Schustermann & Borenstein GmbH: S&B Group confirms clear revenue and earnings growth in 2017. The Group will present its 2017 consolidated financial statements in accordance with IFRS for the first time.
Schustermann & Borenstein Group confirms clear revenue and earnings growth in 2017
The Group will present its 2017 consolidated financial statements in accordance with IFRS for the first time
Munich, April 10, 2018 - Schustermann & Borenstein Group (S&B Group - bond issuer: PrestigeBidCo GmbH - ISIN: XS1533933039, XS1533933112), the leading off-price premium fashion retailer for members only, continues to show strong revenue and earnings growth in 2017.
As part of a more capital markets oriented financial reporting, S&B Group has converted the accounting from German GAAP to IFRS and will publish its consolidated financial statements for 2017 in accordance with IFRS for the first time. Going forward, the same will apply to the quarterly results.
In 2017 the S&B Group reported IFRS revenues of EUR 416.0 million, which represents a solid increase of 15.8% over the prior year period (FY 2016: EUR 359.3 million). The growth was driven by a thriving online business, complemented by a stable offline retail performance.
S&B Group's online segment, which is represented by the e-commerce business of our brand BestSecret, contributed 70% or EUR 289.3 million to the Group's revenue in 2017, recording 22% growth over prior year's figure of EUR 237.9 million. A compelling growth in the members base with very good performance in Germany and over proportional international growth were the main drivers of this increase. The offline segment, which is the traditional stationary business in our retail sites in Munich and Vienna, generated EUR 126.7 million or 30% of revenue in the current period, up 4% over the previous year's figure of EUR 121.4 million with very favorable growth in the Vienna store and a stable top line development in Germany.
Earnings before interest, taxes, depreciation and amortization before exceptional items (Adjusted EBITDA) according to IFRS of the S&B Group increased by 21.5% to EUR 77.5 million in 2017 (FY 2016: EUR 63.8 million). This development was mainly influenced by the underlying revenue growth, a stable gross margin as well as scaling effects in our operating costs. The Adjusted EBITDA margin improved from 17.7% in 2016 to 18.6% in the current period.
The Adjusted EBITDA is positively impacted by the transition from German GAAP to IFRS in the amount of EUR 7.5 million in 2017 and EUR 8.7 million in 2016. The major effect of this IFRS conversion is the capitalization of leased assets according to IFRS and therefore a reduction of rental expenses and a corresponding increase in asset depreciation and interest expenses, which does not effect the EBITDA.
S&B Group's net financial debt improved from EUR 320.0 million as of December 31, 2016 to EUR 291.7 million as of December 31, 2017, mainly due to the good operating performance. The corresponding leverage ratio, calculated as S&B Group's net financial debt to Adjusted EBITDA, improved to 3.8x at the end of 2017 from the prior year's figure of 5.0x.
The financial information in this press release is based on unaudited Group financial figures of PrestigeBidCo GmbH. The audited Group financial statements 2017 of PrestigeBidCo GmbH will be published on April 30, 2018. A conference call for investors and analysts will be held on the same day.
Investor Relations Contact Yara Kes Schustermann & Borenstein GmbH Margaretha-Ley-Ring 27 85609 Aschheim | Germany Phone: +49 89 242410 - 1205 Email: firstname.lastname@example.org
About S&B Group Founded in 1924 and headquartered in Munich, Schustermann & Borenstein is the leading members-only omni-channel fashion retailer in the off-price fashion retail market. With a strong focus on premium and luxury brands, the Group offers over 3,000 designer brands at attractive prices for men, women and children through online and offline sales channels. With its online brand "BestSecret", the company also has a presence in major European countries. The offline business includes three large-scale retail sites (two in Munich and one in Vienna) with a total net sales area of over 15,000 square meters. The Group has a workforce of around 1,600. The company is owned by funds managed by Permira and the Schustermann and Borenstein families. More information about the Schustermann & Borenstein Group can be found on the password protected Investor Relations website for investors and analysts.
This press release may contain forward-looking statements based on current assumptions and forecasts made by S&B Group Management and other information currently available to S&B. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. S&B does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to conform them to future events or developments.
10.04.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de