PRESS RELEASE

Fourlis Group Consolidated Financial Results for the First Half of 2023

Strong double digit revenue growth

Delivering substantial EBITDA (OPR) and EBIT growth on the back of operating leverage

The Group is well positioned for further future growth and value creation

An additional value creation catalyst, Trade Estates IPO, is approaching

Athens, Greece - September 5, 2023 -FOURLIS HOLDINGS S.A. (Bloomberg: FOYRK:GA - Reuters: FRLr.AT - ISIN: GRS096003009) announces its H1 2023 financial results.

H1 2023 key Financial Highlights

  • Fourlis Group revenue increased significantly by 16% during H1 '23 vs H1 '22 amounting to € 246.7 mil. from €212.6 mil in the same period of last year.
  • On a like-for-like basis, i.e. excluding Intersport Turkey and TAF sales, Group revenue during H1 '23 was up by
    20% yoy.
  • Solid Gross Profit margin at 45.6% in H1 '23, at a similar level compared to H1 '22.
  • Remarkable EBITDA (OPR) growth of 76.1% reaching €17.1 mil. compared to €9.7 mil. in the respective period of last year.
  • EBIT increased significantly by 39.2% during H1 '23 at €10.9 mil. from € 7.8 mil. in H1 '22.
  • The Net Debt of the Group's retail activities stood at € 110.3 mil. during H1 '23 reduced compared to € 123.5 mil. in H1 '22, while the Net Debt related to Trade Estates REIC amounted to € 119.3 mil. in H1 '23 from € 89 mil. in H1 '22 and € 98.8 mil., driven by new investments.
    The Group's H1 2023 financial results underline the resilience of its business model and the successful implementation of its transformative strategic plan. Our strategic initiatives, investments and commitment to quality and exceptional customer service and experience, position us to capitalize on emerging opportunities for sustainable growth and value creation.
    Within H1 2023, we continued to modernize and expand the Group's retail network across its geographical territory, while our investments behind enhancing our capabilities in logistics, omnichannel operations and digitalization, strengthened further our presence in the market.
    At the same time, we are preparing for the initial public offering (IPO) of Trade Estates REIC, our real estate investment company. This strategic decision is set to unlock additional value for our retail activities, further fuelling our growth trajectory.
    The strong performance of our retail business activities has paved the way for the commencement of operating leverage. This operational efficiency, combined with favorable economic prospects, will drive profitability and create substantial value for our stakeholders.

FOURLIS GROUP

Fourlis Holdings S.A.

HEAD OFFICE:

Tel.: +30 210 6293000,

18-20 Sorou Str., Building A,

Fax: +30 210 6293205,

15125 Maroussi

E-mail:info@fourlis.gr

Athens, Greece

Key Financial Figures

(amounts in € mil.)

H1 '22

%

H1 ' 23

Revenue

212.6

16.0%

246.7

Gross Profit

96.9

16.0%

112.4

Gross Profit margin

45.6%

45.6%

EBITDA (OPR) *

9.7

76.1%

17.1

EBITDA (OPR) margin

4.6%

6.9%

Inv.Assets (TE) revaluation

5.0

1.3

EBIT

7.8

39.2%

10.9

EBIT margin

3.7%

4.4%

PBT

1.2

66.7%

2.1

PBT margin

0.6%

0.8%

Profit After Tax

2.5

-30.3%

1.8

PAT margin

1.2%

0.7%

Minority interest

0.0

-0.5

Net Profit

2.5

-48.6%

1.3

Net Profit margin

1.2%

0.5%

*Alternative Performance Measure, as defined in the Interim Report of the Board of Directors for the period 1/1-30/06/2023.

The Group's revenue amounted to € 246.7 mil. in H1 '23 from 212.6 mil. in H1 '22, increased by 16% yoy. The sales growth is supported by both the Retail Home Furnishings activity (RHF) and the Retail Sporting Goods activity (RSG) and is, to a large extent, attributed to volume growth.

In the beginning of 2023, the Group's new retail activity in Health & Wellness was activated, through 3 new Holland & Barrett stores in Athens and its e-commerce channel has recently been set up.

It is noted that excluding sales from the disposed businesses "The Athlete's Foot" and "Intersport Turkey",

Group revenues during H1 '23 were up by 20%.

On a like-for-like basis, the Group's revenue from Greece during H1 '23, that represented 58.5%, increased by 21.6% yoy, while revenue from the Group's international activities presented a growth of 18.7% yoy.

The Group's e-commercesales during H1 '23 represented c. 14% of total Group revenue, while the expansion of ecommerce contribution to total Group's revenue constitutes a strategic pillar of the Group's growth strategy.

The Group's Gross Profit reached 112.4 mil in H1 '23 from 96.9 mil. in H1 '22, with the Group's Gross Profit margin at 45.6% in H1 '23, stable compared to last year's respective period, having posted a significant improvement within Q2 of 2023 in the RSG activity.

Group EBITDA (OPR) was significantly increased by 76.1% reaching € 17.1 mil. during H1 '23 from €9.7 mil. in H1 '22, mainly driven by operating leverage across the Group as well as stabilizing inflationary pressures. EBITDA (OPR) margin increased to 6.9% in H1 '23 from 4.6% in H1 '22.

Group EBIT stood at € 10.9 mil. in H1 '23 from € 7.8 mil. in H1 '22, up by 39.2%, while EBIT margin reached 4.4% from 3.7%.

The Group's EBIT within H1 '23 includes € 1.3 mil. of asset revaluation gains relating to the Trade Estates REIC compared to €5 mil. included in the respective period of last year.

FOURLIS GROUP

Fourlis Holdings S.A.

HEAD OFFICE:

Tel.: +30 210 6293000,

18-20 Sorou Str., Building A,

Fax: +30 210 6293205,

15125 Maroussi

E-mail:info@fourlis.gr

Athens, Greece

Group Profit Before Tax was up by 66.7% reaching € 2.1 mil. compared to € 1.2 mil. in the respective period of last year, despite higher interest expenses on the back of rising interest rates.

Group Profit After Tax reached € 1.8 mil. in H1 '23 compared to € 2.5 mil. in H1 '22, while the Net Profit margin stood at 0.7% in H1 '23 from 1.2% in H1 '22.

Balance Sheet and Cashflow Highlights

The Group is committed towards creating sustainable cashflow generation and returning value to its shareholders. Within H1 2023 the Group paid a dividend of 0.11 euros per share for the fiscal year of 2022, amounting to € 6 mil., which corresponds to a 30% dividend payout ratio.

The Group's Gross debt during H1 '23 reached € 284 mil. from € 262 mil. in FY '22, largely attributed to the Trade Estates REIC new investments. The gross debt relating to Trade Estates REIC amounted to € 133.6 mil. in H1 '23 from € 113.3 mil. in FY '22.

The Net Debt of the Group's retail activities reduced during H1 '23 compared to Η1 '22, reaching € 110.3 mil. in H1 '23 from €123.5 mil. in H1 '22, while the Net Debt related to Trade Estates REIC amounted to € 119.3 mil. in H1 '23 from € 89 mil. in H1 '22 and € 98.8 mil. in FY '22, driven by new investments.

The Group's Capex during H1' 23 stood at € 21.7 mil., with €16.1 mil. attributed to the investments of Trade Estates REIC, while the capex of Group's retail activities amounted to € 5.8 mil.

BALANCE SHEET (€ MIL.)

FY '22

%

H1 ' 23

Property, plant & equipment

73.3

-5.8%

69.1

Right of Use Assets

133.9

2.2%

136.8

Other Non Current Assets

53.3

10.3%

58.8

Non-current assets

260.5

1.6%

264.7

Inventories

91.8

3.9%

95.3

Trade Receivables

4.3

-17.3%

3.6

Other receivables

19.2

52.0%

29.2

Cash & Cash Equivalent

58.4

-6.2%

54.8

Assets Held for Sale

317.8

3.8%

330.0

Current assets

491.6

4.3%

512.9

Total Assets

752.1

3.4%

777.5

Loans and Borrowings

103.8

-20.0%

83.2

Long Term Lease Liability

111.6

1.5%

113.1

Other non-current liabilities

9.2

6.4%

9.8

Non-current liabilities

224.6

-8.2%

206.1

Loans and Borrowings

44.6

51.2%

67.6

Short Term Lease Liability

31.7

14.5%

36.3

Account Payables & other current liabilities

104.2

4.5%

108.9

Loans and Borrowings of Assets Held for sale

113.3

17.9%

133.6

Liability of Assets Held for Sale

32.6

-39.3%

19.8

Current liabilities

326.4

12.2%

366.2

Shareholders Equity

201.1

2.1%

205.3

Shareholders Equity & Liabilities

752.1

3.4%

777.5

NET DEBT

H1 '22

FY '22

H1 ' 23

Trade Estates Gross Debt

112.0

113.3

133.6

Trade Estates Cash & Cash equivalents

23.0

14.5

14.3

Trade Estates Net debt

89.0

98.8

119.3

Retail Gross debt

175.4

148.5

150.8

Retail cash & cash equivalents

51.9

46.0

40.5

Retail Net debt

123.5

102.5

110.3

Group Net debt

212.5

201.3

229.6

FOURLIS GROUP

Fourlis Holdings S.A.

HEAD OFFICE:

Tel.: +30 210 6293000,

18-20 Sorou Str., Building A,

Fax: +30 210 6293205,

15125 Maroussi

E-mail:info@fourlis.gr

Athens, Greece

Analysis per Segment

Retail Home Furnishing and Accessories activity (IKEA)

(amounts in € mil.)

H1 '22

%

H1 ' 23

Revenue

131.6

24.4%

163.8

Gross Profit

58.3

28.8%

75.1

Gross Profit margin

44.3%

45.9%

EBITDA (OPR) *

7.2

114.3%

15.4

EBITDA (OPR) margin

5.5%

9.4%

Inv.Assets (TE) revaluation

5.0

1.3

EBIT

8.6

49.1%

12.8

EBIT margin

6.5%

7.8%

*Alternative Performance Measure, as defined in the Interim Report of the Board of Directors for the period 1/1-30/06/2023.

Retail Home Furnishings (RHF) financial results during H1 '23 highlight IKEAs' leading position in the market across the Group's region of activity.

RHF revenue increased significantly by 24.4% during H1 '23 reaching € 163.8 mil. in H1 '23 compared to € 131.6 mil. in H1 '22. The revenue growth was supported by both volume and value, on the back of IKEA's leading position, improving market trends, normalizing supply chain distortion, as well as a positive economic outlook. Revenue of IKEA in Greece, representing 58% of RHF revenues, increased by 22.6% during H1 '23 vs the same period of last year, while revenue of IKEA from its International markets, increased by 27% yoy in H1 '23.

Increased revenue combined with a solid Gross Profit margin and operating leverage, resulted in significant improvement in RHF profitability.

Therefore:

RHF EBITDA(OPR) in H1 '23 increased by 114.3% at €15.4 mil. compared to €7.2 mil. in H1 '22, with the EBITDA(OPR) margin reaching 9.4% in H1 '23 from 5.5% in the respective previous year period, and RHF EBIT in H1 '23 increased by 49.1% at €12.8 mil. From €8.6 mil. in H1 '22, with the EBIT margin reaching 7.8% in H1 '23 from 6.5% in H1 '22.

It is noted that the EBIT of the Retail Home Furnishings activity includes € 1.3 mil. from revaluation of assets, compared to € 5 mil. eur included in H1 '22.

The Group's Retail Home Furnishings activity today operates 20 IKEA stores in total (in Greece, Bulgaria and Cyprus) of different sizes. Furthermore, 3 new IKEA stores in Greece are either under construction or under design process, while the Group aims to start their operation in the next 1-3 years.

FOURLIS GROUP

Fourlis Holdings S.A.

HEAD OFFICE:

Tel.: +30 210 6293000,

18-20 Sorou Str., Building A,

Fax: +30 210 6293205,

15125 Maroussi

E-mail:info@fourlis.gr

Athens, Greece

Retail Sporting Goods activity (INTERSPORT)

(amounts in € mil.)

H1 '22

%

H1 ' 23

Revenue

81.2

2.0%

82.8

Gross Profit

38.7

-3.7%

37.3

Gross Profit margin

47.7%

45.0%

EBITDA (OPR)

3.8

0.8%

3.8

EBITDA (OPR) margin

4.7%

4.6%

EBIT

0.6

-35.4%

0.4

EBIT margin

0.8%

0.5%

*Alternative Performance Measure, as defined in the Interim Report of the Board of Directors for the period 1/1-30/06/2023.

Retail Sporting Goods (RSG) revenue during H1 '23 amounted to €82.8 mil. from €81.2 mil. in H1 '22, up by 2%. Excluding revenue from "The Athlete's Foot" and "Intersport Turkey", activities that were disposed, RSG revenue was up by 13% during H1 '23 compared to the same period of last year.

On a like-for-like basis, RSG revenue in Greece, that represents 60% of RSG revenues, increased by 19.8% during H1 '23 vs the same period of last year, while RSG revenue from its international markets, increased by 4% yoy in H1 '23.

The revenue growth is a result of initiatives and investments undertaken by the management with the aim to further improve customer service and experience and further build its product portfolio. In particular, the Group has by now completed the majority of its store network renovation towards a more modernized and digitalized concept and has also completed its investment behind its logistics capacity that supports its ecommerce and omnichannel approach. Moreover, its product portfolio is supported by the Group's strong partnerships with leading companies in the sports industry, like Nike and Adidas.

Even though during the first quarter of 2023 RSG profitability was influenced by higher promotional initiatives on the back of irregular weather conditions, thus leading to a pressure on the Gross Profit margin during the first quarter, there was a significant improvement during the second quarter of 2023, from 41.9% in Q1 '23 to 47.9% in Q2 '23, leading to 45% GPM in H1 '23.

Therefore:

RSG EBITDA(OPR) in H1 '23 reached € 3.8 mil., close to last year's first half level, with the EBITDA(OPR) margin at 4.6% in H1 '23 from 4.7% in the respective previous year period, and RSG EBIT in H1 '23 stood at €0.4 mil. from €0.6 mil. in H1 '22, with the EBIT margin reaching 0.5% in H1 '23 from 0.8% in H1 '22.

The Group's Retail Sporting Goods activity today operates a network of 107 Intersport stores, namely 59 stores in Greece, 32 in Romania, 10 in Bulgaria and 6 in Cyprus. The upgrading program of Intersport's store network is almost complete and is expected to conclude within 2023.

FOURLIS GROUP

Fourlis Holdings S.A.

HEAD OFFICE:

Tel.: +30 210 6293000,

18-20 Sorou Str., Building A,

Fax: +30 210 6293205,

15125 Maroussi

E-mail:info@fourlis.gr

Athens, Greece

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Fourlis SA published this content on 05 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 September 2023 14:04:04 UTC.