Van de Velde: positive results tarnished by Intimacy
Van de Velde had a good year in 2014, but it still can’t ignore a certain stain on its results. Having announced a few weeks ago that it was ending its 2014 fiscal year with an 8.7% increase in revenues at 198.4 million euros, the Belgian lingerie group (PrimaDonna, Marie Jo, Andres Sarda) has just released its results and outlook for 2015.
Its EBITDA increased significantly in 2014, from 47 to 57.7 million euros, an increase of 22.8%. This positive momentum continued with recurring profits of 33.9 million euros, up 3.2% excluding impairment/non-recurring restructuring costs.
Recurring net profits were, however, negatively impacted by impairment on Intimacy, the US multibrand retail chain it acquired in 2010. Impairment charges rose to about 31 million. The amount was recognized as an expense, and therefore officially brought down its net profit to 2.5 million euros. While the group's brands saw a rise in their wholesale business and its European retailers Rigby & Peller and Linchérie saw a higher turnover, it was only Intimacy that has penalized the group's results.
For 2015, it seems that the major theme has been the group’s inability to bring Intimacy up to snuff since its acquisition. Worse, the company is being somewhat dragged down with a negative REBITDA for the first time in 2014. Resolving this negative cash flow problem will be one of Van de Velde major objectives, even without the official announcement.
As for its other constituents, the group expects further wholesale growth for its brands in the first half, as well as growth for its retail segment in Germany, the Netherlands and, to a lesser extent, in the UK.
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