Steilmann revenues increase 0.7 percent in H1
30 Sep 2015
Steilmann SE Group said that its revenue increased 0.7 percent to 417 million euros (468.4 million dollars) in the first half to June 30, 2015. Retail segment revenues increased by 3 percent to 315.2 million euros (354 million dollars) and EBITDA increased by 31.7 percent.
“Our new group structure is beginning to provide greater flexibility for further expansion as we continue to diversify our operations across different distribution channels and geographies. As a result of the consolidation, revenues and overall performance increased year-on-year in the first half of the year despite challenging market conditions. We continue to identify synergies between the retail and wholesale segments of our group which support our growth efforts,” said Michele Puller, CEO of Steilmann SE Group.
Reports strong operational progress
Steilmann SE Group completed the integration of Apanage Fashion Group and Steilmann Fashion Group in December 2014, which transformed the company into a vertically integrated fashion group.
The new group structure enhances the pooling of purchasing volumes and thus facilitates growth in intragroup purchases. As a result, purchases by Adler Modemärkte AG from other group companies increased to 11.9 million euros (13.3 million dollars) in H1 2015 from 5.5 million euros (6.1 million dollars) in H1 2014. The new group sees growing intercompany sales as one of the key drivers for increasing synergies and profitability across the segments.
During the first six months of 2015, the company continued to develop its omni-channel distribution network and at the end of H1 2015, the Group had 1,378 POS compared to 1,326 POS at the end of December 2014. In the first six months, the distribution network thereby grew by 59 POS and the company closed seven unprofitable POS as part of on-going efforts to improve operations and efficiency.
Improved EBITDA performance
Steilmann has also improved the diversification of its sales by geography with revenues from outside Germany contributing 26 percent to group revenue in the first half. The wholesale segment EBITDA reached 5.6 million euros (6.2 million dollars) in H1 and made a substantial positive contribution to EBITDA growth. Wholesale cost of materials as a percentage of wholesale revenue improved from 70.1 percent in H1 2014 to 66.1 percent in H1 2015 driven by an increase in the share of higher margin brand products, better purchasing conditions and production synergies.
The retail segment contributed 1.8 million euros (2 million dollars) to EBITDA; cost of materials of the retail segment increased by 11.4 percent to 157.3 million euros (176.5 million dollars) and constituted 50 percent of retail segment revenue compared to 45.9 percent in the first half of 2014.
The company said that adjusted EBITDA decreased by 15.1 percent due to planned integration costs associated with the Kressner acquisition by the subsidiary, Adler Modemärkte AG. By acquiring Steilmann Fashion Group and Apanage Fashion Group, the company said that it now covers the entire value chain of the clothing industry including design, sourcing, production and an omni-channel distribution network.