25
Allerød, 14 August 2024

(1 April 2024 - 30 June 2024)

A good start to the year with continued profitable growth
Matas Group's strategy to Win the Nordics is progressing as planned and delivering as expected with proforma revenue growth of 6.2% and proforma growth in EBITDA before special items of 8.6% in Q1 2024/25.

• Matas Group generated total revenue of DKK 1,956 million in Q1 2024/25, corresponding to a year-on-year increase of 70% from DKK 1,150 million in Q1 2023/24 when the Group did not own KICKS. Group proforma growth was 6.2% and currency neutral growth came to 6.1%.
• Organic growth in Matas in Q1 2024/25 was 8%. KICKS grew 2.9% currency neutral, with growth both in stores and online. Growth in KICKS was impacted by the continued integration of Skincity and ramp-up of volumes in the logistic center, but growth picked up in the later part of the quarter. KICKS excluding Skincity grew 6.9% currency neutral.
• The gross margin for Q1 2024/25 was 46.1%, up from 45.4% (45.6% proforma) in the year-earlier-period due to mix and higher subsidies from suppliers.
• EBITDA before special items came to DKK 293 million, corresponding to an EBITDA before special items margin of 15.0%, which is in line with guidance, against 17.5% (14.7% proforma) last year. The EBITDA before special items in Q1 last year amounted to DKK 201 million (proforma DKK 270 million). Special items were DKK 17 million, relating to integration costs and Matas' 75-year celebration (Q1 2023/24: DKK 21 million).
• Profit for the period after tax amounted to DKK 59 million compared to DKK 49 million (proforma DKK 43 million) last year.
• Free cash flow was an inflow of DKK 32 million in Q1 2024/25 compared with an inflow of DKK 201 million in Q1 2023/24, primarily reflecting investments in Matas Logistics Center.
• Matas Group maintain its guidance for the financial year 2024/25. Group revenue is expected to grow between 4% and 7% currency neutral, ~3.2% to 6.2% exchange rate adjusted, from the proforma revenue for 2023/24 of DKK 7.8 billion. The EBITDA margin before special items in 2024/25 is expected to be in the range of 14.5% and 15.5% (from proforma base of 14.3% in 2023/24). Investments, excluding M&A, are expected to be DKK ~650 million, including approximately DKK 325 million for Matas Logistics Center. Please see company announcement no. 1 2024/25 for assumptions related to the guidance.

Gregers Wedell-Wedellsborg, Group CEO of Matas A/S:
"We have had a good start to the year with growth in underlying sales and earnings. Our strategy to Win the Nordics is progressing as planned, with continued assortment expansion, faster delivery, store upgrades and membership growth. At the same time, we continue to see gains from being a Nordic group. Operations in our new automated KICKS logistics center improved through the quarter and construction of Matas Logistics Center is on plan. We maintain our guidance for the financial year."

Key figures and ratios

	Q1 2024/25	Q1 2023/24	Growth (%)	Proforma Q1 2023/24	Proforma Growth (%)
Key figures (DKKm)
Revenue	1,956	1,150	70.1	1,841	6.2
Gross profit	903	522	72.8	839	7.6
EBITDA before special items	293	201	46.0	270	8.6
Profit after tax	59	49	20.8	43	37.7
Free cash flow	32	201
Ratios
Organic growth	8.0%	9.2%
Gross margin	46.1%	45.4%		45.6%
EBITDA margin before special items	15.0%	17.5%		14.7%
Net interest-bearing debt/ EBITDA before special items	2.9	1.8

Proforma numbers illustrate Matas Group had the Group owned KICKS in Q1 2023/24.

Q1 2024/25 highlights

• Matas Group's strategy to Win the Nordics is delivering as expected with proforma revenue growth of 6.2% and proforma EBITDA before special items growth of 8.6%.
• Organic growth in Matas in Q1 2024/25 was 8%. Organic growth online was 21% and stores grew 3%. KICKS grew 2.9% currency neutral. Growth picked up in the later part of the quarter. KICKS excluding Skincity grew 6.9% currency neutral, and KICKS online excluding Skincity grew 20.5% and stores grew 3.2%.
• Customer traffic was strong, and the organic number of transactions increased by 2.1% to 6.1 million, and the organic average basket size grew by 5.9% to DKK 199 per transaction compared to Q1 last year.
• Gross profit for Q1 2024/25 amounted to DKK 903 million, up from DKK 522 million in Q1 2023/24 (proforma gross profit in Q1 2023/24 amounted to DKK 839 million). The gross margin was 46.1%, up from 45.4% (45.6% proforma) in Q1 2023/24 due to mix and higher subsidies from suppliers.
• Other external costs amounted to DKK 216 million in Q1 2024/25, up from DKK 107 million in Q1 2023/24, driven by the KICKS acquisition and increased online sales.
• Q1 2024/25 staff costs amounted to DKK 399 million, up from DKK 215 million in Q1 2023/24 driven by the KICKS acquisition and increased online sales.
• Special items amounted to DKK 17 million in Q1 2024/25, compared to DKK 21 million in Q1 2023/24.
• EBITDA before special items came to DKK 293 million in Q1 2024/25 compared to DKK 201 million last year (proforma DKK 270 million), and the EBITDA margin before special items was 15.0% in the quarter against 17.5% (14.7% proforma) last year.
• The total depreciation, amortisation and impairment charges amounted to DKK 158 million in Q1 2024/25, up by DKK 67 million and mainly attributable to the acquisition of KICKS.
• Profit for the period amounted to DKK 59 million after tax compared to DKK 49 million last year (proforma DKK 43 million). The increase reflects the continued growth of Matas Group and the improved gross margin.
• Free cash flow was an inflow of DKK 32 million in Q1 2024/25 compared with an inflow of DKK 201 million in Q1 2023/24, primarily reflecting investments in Matas Logistics Center and partly due to timing effects.
  

Video conference
Matas Group will host a video conference regarding Q1 2024/25 results for investors and analysts on Wednesday, 14 August at 10:00 a.m. CEST. The video conference and the presentation can be accessed from Matas Groups' investor website:

https://matas-events.eventcdn.net/events/q1-report-2024

Video conference access numbers for investors and analysts:

DK: [phone]

SE: [phone]

NO: [phone]

UK: [phone]

US: [phone]

PIN for all countries: 915912

Contacts
John Bäckman
Head of Investor Relations & Treasury, phone [phone]

Kristine Ahrensbach
Head of Corporate Communication, phone [phone]

Forward-looking statements
The 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.

About Matas Group
Matas Group is the Nordic leader in beauty and wellbeing, consisting of the banners Matas, KICKS and Skincity. With almost 500 stores and leading web shops across Denmark, Sweden, Norway, and Finland, we are the leading omnichannel player offering a curated portfolio of third party brands, own brands and an emphasis on personal and expert advisory and service excellence. We have more than 5 million loyalty members across the Nordics. Matas Group is listed on Nasdaq OMX Copenhagen.