LA PLAINE SAINT-DENIS, France, July 28, 2016 /PRNewswire/ --
Showroomprivé, an innovative European player in the online private sales industry, specializing in fashion, has published its results for the first half of 2016, ended 30 June.
(Logo: http://photos.prnewswire.com/prnh/20151124/290566LOGO )
=> All targets for 2016 have been confirmed
KEY FIGURES FOR H1 2016
(EUR million) H1 2015 H1 2016 %Growth
Net revenues 199.4 240.3 20.5%
Total Internet revenues 194.0 234.4 20.8%
EBITDA 12.3 15.7 27.9%
EBITDA as % of revenues 6.2% 6.6% +38 pts
Adjusted net income* 5.1 8.0 56.5%
Net cash position 32.8 82.8 152.5%
*Net income adjusted for costs related to the free share allocation programme as part of the IPO
Commenting on these results, Thierry Petit and David Dayan, co-founders and co-CEOs of Showroomprivé stated: "The very strong first half performance allows us to confirm our targets for 2016. We are continuing to win market share in France and to outperform the e-commerce and retail sectors. Our international operations are developing in line with our roadmap with already significant improvements in margins and acquisitions prospects. We remain focused on innovation and quality, with the goal of continuously improving the site functionality as well as payment and delivery options. We offer our members and brands partners products and services that match their needs ever more closely."
KEY HIGHLIGHTS FROM H1 2016
In the first half of 2016, Showroomprivé continued its strong revenues and profitability growth, driven by the implementation of a strategy centred on four priorities: the improvement of product offering; innovation; quality of service and client experience; and the rolling-out of a multi-local organisation for its international operations.
1. Continued strong and profitable growth
2. New functionalities to further improve the user experience
3. Further enhancements to the offering, serving the &abcz;digital woman&abcz;
4. Showroomprivé continues its multi-local international development
[1] Company re-elaboration based on Osservatorio eCommerce B2c Netcomm - Politecnico di Milano and Bureau van Dijk database
5. Showroomprivé continues to strengthen its organisation
INITIATIVES FOR THE SECOND HALF
CONFIRMATION OF THE GROUP'S OBJECTIVES FOR 2016
DETAILED COMMENTARY FOR EACH TYPE OF INDICATORS
Revenues
(EUR million) H1 2015 H1 2016 %Growth
Internet revenues
France 162.4 205.5 26.5%
International 31.6 28.9 -8.4%
Total Internet revenues 194.0 234.4 20.8%
Other revenues 5.4 5.9 9.2%
Net revenues 199.4 240.3 20.5%
(EUR million) Q2 2015 Q2 2016 % Growth
Net revenues 103.7 123.0 18.6%
The 21% increase in Group revenues to more than €240m was driven by France, where net internet revenues rose by 27%, largely outperforming growth in the e-commerce and retail sectors.
International revenues were down 8%, reflecting the current transitional phase that Group has entered into, caracterized by temporary reduction in marketing spending and the strengthening of local teams in these markets.
In the second quarter, the Group had revenues of €123m, representing growth of 19% compared to 2015.
Key performance indicators
H1 2015 H1 2016 %Growth
Total Members (in millions) 21.9 26.1 19.2%
Cumulative Buyers (in millions) 4.8 6.0 25.3%
Buyers (in millions) 1.8 2.0 14.1%
Number of Orders (in millions) 5.3 6.0 14.6%
Revenue per Buyer 110.5 117.0 5.9%
Average Number of Orders per Buyer 3.0 3.0 0.3%
Average Basket Size 36.9 38.9 5.4%
Share of Revenues from Mobile 47% 57% 10 pts
Revenues growth in the first half was driven by growth both in the number of customers and in the average revenue per buyer.
The Group gained 1.6 million new members, taking total members to 26 million on 30th June.
The number of buyers in the first half exceeded 2 million, an increase of 14% vs. the same period last year.
Average revenue per buyer was much higher than in the same period in 2015 (+6%) to reach €117. This was due primarily to a 5% increase in the average basket size compared to H1 2015, taking it to nearly €39. This trend demonstrated the attractiveness of the Group's offering and the growing loyalty of its members.
The Group's growth was underpinned by the mobile segment, which now accounts for 75% of traffic and 57% of net revenue, an increase of 10 points vs. last year. Buyers on the mobile platforms generate on average 1.4 times as many orders as those on the internet (approximately 5 orders per year).
EBITDA
(EUR million) H1 2015 H1 2016 %Growth
France 14.2 15.7 10.6%
EBITDA France as % of revenues 8.5% 7.4% -103 pts
International -1.9 0.0 n/a
EBITDA International as % of
revenues -6.0% 0.1% +610 pts
Total EBITDA 12.3 15.7 27.9%
Total EBITDA as % of revenues 6.2% 6.6% +38 pts
EBITDA grew by 28%, faster than revenues growth. It reaches €15.7m, with an EBITDA margin representing 6.6% of revenues, a significant increase on H1 2015 (+38 basis points compared to H1 2015).
This increase in profitability was the result of a significant improvement in margins at international operations, where EBITDA was at break-even, and continued strong EBITDA margin in France, at 7.4% of revenues, despite a slight dip relative to 2015.
EBITDA growth was driven by:
Cost structure
(EUR million) H1 2015 H1 2016 %Growth
Net revenues 199.4 240.3 20.5%
Cost of goods sold -118.5 -144.8 22.2%
Gross margin 80.9 95.5 18.0%
Gross margin as % of revenues 40.6% 39.7% -84 pts
Marketing 7.8 8.4 7.3%
As % of revenues 3.9% 3.5% -43 pts
Logistics & fulfilment 47.1 56.0 18.9%
As % of revenues 23.6% 23.3% -32 pts
General & administrative
expenses 15.5 17.7 15.4%
As % of revenues 7.8% 7.4% -43 pts
Total Opex 70.5 82.1 16.5%
As % of revenues 35.3% 34.1% -118 pts
Current operating profit 10.5 13.4 28.3%
Gross profit was €95m (up 18%), equivalent to 39.7% of revenues, compared to 40.6% in H1 2015. This slight decrease in margin versus last year was due to:
Operating costs were reduced significantly (by -118 basis points), from 35.3% to 34.1% of net revenues, with a positive impact across all types of cost thanks to the strong operational leverage from the cost structure, continued tight control of costs and a temporary reduction in international marketing expenditure. In more detail:
Other financial information
(EUR million) H1 2015 H1 2016 %Growth
Current operating profit 10.5 13.4 28.3%
Amortisation of intangible
assets recognized
upon business reorganisation -0.4 -0.4 0.0%
Other operating income and
expenses -0.7 -10.0 n/a
Operating profit 9.4 3.0 -67.7%
Net finance costs -0.2 -0.2 52.9%
Other financial income and
expenses 0.1 0.2 192.1%
Profit before tax 9.3 3.0 -67.7%
Income taxes -4.2 -2.3 -46.4%
Adjusted net income* 5.1 8.0 56.5%
Net income 5.1 0.7 -86.1%
*Net income adjusted for costs related to the free share allocation programme as part of the IPO
Other operating income and expenses (€10.0m) can be broken down as follows:
The Group's tax charge fell by 46% to €2.3m.
As a result, net income adjusted for costs relating to free share allocations rose by 57% to €8.0m for the period
Cash flow items
(EUR million) H1 2015 H1 2016
Cash flows from operating
activities -7.9 -13.5
Net cash flows from investing
activities -2.2 -3.6
Net cash flows from financing
activities -0.7 0.3
Net change in cash -10.9 -16.8
Net change in cash is down compared with H1 2015, at -16.8 million euros.
Cash flows from operational activities amount to -13.5 million euros mostly due to an increase of the working capital requirements vs last year (impact of -€7.8m) which is related to the growth of the business, as well as €3.6m of one-off costs. The cyclicity of the business causes negative cash flows from operating activities during the fiorst half which are compensated during the second semester.
Capital exependitures are up at €3.6m, and in slight increase as a percentage of the revenues from 1.1% to 1.5%. Cash flows from investing activities were used by the Group for investment in tangible and intangible assets, in particular on capitalized research and development costs, and computer equipment.
*
* *
The Board of Directors of SRP Groupe held on July 28th, 2016, reviewed and approved the consolidated financial statements of the Group as of June 30, 2016.
Analyst and investor conference (in English)
Speakers:
David Dayan, Chief Executive Officer
Thierry Petit, Deputy Chief Executive
Nicolas Woussen, Chief Financial Officer
Thomas Kienzi, Head of Investor Relations
Date: Thursday 28 July 2016
18:30 Paris time - 17:30 London time - 12:30 New York time
Journalists will only be able to listen to the conference
Webcast link to listen live and for the replay:
https://pgi.webcasts.com/starthere.jsp?ei=1111294
Dial-in to listen to the conference LIVE
From France: +33 (0)1 76 77 22 42
From the UK: +44 (0)20 3427 1936
From the US: +1 646 254 3369
Access code: 4502602
FORWARD-LOOKING STATEMENTS
This document contains only summary information and does not purport to be comprehensive.
This document may contain forward-looking information and statements about the Group and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements may be identified by the words &abcz;believe,&abcz; &abcz;expect,&abcz; &abcz;anticipate,&abcz; &abcz;target&abcz; or similar expressions. Although the Group believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of the Group's securities are cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Group, that could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in filings with the Autorité des Marchés Financiers made or to be made by the Group. The Group undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise.
UPCOMING PUBLICATIONS
Revenues for the 3rd quarter 2016 : 20th October 2016 (after market close)
ABOUT SHOWROOMPRIVE.COM
Showroomprive.com is an innovative European player in the online private sales industry, specialized in fashion. Showroomprivé offers a daily selection of 1 500 brand partners on its mobile app or online. It has over 26 million members in France and in eight of its European country markets. Since its launch in 2006, the company has enjoyed quick and profitable growth.
Showroomprivé is listed on the Euronext Paris (code: SRP), and reported gross turnover of over 600 million euros in 2015, corresponding to net sales of 443 million euros, up 27% versus the previous year. The company employs more than 800 people.
For more information : http://showroomprivegroup.com
CONTACTS
Showroomprivé
Thomas Kienzi, Head of Investor Relations
+33 1 49 46 05 67
investor.relations@showroomprive.com
Adeline Pastor, Head of Communications
+33 1 76 21 19 46
adeline.pastor@showroomprive.com
Brunswick
Morgane Le Gall, Tristan Bourassin
+33 1 53 96 83 83
SHOWROOMPRIVE@brunswickgroup.com
APPENDIX
PROFIT AND LOSS STATEMENT
(EUR thousands) 2014 2015 %Growth
Net revenues 349,791 442,832 26.6%
Cost of goods sold -202,929 -263,679 29.9%
Gross margin 146,862 179,153 22.0%
Gross margin as % of
revenues 42.0% 40.5%
Marketing -21,929 -26,897 22.7%
As % of revenues 6.3% 6.1%
Logistics & fulfilment -84,949 -102,650 20.8%
As % of revenues 24.3% 23.2%
General & administrative
expenses -26,828 -29,861 11.3%
As % of revenues 7.7% 6.7%
Total Opex -133,706 -159,408 19.2%
As % of revenues 38.2% 36.0%
Current operating profit 13,156 19,745 50.1%
Amortisation of intangible
assets
Recognized upon business
reorganisation -783 -783 0%
Other operating income and
expenses -2,408 -8,106 236.6%
Operating profit 9,965 10,856 8.9%
Net finance costs -144 -137 -4.9%
Other financial income and
expenses 52 -106 -303.8%
Profit before tax 9,873 10,613 7.5%
Income taxes -4,003 -5,470 36.6%
Net income 5,870 5,143 -12.4%
Total EBITDA 15,531 23,723 52.7%
Total EBITDA as % of
revenues 4.4% 5.4%
(EUR thousands) H1-15 H1-16 %Growth
Net revenues 199,419 240,330 20.5%
Cost of goods sold -118,499 -144,826 22.2%
Gross margin 80,920 95,504 18.0%
Gross margin as % of
revenues 40.6% 39.7%
Marketing -7,798 -8,371 7.3%
As % of revenues -3.91% -3.48%
Logistics & fulfilment -47,105 -55,990 18.9%
As % of revenues -23.6% -23.3%
General & administrative
expenses -15,549 -17,709 13.9%
As % of revenues -7.8% -7.4%
Total Opex -70,452 -82,070 16.5%
As % of revenues -35.3% -34.1% 1.2%
Current operating profit 10,467 13,434 28.3%
Amortisation of intangible
assets
Recognized upon business
reorganisation -391 -391 0.0%
Other operating income and
expenses -689 -10,014 -98.5%
Operating profit 9,387 3,029 -67.7%
Net finance costs -153 -234 52.9%
Other financial income and
expenses 63 184 192.1%
Profit before tax 9,297 2,979 -68.0%
Income taxes -4,240 -2,274 -46.4%
Net income 5,057 705 -86.1%
Total EBITDA 12,311 15,742 27.9%
Total EBITDA as % of
revenues 6.2% 6.6%
KEY PERFORMANCE INDICATORS
2014 2015 %Growth
CUSTOMERS METRICS
Total Members (in
thousands) 20,178 24,568 21.8%
France 13,893 16,787 20.8%
International 6,285 7,781 23.8%
Cumulative Buyers (in
thousands) 4,303 5,517 28.2%
France 3,536 4,520 27.8%
International 767 997 30.0%
Buyers (in thousands) 2,357 2,867 21.7%
France 1,922 2,389 24.3%
International 435 479 10.2%
Revenue per Buyer (EUR) 143.7 151.1 5.2%
France 148.7 154.9 4.2%
International 121.3 132.1 8.9%
ORDERS
Total orders (in
thousands) 9,108 11,748 29.0%
France 7,728 10,043 29.9%
International 1,380 1,705 23.5%
Average Orders per Buyer
(in number of orders) 3.9 4.1 6.0%
France 4.0 4.2 4.6%
International 3.2 3.6 12.0%
Average Basket Size 37.2 36.9 -0.8%
France 37.0 36.8 -0.4%
International 38.2 37.1 -2.8%
H1-15 H1-16 %Growth
CUSTOMERS METRICS
Total Members (in
thousands) 21,940 26,143 19.2%
France 15,040 17,985 19.6%
International 6,900 8,158 18.2%
Cumulative Buyers (in
thousands) 4,822 6,042 25.3%
France 3,938 4,960 26.0%
International 884 1,082 22.4%
Buyers (in thousands) 1,756 2,003 14.1%
France 1,447 1,721 19.0%
International 309 282 -8.9%
Revenue per Buyer (EUR) 110.5 117.0 5.9%
France 112.3 119.4 6.3%
International 102.2 102.6 0.4%
ORDERS
Total orders (in
thousands) 5,258 6,027 14.6%
France 4,394 5,267 19.9%
International 864 760 -12.0%
Average Orders per Buyer
(in number of orders) 3.0 3.0 0.3%
France 3.0 3.1 2.0%
International 2.8 2.7 -3.7%
Average Basket Size 36.9 38.9 5.4%
France 37.0 39.0 5.4%
International 36.5 38.0 4.2%
BALANCE SHEET
(EUR thousands) 2014 2015
Non-current assets
Goodwill 81,576 81,576
Other intangible assets 27,726 28,861
Tangible assets 14,141 14,833
Other non-current assets 1,256 1,180
Total non-current assets 124,699 126,450
Current assets
Inventory 41,691 57,068
Accounts receivable 14,925 24,014
Deferred tax assets 2,744 3,058
Other current assets 19,388 27,952
Cash and cash equivalents 47,730 102,982
Total current assets 126,478 215,074
Total assets 251,177 341,524
Long term financial debt 3,625 2,962
Obligations to personnel 89 116
Deferred taxes 9,239 9,883
Total non-current liabilities 12,953 12,961
Short-term financial debt 1,005 916
Accounts payable 75,362 100,108
Provision for risks and charges 795 993
Other current liabilities 30,346 38,499
Total current liabilities 107,508 140,516
Total liabilities 120,461 153,477
Total shareholders' equity 130,716 188,047
Total liabilities and shareholders'
equity 251,177 341,524
(EUR thousands) H1-15 H1-16
Non-current assets
Goodwill 81,576 81,576
Other intangible assets 27,900 29,276
Tangible assets 13,891 14,906
Other non-current assets 1,181 1,101
Total non-current assets 124,548 126,859
Current assets
Inventory 46,055 62,111
Accounts receivable 15,158 29,131
Deferred tax assets 823 3,215
Other current assets 17,352 27,494
Cash and cash equivalents 36,853 86,200
Total current assets 116,241 208,151
Total assets 240,789 335,010
Long term financial debt 3,225 2,499
Obligations to personnel 89 131
Deferred taxes 9,417 9,550
Total non-current liabilities 12,731 12,180
Short-term financial debt 840 916
Accounts payable 61,882 84,632
Provision for risks and charges 387 2,688
Other current liabilities 29,135 38,564
Total current liabilities 92,244 126,800
Total liabilities 104,975 138,980
Total shareholders' equity 135,815 196,031
Total liabilities and shareholders'
equity 240,789 335,010
CASH FLOW
(EUR thousands) 2014 2015
Net income for the period 5,870 5,143
Adjustments for non-cash
items 3,956 8,640
Cash flow from operations
before finance costs and
income tax 9,826 13,783
Elim of accrued income tax
expense 4,003 5,470
Elim of cost of net financial
debt 144 137
Impact of change in working
capital 13,091 -303
Cash flow from operating
activities before tax 27,064 19,087
Income tax paid -7,195 -5,141
Cash flow operating
activities 19,869 13,946
Acquisitions of property
plant & equipment and
intangible assets -4,920 -6,348
Changes in loans and advances -217 -79
Disposal of fixed assets 78 19
Net cash flows from investing
activities -5,059 -6,408
Increase in share capital and
share premium reserves 0 48,888
Issuance of indebtedness 0 0
Repayment of borrowings -507 -1,037
Net interest expense -144 -137
Net cash flows from financing
activities -651 47,714
(EUR thousands) H1-15 H1-16
Net income for the period 5,058 705
Adjustments for non-cash
items 2,333 11,211
Cash flow from operations
before finance costs and
income tax 7,390 11,916
Elim of accrued income tax
expense 4,240 2,274
Elim of cost of net financial
debt 153 51
Impact of change in working
capital -17,167 -25,014
Cash flow from operating
activities before tax -5,384 -10,773
Income tax paid -2,541 -2,764
Cash flow operating
activities -7,925 -13,537
Acquisitions of property
plant & equipment and
intangible assets -2,234 -3,612
Changes in loans and advances 0 0
Disposal of fixed assets 0 34
Net cash flows from investing
activities -2,234 -3,578
Increase in share capital and
share premium reserves 0 847
Issuance of indebtedness 0 0
Repayment of borrowings -565 -463
Net interest expense -153 -51
Net cash flows from financing
activities -718 333
BRIDGE OF TOTAL GROSS INTERNET SALES
TO IFRS NET REVENUES
(EUR thousand) 2013 2014 2015 H1-15 H1-16
Total gross Internet sales(1) 327,600 458,745 591,674 262,582 316,470
VAT(2) -51,056 -72,223 -93,515 -38,059 -49,098
Revenue recognition impacts(3) -35,053 -51,647 -68,900 -32,512 -35,369
Non-Internet revenue and other(4) 15,368 14,916 13,573 7,373 8,327
Net revenues (IFRS) 256,859 349,791 442,832 199,419 240,330
(1) Corresponds to the total amount billed to buyers during a given period.
(2) Value added tax is applied on every sale. The applicable value-added tax rate depends on the country where the buyer is located.
(3) Accounting adjustments for revenue recognition as described in Note 1.13 of the Group's annual consolidated financial statements, including: (i) timing differences due to the fact that certain criteria (e.g., delivery) must be fulfilled before recognizing revenue; (ii) the impact of reimbursements granted for cancellations and returns, which are recognized as a reduction of the revenue; and (iii) the effect of presenting certain travel sales on a net basis where the Group acts as an agent.
(4) "Non-internet revenue and other"; corresponds primarily to revenues generated from offline sales to wholesalers, including offline re-sales of returned internet sales items.
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