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Tendam records strong revenue and profit growth, considers IPO

By Prachi Singh


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Exterior of a Cortefiel store Credits: Image: Tendam

Tendam Brands, the parent company of Tendam, reported revenues in the first half stood at 606.2 million euros, up 5 percent versus the same period last year. The company’s like-for-like sales increased by 6.2 percent.

At the end of the first half, Tendam's gross margin stood at 63.3 percent, up 1 percentage point year on year, adjusted EBITDA totalled 151 million euros, up 8.2 percent, while profit before tax amounted to 43.6 million euros, up 18.5 percent versus the first half of the previous year. Driven by the strong growth, the company is considering floating an IPO.

Commenting on the trading update, Tendam chairman and CEO Jaume Miquel said: "In the first half of the year, the group stepped up the pace of all its new strategic initiatives, which accounted for 32.5 percent of the company's growth over the period. Sales growth, combined with easing inflationary pressures, also led to further improvements in margins and profitability.”

In the first half of this year, Tendam launched Hi&Bye, its own brand for underwear and swimwear for young people, and the Springfield kids line, as well as increasing the number of third-party brands on the multi-brand platform from 110 to 150.

Cortefiel and Pedro del Hierro brands under Tendam portfolio posted sales growth of 8.3 percent. Globally, the company said, one of the best-performing markets was Mexico, a key market in the group’s international expansion plan where sales were up by 20.4 percent, where Tendam is now approaching 120 points of sale.

Tendam’s store network totalled 1,829 points of sale at the end of the period, of which 1,172 are own-brand stores and department store corners and 657 are franchises. In the last twelve months, Tendam opened 25 new locations.

“As a result of Tendam’s strong operating and financial performance under the plan implemented in recent years, its consistent performance in both sales and profit and the recent upgrades to its rating outlook by the top rating agencies the company and its shareholders are contemplating potential strategic alternatives to drive the company forward to its next growth phase, including the possibility of an initial public offering of its shares on a regulated market,” added Miquel.

Pedro del Hierro