Hema Q2 sales decline by 0.2 percent

Second quarter net sales at Hema B.V. decreased by 0.5 million euros (0.59 million dollars) or 0.2 percent to 286.5 million euros (335.6 million dollars), which the company said was due to long period of exceptionally warm weather in Northern Europe and public transport strikes in France that led to fewer customer visits. Net sales of Hema increased in the first half by 1.3 percent to 577.9 million euros (676.9 million dollars) and normalized EBITDA increased by 0.5 percent to 42.6 million euros (49.9 million dollars) compared with the same period last year.

Commenting on the company’s second quarter trading, Tjeerd Jegen, Hema CEO said in a statement: "We are not satisfied with our sales development in the second quarter. Sales were negatively impacted by a prolonged period of exceptionally warm weather in Northern Europe and public transport strikes in France."

Highlights of Hema’s Q2 results

Hema online revenue increased by 8 percent. Sales of household items and personal care improved 3.4 percent, while apparel sales decreased by 0.7 percent and the food conversion by 4.1 percent. However, the company said, through effective cost management, gross margin increased in Q2 2018 by 50 bps to 46.3 percent.

In Q2, Hema managed to reduce its net loss to 10.2 million euros (11.9 million dollars) against 29.1 million euros (34 million dollars) in Q2 2017. The company recorded a normalized EBITDA of 23.1 million euros (27 million dollars), representing a decline of 6.9 percent less compared to the same period last year driven by the lower like-for-like sales.

International sales of Hema rose further in the second quarter and the international store network grew by four stores. Hema added two stores far in Germany and two in France. In Germany, revenue jumped 42.1 percent and in France, net sales increased by 14.4 percent. The company aims to open 20 to 25 stores in 2018 outside the Benelux.

Picture:Hema media gallery