Hema results disappointing

All,

Hema with disappointing numbers this morning:

LfLs were positive in general. So far so good. Sales growth was primarily driven by hard goods.

The company refers to warm weather in the last two weeks of the quarter.

Sales to Dutch Franchisee’s were down vs our forecast (E-5m vs forecast), which had a direct effect on GP and Adj. EBITDA (each E-8m vs forecast).

Reported EBITDA is largely flat on last year, but that’s after fewer exceptional.

Like Takko, Hema blame the lower adjustments for the YoY drop in Adjusted EBITDA.

The company breaks out EBITDA headwinds into LfL Costs, LfL Cost Inflation and IFRS advisory. Otherwise the presentation does not discuss the shortfall.

Net cashflow was ultimately on par after drawing the RCF by E18m.

Wolfgang