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2nd September 2013, Schellebelle

Van De Velde expects better second half

Van de Velde, the producer of luxury lingerie, has reported  a decrease in its consolidated turnover by 1.8% from EUR 98.7million for the first half 2013. On a comparable basis  consolidated turnover fell by 2.5%.

The company’s net profit amounted EUR 19.7 million, which entails a fall of 12.7% compared with the same period last year (€22.6m).

The company expects performance in the second half of 2013 to be better than in the first half of the year, with a slight rise in wholesale turnover.

The company expects better development in the second half of the year as it reports a very positive reception for the launch of its new bathing wear line within PrimaDonna.

Results

The company explains this negative development by several factors, such as a fall in wholesale turnover by 2%, which resulted in a tough spring for the independent retailers in most European countries.

Another factor, outlined by Van de Velde, is a fall in the retail turnover of intimacy of slightly over 11%.

However, there has been an increase in retail turnover of Rigby & Peller on the European continent by  14% because of the strong store-to-store growth in Germany (9%) and a number of new stores in Cologne, Munich and Copenhagen.

An increase in the retail turnover at Rigby & Peller in the UK of 2.1%, on the other hand, has resulted in a decrease of 1.5% in EUR, due to a weaker British pound. The retail turnover at the Donker stores for the period April-June 2013 contributed an amount of EUR 1.3 million.

Recurring EBITDA developments

Recurring EBITDA for the first half year amounted EUR 28.4 million, which is about 9.4% lower than in the same period last year.

On a comparable basis the decrease was around 8.9% due to a fall in wholesale turnover combined with a slightly lower gross margin compared with last year, a decrease in the EBITDA contribution of intimacy and a rise in costs.

Financial result

On a like-for-like basis the financial result was about the same compared to the same period last year.

However, an exceptional result of EUR 2.9 million was recognised in the first half year of 2012 as a consequence of a revision of the price paid for a 35.1% shareholding in Intimacy.

In the first half year of 2013 this revision resulted in profit of EUR 0.9 million.

Prospects

The company expects performance in the second half of 2013 to be better than in the first half of the year, with a slight rise in wholesale turnover.

Van de Velde also expects slight growth in recurring EBITDA in the second half of the year, but doesn’t believe this will offset the fall in recurring EBITDA in the first half of the year.

www.vandevelde.eu

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