RNB Retail posts 32.8 percent drop in Q4 comparable sales

For the fourth quarter, RNB Retail said net sales decreased to 326 million Swedish krona, while comparable sales for the group on all national markets decreased by 32.8 percent. The company said in a statement that sales for comparable units in Sweden decreased by 35.5 percent, compared to the market downturn of 18.4 percent and operating income was negative 17 million Swedish krona, adjusted operating income was negative 47 million Swedish krona. The company reported profit after tax negative 50 million Swedish krona, while earnings per share were negative 0.49 Swedish krona compared to negative 3.13 Swedish krona in the fourth quarter of the previous year.

The company added that coronavirus crisis continued to affect RNB in the fourth quarter, although to a lesser extent than in the third quarter. The company’s corporate restructuring has proceeded according to plan and operating income and cash flow for the quarter improved in year-on-year terms.

RNB reports 20.2 percent annual comparable sales decrease

Net sales for the year to August 31, 2020 decreased to 1,784 million Swedish krona compared to 2,267 million Swedish krona, while comparable sales for the group on all national markets decreased by 20.2 percent. Sales for comparable units in Sweden decreased by 20.4 percent, compared to the market downturn of 12.1 percent. Operating income for the year was negative 341 million Swedish krona, operating income, excluding IFRS 16 and goodwill impairment, was negative 191 million Swedish krona, profit after tax was negative 435 million Swedish krona and earnings per share were negative 5.21 Swedish krona compared to negative 4.20 Swedish krona.

The company further said that in the third quarter, Brothers´ operations in Finland, including 12 stores and an online platform, were wound down, while four of the group’s companies started a process of corporate restructuring. The corporate restructuring period was extended by a further three months to December 23.

The company’s comparable sales decreased by 20 percent in September, in-store sales were down 26 percent and e-commerce sales increased by 23 percent compared to the same month in the previous year. The company expects sales of the first quarter and most probably quarter two will remain affected by the Covid-19 pandemic.

Picture:Facebook/Brothers