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Van de Velde like-for-like turnover up 2.7 percent in H1

By Prachi Singh

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Business

Consolidated turnover at Van de Velde in the first half of 2016 rose by 0.5 percent to 113.9million euros (126.9 million dollars). On a like-for-like basis including comparable seasonal deliveries consolidated turnover was up 2.7 percent driven by 5.9 percent rise in wholesale turnover.

Retail turnover in the US however, declined by 17.7 percent on comparable basis, both in local currency as well as in euro as the average exchange rate remained relatively stable. Due to the closure of loss-making stores, total retail turnover in the US declined by 27.9 percent. In Europe, retail turnover on comparable basis at constant exchange rates increased by 5.3 percent, especially driven by growth of 7.6 percent on comparable basis in the Netherlands and 5.5 percent in the UK. Total retail turnover in Europe declined by 4.1 percent due to closure of loss-making stores and conversion of owned into franchised store.

REBITDA up 7.1 percent in H1

REBITDA for the first half year increased by 2.5 percent from to 37.3 million euros (41.5 million dollars). On a comparable basis, consolidated REBITDA rose by 7.1 percent to 38.5million euros (42.9 million dollars) due to a rise in wholesale turnover and slight increase in gross margin. The group profit declined from 22 million euros (24.5 million dollars) to 21.2 million euros (23.6 million dollars). On a comparable basis, the consolidated group profit (including comparable deliveries) rose from 21.3 million euros (23.7 million dollars) to 22.3 million euros (24.8 million dollars). This resulted in a decline of the profit per share from 1.65 euros (1.84 dollars) to 1.59 euros (1.77 dollars).

The Board of Directors approved the payment of the interim dividend of 1.35 euros (1.50 dollars) per share. After payment of 27 percent tax, this represents a net dividend of 0.99 euros (1.10 dollars) per share.

Expects retail activities to underform

The company expects Continental Europe, especially the Netherlands to report further strong performance with growth on comparable basis. While UK showed reasonably good growth on comparable basis, but the exchange rate impact of the British pound turned this into a decline. Retail activities in the USA continue to underperform and the company expects them to decline in 2016 compared to 2015.

As of September 2016, Rigby & Peller USA will put stronger focus on online sales besides the existing store network. Van de Velde also expects a rise in REBITDA for the whole of 2016 on a comparable basis. On an annual basis, this rise will in terms of percentage be lower than the 7.1 percent reported at half-year.

Picture:Prima Donna

Van de Velde