OVS posts 4.7 percent rise in H1 sales

Total sales at OVS grew by 29 million euros (32 million dollars), or 4.7 percent, with a positive contribution from network expansion, whilst sales growth on a like-for-like basis declined 2.9 percent. The company said, like-for-like sales were adversely affected by unfavourable weather conditions, particularly in May, which was also a strong month in the previous year. Like-for-like sales excluding May were slightly positive.

OVS registered an increase in sales of 4.3 percent, up 22.2 million euros (24.7 million dollars), driven by the steady expansion of the DOS network and an acceleration of franchise openings. UPIM sales rose by 7.2 percent or 6.8 million euros (7.5 million dollars), benefiting from the positive reception of the brand's repositioning and expansion of the Blukids franchise network.

Highlights of the first half results

EBITDA was 75.1 million euros (83.7 million dollars), up 7.4 million euros (8.2 million dollars), a rise of 10.9 percent. The company said, both brands made a strong contribution to this performance, along with a substantial improvement in the gross margin. The OVS brand registered an increase of 3.4 million euros (3.7 million dollars) in EBITDA (up 5.3 percent on last year), while the UPIM brand increased by 4 million euros (4.4 million dollars), up 98.4 percent.

On the back of positive EBITDA performance, operating income came in at 51 million euros (56.8 million dollars), up 6.6 million euros (7.3 million dollars) or 14.8 percent compared to the same period last year. Profit before tax was 44.5 million euros (49.6 million dollars), up 7 million euros (7.8 million dollars) or 18.7 percent compared to the first half of 2015. This performance was driven by operating income and decreasing financial expenses. Net profit stood at 30.8 million euros (34.3 million dollars), up by 6.5 million euros (7.2 million dollars).

Picture:OVS