SLEEPZ AG publishes 2017 half-year report
SLEEPZ AG publishes 2017 half-year report
SLEEPZ AG (ISIN DE000A2E3772 - "SLEEPZ"), a group of companies focusing on online commerce in the sleep products segment, is publishing its 2017 half-year report today. The business performance and results for the first half of 2017 were affected firstly by the company's tight liquidity position in the first few months and the associated cost reductions, particularly in marketing, and secondly by the structural measures implemented. The capital increases performed in May and June with gross cash inflows totalling EUR 2 million then enabled business to grow again at the end of the first half of the year. Accordingly, SLEEPZ expects business to recover significantly in the second half of the year. In the first half of 2017, consolidated sales of EUR 5.9 million were generated after EUR 7.7 million in the same period of the previous year. Despite the decline in sales, SLEEPZ kept its consolidated earnings stable year-on-year at minus EUR 2.2 million as a result of the cost reductions introduced. Of these consolidated earnings, minus EUR 754 thousand is attributable to the discontinued operation incorporating the former venture capital business. The gross profit of EUR 1.9 million (previous year: EUR 2.4 million) and particularly the EBITDA of minus EUR 1.2 million (previous year: minus EUR 1.0 million) were down only slightly year-on-year due to an improved cost of materials ratio of 67.8% (previous year: 69.5%).
As a result of the capital increases described above, the consolidated balance sheet improved substantially over the course of the first half of 2017. In addition, the sale of the remaining venture capital residual portfolio at the end of June 2017 also had a positive impact on the consolidated balance sheet. Cash in hand and bank balances consequently increased from EUR 0.8 million as at 31 December 2016 to EUR 2.2 million as at 30 June 2017. In the same period, financial liabilities decreased by around EUR 4.3 million from EUR 7.7 million to EUR 3.4 million. The equity ratio came to 67.9% as at 30 June 2017 after 49.5% as at 31 December 2016.
SLEEPZ anticipates a significant increase in sales in the next few quarters as a result of the Grafenfels mattress range. In its latest product test, Stiftung Warentest put the "Grafenfels WEISS" mattress in joint second place with the grade "GOOD". With regard to the most important criterion for customers, the mattress's lying characteristics, it was judged the best in the test with a rating of 2.1. Based on past experience, Stiftung Warentest's assessment has a strong influence on consumers' purchasing decisions.
"Implementing all of the extensive one-off events in the first half of 2017 demanded a lot of our resources. It is still possible to achieve our sales target of EUR 18 million, but this will be a real challenge. Overall, we expect earnings to remain slightly negative at the level of the subsidiaries in 2017," explains Oliver Borrmann, Executive Board member of SLEEPZ, adding: "However, this will also depend on the implementation of further structural measures and the development of our major operational projects aimed at enabling strong growth as early as 2017, but primarily in 2018."
In addition to a potential investment in Cubitabo, which also operates an online business in the sleep products segment with www.bettenriese.de, SLEEPZ is still looking into full integration of its subsidiaries, including in exchange for the issue of shares.
The half-year report will be published at www.sleepz.com on 15 September 2017.
About SLEEPZ AG: SLEEPZ AG is an e-commerce group focussed on the segment of sleep products (bedroom furniture, beds, slatted frames, mattresses, bedding, accessories). Its subsidiaries sleepz home GmbH, Matratzen Union GmbH, Ecom Union GmbH and Markenschlaf GmbH run online shops in the segment of sleep products, including www.perfekt-schlafen.de , www.markenschlaf.de , www.schlafnett.de , www.matratzenunion.de , www.schlafhandel.de , www.onletto.de , www.schoene-traeume.de and www.matratzendiscount.de . Furthermore Grafenfels Manufaktur GmbH has developed its own mattress collection under the brand name "Grafenfels". The group also has showrooms in Berlin and Wolfhagen.
SLEEPZ AG Corinna Riewe Investor Relations Tel. +email@example.com
15.09.2017 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.deLanguage: English Company: SLEEPZ AG Schlüterstraße 38 10629 Berlin
Germany Phone: +49 (0)30 20 305-0 Fax: +49 (0)30 20 305-555 E-mail: firstname.lastname@example.org Internet: www.sleepz.com ISIN: DE000A2E3772, DE000A2E4L59 WKN: A2E377, A2E4L5 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Stuttgart, Tradegate Exchange; Warschau End of News DGAP News Service