OVS posts profit, FY21 sales improve by 33.4 percent

Net sales at OVS SpA of 1,359 million euros, were up 33.4 percent from 2020.

The company’s net result improved by 49.6 million euros, from a loss of 4.8 million euros in 2020 to a profit of 44.8 million euros in 2021.

Review of OVS financial results

The company said in a statement that the first quarter of FY21 was still characterised by periods of store closures and minor sales versus 2019; while in the second and third quarters sales were 11 percent higher, and in the fourth quarter, despite the arrival of the Omicron variant and some supply-chain difficulties in the retail sector, sales were in line with 2019.

Adjusted EBITDA 147.2 million euros, was 74 million euros higher compared to 2020, and 9.1 million euros lower compared to 2019. EBITDA margin was 10.8 percent compared to 7.2 percent in 2020, due to higher sales, declining mark-down and cost reduction efforts.

Net sales were up by 29 percent in OVS, on a constant perimeter, while Upim grew by 45 percent due to new openings. The company added that higher operating leverage in OVS allowed for a sharper rebound in EBITDA of 125 percent, and also Upim managed to have an EBITDA increase 10 percent higher than sales trend.

The company further said that 2022 started with a strong recovery versus 2021 but, due to external factors like Ukrainian war, Omicron variant, etc., sales were still below 2019 until the end of March, while weather normalisation and arrival of SS22 goods are pushing April sales back to 2019 levels.