2017: Increased sales and profit; CALIDA GROUP outperforms the market – Strong growth in online trading Montag, 05. März 2018 - 07:00

Though the operating environment remained difficult in its target markets, CALIDA GROUP outperformed the market in the 2017 financial year. All the key financial figures moved in the right direction. Net sales went up 2.6 percent year-on-year to CHF 380.6 million, while operating profit (EBIT) increased 18.0 percent to CHF 21.6 million, and net income improved 14.3 percent to CHF 16.9 million. The restructuring measures initiated for certain segments in the previous year were completed successfully during the period under review, and have already had a positive effect on profitability.

“The most important developments during the year under review included the good progress made on integrating e-commerce specialist REICH ONLINE, the strong growth in our online trade, double-digit growth in CALIDA’s menswear business, the successful modernisation of the CALIDA brand, the improved profitability of MILLET MOUNTAIN GROUP, good export growth at luxury lingerie brand AUBADE, and the positive performance of the OXBOW brand, where sales are growing again,” says Reiner Pichler, CEO of CALIDA GROUP. “Thanks to the realignment of corporate strategy, our business model, which is centred on a risk-balanced portfolio of strong, operationally autonomous brands in the apparel, sports/outdoor and furniture sectors, proved its worth.”

Good financial result

Despite difficult markets and substantial investments in the individual brands, operating results improved significantly year-on-year.

Consolidated net sales went up from CHF 370.9 million to CHF 380.6 million during the period under review, an increase of 2.6 percent.

Operating profit (EBIT) went up 18.0 percent from CHF 18.3 million to CHF 21.6 million. The return on sales improved from 4.9 percent to 5.7 percent.

CALIDA GROUP made substantial investments in the integration of REICH ONLINE, which was acquired on 1 March 2017. It also invested in the further development of e-commerce and in digitalisation. The resulting additional costs had a negative effect on operating results for the year under review. By pushing the development of online business so hard, the Group was able to more than double sales made through its own e-commerce operations in 2017. These accounted for 8.2 percent of total sales, up from 3.6 percent in the prior year.

Pre-tax profit increased by a disproportionate 19.1 percent from CHF 18.1 million to CHF 21.5 million. Currency effects also had a positive impact on this figure. Net income went up 14.3 percent from CHF 14.8 million to CHF 16.9 million.

Thanks to a strong focus on managing net working capital, cash flow from operating activities rose from CHF 23.6 million in the previous year, to CHF 31.0 million. Net liquidity also went up, despite the acquisition of REICH ONLINE, from CHF 26.2 million to CHF 32.3 million.

The equity ratio improved slightly, from 61.9 percent to 62.6 percent. Group headcount remained practically unchanged during the year under review at 2,936.

Unchanged dividend

The Board of Directors is proposing to the General Meeting of 18 May 2018 that it pay an unchanged dividend of CHF 0.80 per share out of reserves from capital contributions.

Risk-balanced brand portfolio

The CALIDA brand bucked the general retail trend by growing 2.4 percent and increasing net sales to CHF 133.8 million. The brand has a retail network of more than 130 stores. It still generates more than 40 percent of its sales in Switzerland. Despite investments in modernising the brand, its contribution to operating profit went up to CHF 36.2 million.

Legendary French brand AUBADE has now maintained its excellent positioning in the uppermost segment of the lingerie market for 60 years. In 2017, its net sales increased by 3.7 percent to EUR 55.5 million, and its contribution to profit went up by 8.0 percent to EUR 14.0 million.

Further restructuring measures were needed at MILLET MOUNTAIN GROUP to create a solid basis for growth; these included a reduction in sales organisations and investments. As a result, sales were down 6.4 percent to EUR 95.7 million. After adjusting for restructuring and currency effects, net sales increased by 0.8 percent. The division’s contribution to operating profit increased by 6.3 percent to EUR 21.5 million thanks to an improved gross margin, as well as to cost optimisations and restructuring measures.

LAFUMA MOBILIER, which manufactures and sells outdoor furniture, was once again the most profitable division in CALIDA GROUP during the year under review. Based on this growth potential, the Group continues to invest in a clear internationalisation strategy and the cultivation of new market segments. Net sales fell slightly by 1.1 percent to EUR 38.0 million. Owing to the investments made, the division’s profit contribution was down 7.5 percent to EUR 10.7 million.

Surf and lifestyle brand OXBOW was stabilised during year under review. Net sales went up 6.0 percent to EUR 26.8 million and its contribution to operating profit rose 14.2 percent to EUR 5.8 million.

New candidate for Board of Directors

Jean-Paul Rigaudeau, Member of the Board of Directors of CALIDA GROUP since April 2016, has decided for personal reasons not stand for re-election to the Board at the 2018 Annual General Meeting. The Board of Directors and Management would like to thank Jean-Paul Rigaudeau for all he has done.

The Board of Directors proposes to the shareholders to elect Nathalie Gaveau in his place. 42-year-old Nathalie Gaveau is a French national and a graduate of the leading management and business school HEC Paris, where she currently serves as a member of the Supervisory Board. She is married with two children.

Even from a young age, Nathalie Gaveau applied her great entrepreneurial drive, working with partners to set up online marketing start-ups and later selling them successfully. She currently manages Shopcade, an online sales platform for international brands including Topshop, The Body Shop and Hugo Boss. She has spent several years working in various Asian countries, as well as in London. She has wide-ranging international experience and digital expertise. As a candidate for the Board of Directors, she brings exactly the skills CALIDA GROUP needs to further its digital transformation (Link: CV_Nathalie Gaveau_pdf).

Outlook

In 2018, CALIDA GROUP will continue to make substantial investments in developing its brands and in the targeted push towards digitalization. Economic conditions in our segments and markets remain a challenge, so we expect stable growth in sales and profitability.

The 2017 Annual Report is available on the website at

http://www.calidagroup.com/investors/financial-reports

Sursee (Switzerland), 5 March 2018

Further information:

CALIDA Holding AG

Reiner Pichler, CEO

Tel.: +41 41 925 44 49

yvonne.baettig@calida.com