Company announcement no. 14 2023/24, Allerød, 10 November 2023
Interim report
H1 2023/24
(1 April – 30 September 2023)
Revenue and earnings growth continued
as Matas and KICKS joined forces
Webcast
Matas Group will host a webcast for investors and
analysts on Friday, 10 November at 10:00 a.m.
CET. The webcast and the presentation can be
accessed from Matas’ investor website:
https://investor.matas.dk.
Webcast access numbers
for investors and analysts:
DK: +45 78 76 84 90
UK: +44 203 769 6819
US: +1 646 787 0157 PIN for all countries: 915912
Link to webcast:
https://matas-events.eventcdn.net/events/h1-
interim-report-202324
Contents
3 Revenue and earnings growth
continued as Matas and KICKS
joined forces
4 Q2 2023/24 highlights
5 H1 2023/24 highlights
6 Key financials
7 Management’s review
10 Q2 and H1 2023/24 performance
13 Costs and operating performance
16 Statement by the Board of Directors
and the Executive Management
17 Statement of
comprehensive income
18 Statement of cash flows
19 Statement of financial position
20 Statement of changes in equity
22 Notes
29 Interim financial highlights
30 Additional information
Page 2 of 31
Matas Group | Interim report – H1 2023/24
Q2
21/22
5.2
5.4
6.6
Q2
22/23
Q2
23/24
Q2
21/22
Q2
22/23
Q2
23/24
974
989
1,285
Q2
21/22
Q2
22/23
Q2
23/24
166
160
177
• Q2 2023/24 includes KICKS Group AB ("KICKS") from
completion of the acquisition on 31 August 2023, hence
one month of financial performance. All numbers for Q2
2023/24 reflect the combined business, Matas Group,
unless stated otherwise.
• Matas Group generated a total revenue of DKK 1,285
million in Q2 2023/24 corresponding to a year-on-year
increase of 29.9% from DKK 989 million in Q2 2022/23.
Organic growth in Q2 was 8.0%.
• Gross margin was 44.5% in the quarter, in line with
expectations and 0.3 percentage points below last year.
• EBITDA before special items came to DKK 177 million in
Q2 2023/24 compared to DKK 160 million last year, and
the EBITDA margin before special items was 13.8% in the
quarter against 16.2% last year.
• Profit for the period amounted to DKK 2 million after
tax compared to DKK 47 million last year, impacted by
higher interest costs and special items of DKK 39 million
related to the acquisition of KICKS.
• Matas Group maintains its guidance for the financial
year 2023/24 to revenue in the range of DKK 6,400-6,600
million. Expectation to EBITDA margin before special items
is maintained at around 15%, and CAPEX, excl. M&A, is
maintained at DKK 500-525 million. Please see company
announcement no. 12 2023/24 for assumptions related to
the guidance.
Revenue and earnings growth continued
as Matas and KICKS joined forces
“The summer quarter was a milestone in Matas' history. We joined forces with KICKS to
create the Nordic market leader, and we are off to a good start with close collaboration
and first synergies delivered. At the same time, our organic growth strategy delivered
8.0% growth despite a wet July and macroeconomic uncertainty. Sales were up across
all channels with standout online growth of 33% in Matas. Our investment in assortment
expansion continued with 44 new brands introduced in the quarter. Finally, we broke
ground for Matas Logistics Center and took final steps towards the opening of KICKS'
Logistics Center, creating a platform for long-term growth across the Nordics.”
Gregers Wedell-Wedellsborg, Matas Group CEO
Customer transactions
Millions
Revenue
DKKm
EBITDA before special items
DKKm
0.9 KICKS
217 KICKS
Page 3 of 31
Matas Group | Interim report – H1 2023/24
Q2 2023/24 highlights
• Matas Group generated a total revenue
of DKK 1,285 million in Q2 2023/24
corresponding to a year-on-year increase
of 29.9% from DKK 989 million in Q2 2022/23.
Retail sales increased by 30.2%, while
organic growth was 8.0%.
• Online sales grew by 60.9%. Overall, online
sales accounted for 29%. Physical stores
reported sales up by 20.5% compared to Q2
last year. Organic growth online was 33%.
• Customer traffic was strong, and the
number of transactions increased by 23.6%
to 6.6 million, and the average basket size
grew by 1.8% to DKK 183 per transaction
compared to Q2 last year.
• Gross profit for Q2 2023/24 amounted to DKK
573 million, up from DKK 443 million in Q2
2022/23. The gross margin was 44.5%, down
from 44.8% in Q2 2022/23 due to product
mix and assortment expansion.
• Other external costs amounted to DKK 152
million in Q2 2023/24, up from DKK 86 million
in Q2 2022/23. Other external cost include
special items of DKK 27 million in Q2 2023/24,
attributable to the KICKS transaction.
• Q2 2023/24 staff costs amounted to DKK
282 million, up by DKK 86 million from DKK
197 million in Q2 2022/23. Staff costs include
special items of DKK 12 million in Q2 2023/24
attributable to the KICKS transaction.
• EBITDA before special items came to DKK
177 million up from DKK 160 million in Q2
2022/23 resulting in an EBITDA margin before
special items of 13.8% in Q2 2023/24.
• The total amortisation, depreciation and
impairment charges were up by DKK 26
million to DKK 113 million in Q2 2023/24,
whereof DKK 21 million derives from KICKS.
• Profit for the period amounted to DKK 2
million after tax against DKK 47 million in Q2
2022/23, impacted by the higher interest
costs and special items of DKK 39 million
related to the acquisition of KICKS.
• Free cash flow was an outflow of DKK 779
million in Q2 2023/24 compared with an
inflow of DKK 60 million in Q2 2022/23,
primarily driven by the acquisition of KICKS
of DKK 692 million, net DKK 617 million
less KICKS' own cash at the time of the
acquisition DKK 75 million.
Page 4 of 31
Matas Group | Interim report – H1 2023/24
H1 2023/24 highlights
• Matas Group generated a total revenue
of DKK 2,435 million in H1 2023/24
corresponding to a year-on-year increase
of 19.2% from DKK 2,043 million in H1 2022/23.
Retail sales increased by 19.2%, while
organic growth was 8.6%.
• Online sales grew by 42.6%. Overall, online
sales accounted for 29%. Physical stores
reported sales up by 11.6% compared to H1
last year. Organic growth online was 29%.
• Customer traffic was strong, and the
number of transactions increased by 15.6%
to 12.6 million, and the average basket size
grew by 1.1% to DKK 185 per transaction.
• Gross profit for H1 2023/24 amounted to DKK
1,079 million, up from DKK 909 million in H1
2022/23. The gross margin was 44.3%, down
from 44.5% in H1 2022/23 due to product mix
and assortment expansion.
• Other external costs amounted to DKK 264
million in H1 2023/24, up from DKK 164 million
in H1 2022/23. Excluding special items, other
external cost increased by DKK 56 million
compared to H1 2022/23, including KICKS
and continued investment in assortment
expansion.
• Staff costs amounted to DKK 497 million in
H1 2023/24, up from DKK 398 million in H1
2022/23.
• EBITDA before special items came to DKK
378 million up from DKK 352 million in H1
2022/23 resulting in an EBITDA margin before
special items of 15.5% in H1 2023/24.
• The total amortisation, depreciation and
impairment charges were up by DKK 28
million to DKK 204 million in H1 2023/24,
whereof DKK 21 million derives from KICKS.
• Profit for the period amounted to DKK 51
million after tax against DKK 116 million in
H1 2022/23, impacted by the higher interest
costs and special items of DKK 60 million
related to the acquisition of KICKS.
• Free cash flow was an outflow of DKK 578
million in H1 2023/24, compared with an
inflow of DKK 159 million in H1 2022/23,
primarily driven by the acquisition of KICKS
of DKK 692 million, net DKK 617 million
less KICKS' own cash at the time of the
acquisition DKK 75 million.
Page 5 of 31
Matas Group | Interim report – H1 2023/24
Key financials
(DKKm)
Q2
2023/24
Q2
2022/23
H1
2023/24
H1
2022/23
Statement of comprehensive income
Revenue 1,285.4 989.2 2,435.4 2,042.7
Gross profit 572.6 442.9 1,078.7 909.0
EBITDA 138.1 160.0 317.9 346.7
EBIT 25.0 73.3 113.7 170.9
Net financials (21.4) (13.3) (44.7) (22.3)
Profit before tax 3.6 60.0 69.0 148.6
Profit for the period after tax 1.6 46.7 50.6 115.8
Special items 39.1 - 60.3 4.8
EBITDA before special items 177.2 160.0 378.2 351.5
Adjusted profit after tax 47.0 55.6 124.9 137.2
Statement of financial position
Total assets 8,624.9 6,111.2
Total equity 3,364.4 3,195.8
Net working capital 261.2 47.6
Net interest-bearing debt 3,003.3 1,583.7
Statement of cash flows
Cash flow from operating activities (71.2) 145.7 180.3 290.2
Cash flow from investing activities (707.4) (85.5) (758.0) (131.4)
Free cash flow (778.6) 60.2 (577.7) 158.8
(DKKm)
Q2
2023/24
Q2
2022/23
H1
2023/24
H1
2022/23
Ratios
Revenue growth 29.9% 1.6% 19.2% 2.4%
Organic growth 8.0% 1.6% 8.6% 2.4%
Gross margin 44.5% 44.8% 44.3% 44.5%
EBITDA margin 10.7% 16.2% 13.1% 17.0%
EBITDA margin before special items 13.8% 16.2% 15.5% 17.2%
EBIT margin 1.9% 7.4% 4.7% 8.4%
Cash conversion (72.5)% 37.2% 24.2% 45.9%
Earnings per share, DKK 0.04 1.23 1.33 3.06
Diluted earnings per share, DKK 0.04 1.22 1.32 3.04
Share price, end of period, DKK 97.6 67.5
ROIC before tax including goodwill 8.3% 9.9%
ROIC before tax excluding goodwill 28.0% 50.5%
Net working capital as a percentage of
LTM revenue 5.4% 1.1%
Investments as a percentage of revenue 55.0% 8.6% 31.1% 6.4%
Net interest-bearing debt/EBITDA before
special items ** 2.8 2.0
Number of transactions (millions)* 6.64 5.37 12.59 10.89
Average basket size (DKK)* 182.7 179.4 185.4 183.3
Number of stores 488 261
Club members Matas and KICKS (millions) 5.52 1.79
Club Matas Plus members (thousands) 85.7 60.6
Average number of employees (FTE) 2,620 2,140 2,337 2,105
* For definitions of key financials, see page 95 of the 2022/23 Annual Report.
** LTM EBITDA includes pro forma financials of KICKS LTM.
Page 6 of 31
Matas Group | Interim report – H1 2023/24
Management’s
review
Acquisition of KICKS
On 31 August 2023, the acquistion of KICKS
was completed, creating the #1 Beauty
omnichannel retail business in the Nordics,
with Matas leading Denmark and KICKS
leading in Sweden and Norway. KICKS is a
contender for market leadership in Finland.
Through the combination, Matas and KICKS
will be able to better serve customer demand
for larger assortment, new brands, access to
stores, fast, convenient and inspiring online
shopping and keep a continued focus on
personal and expert advisory and service.
Matas and KICKS will serve +5 million club
members across the four Nordic markets with
almost 500 stores, leading web shops, +3,800
skilled colleagues, and offer a category
leading portfolio of third party brands, own
brands, and services
The H1 report only includes the performance
in KICKS for the month of September, but
otherwise fully consolidated into the H1
statement.
The following section primarily focus on the
execution of the Matas strategy in Denmark,
with a brief update on KICKS.
Strategic tracks
Commercial: Matas offers the broadest and most attractive
health and beauty assortment to the Danish consumers.
Going forward to 2025/26, Matas will continually expand its
online assortment with new brands, products and categories.
E-commerce: matas.dk is the second most visited web shop
in Denmark and the number one online destination for health
and beauty in Denmark. Furthermore, Matas runs a number
of niche web shops operated by Firtal and Web Sundhed, an
online pharmacy service platform. Going forward to 2025/26,
Matas aims to strengthen its market leadership through
continuous customer satisfaction improvements.
Connected retail: With 262 stores nationwide and more
than 2,000 trained beauty and health advisors, Matas has
the most accessible network and a value-adding service
concept. Matas aims to offer personalised advice and
seamless shopping across all channels by strengthening its
in-store digital services and adapting the network to market
demands.
Brands: As the owner of a category-leading brand portfolio,
Matas offers distinctive and unique branded products with
national recognition. Going forward to 2025/26, Matas will
expand its House of Brand portfolio and grow the Matas
Brands business via own channels and through wholesale.
Logistics: With in-house logistics, Matas delivers a fast and
consistent experience to both customers and suppliers.
Going forward to 2025/26, Matas will invest in a new Matas
Logistics Centre (MLC) with automated logistics to enhance
effectiveness and enable assortment expansion.
Internationalisation: A selection of Matas’ own brands
including Matas Striberne, Matas Natur and My Moments, is
available at 225 stores in Germany.
ESG: As one of the most wellknown brands in Denmark, Matas
is recognised as a responsible company by consumers.
Going forward to 2025/26, Matas aims to make continued
progress on its ESG focus areas: Reducing climate footprint,
contributing to public health and championing inclusion.
Page 7 of 31
Matas Group | Interim report – H1 2023/24
Strong progress continued in
Q2 across the seven tracks of
the Growing Matas strategy
Matas
Strategic initiatives in Q2 2023/24
In August 2021, Matas launched its five-
year Growing Matas strategy. Based on the
purpose ‘Health and Beauty for Life’, Matas
will grow by selling more to existing customers
– especially the 1.9 million Club Matas
members –driven by an expansion of the
assortment.
Commercial: Expand assortment
• Continued the fast assortment expansion
with addition of 44 new brands and 1,200
new SKUs online during Q2.
• The more than 200 new brands launched
during 2022/23 contributed to approximately
half of the Q2 2023/24 revenue growth.
E-commerce: Extend market leadership
• Following revenue growth of 26% in Q1,
Matas online had even stronger revenue
growth of 33% in Q2, mainly driven by the
continued assortment expansion and
increase in number of transactions as seen
over the last quarters.
Connected retail: Consolidate
and connect stores
• During the quarter, one new Life concept
store was opened at Islands Brygge,
Copenhagen, which was off to a good start.
This took the total number of stores to 262.
The store NPS has never been higher.
• In September, we rolled out “endless aisles”
(sale of products from matas.dk through the
stores) on mobile POS, with great success.
• In Q2, 98 events for customers were held
across Denmark where 2,200 customers
participated.
Brands: Grow portfolio of House Brands
• A new communication platform for Matas
Striberne, targeting the young consumer,
was launched. In September, a new sub-
category in Health was entered into with the
launch of Matas Striberne Gummies.
• Private label brands grew 10% in Q2 and
accounted for 18% of retail revenues.
Logistics: Automate logistics
• The construction of Matas Logistics Center
(MLC), which will more than double Matas
overall capacity of web orders when
fully operational in 2025, is progressing
Management’s review
according to plan. The land is ready for
construction, which will start in November.
• The existing webshop facilities in Humlebæk
continue to offer adequate room for further
assortment expansion in the years to come.
Internationalisation: Geographical
expansion
• In Germany, selected products from Matas
Striberne, Matas Natur and My Moments
are now available at 225 doors, while
Nilens Jord will be available in 70 doors by
October 2023.
ESG/CSR: Impact society
in a positive way
• During Q2, Matas has continued its focus
on the social aspect. In August, Matas
was official partner to Copenhagen
Pride and, apart from various events and
fundraising activities, Matas launched a
major campaign focusing on supporting
awareness on inclusion. Furthermore, Matas
supported the Danish Cancer Society with
fundraising activities linked to breast and
skin cancer.
Page 8 of 31
Matas Group | Interim report – H1 2023/24
KICKS
• KICKS operates in Sweden, Norway and
Finland with 226 stores and online. The
online business consists of two concepts
KICKS and Skincity.
• Skincity is an online skincare clinic that offers
a premium range of professional skincare
and skincare infused makeup. Skincity was
acquired by KICKS in January 2023 and will
be fully integrated into KICKS platforms and
operations by end of year.
• A key priority for KICKS is to ensure a relevant
and competitive customer offer in all
channels with the ability to order online,
and pick up in store within less than 4 hours
as a pillar (Click Express). In September, the
share of Click Express reached an all-time
high with 18% share of orders.
• When you become a member of KICKS
Club in Sweden, you also get access to
the community KICKS Beauty Talks. In
KICKS Beauty Talks you can ask questions,
exchange experiences, share your
favourites and participate in competitions
with other beauty lovers. Plans to launch
KICKS Beauty Talks in Norway are being
finalised.
• KICKS is opening a central Nordic omni
warehouse located outside Stockholm,
Sweden. The warehouse will serve both
stores and e-commerce customers across
the markets and enable both cost and
capital efficiencies. The warehouse is
designed to meet high sustainability
ambitions and will be using a highly
automated shuttle technology. The new
omni warehouse will handle part of the
production during autumn 2023 and will
then be fully ramped up after the Christmas
sales, during Q4 2023/24.
Management’s review
Page 9 of 31
Matas Group | Interim report – H1 2023/24
69
29
2
39
33
26
2
Q2 and H1 2023/24 performance
Revenue
Matas Group generated total revenue of
DKK 1,285 million in Q2 2023/24, a year-on-
year increase of 29.9% from DKK 989 million
in Q2 2022/23. Retail sales were up by 30.2%
to DKK 1,256 million. The increase was mainly
due to the acquisition of KICKS on 31 August
2023 which has been included in Q2 2023/24,
reflecting one month of KICKS revenue in Q2.
Total revenue grew DKK 296 million compared
to Q2 2022/23 whereof organic revenue
growth was 8.0% or DKK 79 million and the
remaining 21.9% or DKK 217 million related to
KICKS.
Most of the KICKS revenue was generated
within the High-End Beauty category and
the rest in Mass Beauty thus reflecting the
significant growth in both categories in Q2
2023/24 compared to last year.
Revenue was up across all sales channels.
Growing sales by DKK 150 million, the physical
stores recorded the largest absolute increase,
mainly due to the acquisition of KICKS.
Organic revenue in stores was a decline of
0.3%. Online grew 61% with an organic growth
of 33%.
Revenue by categories and sales channels
(DKKm)
Q2
2023/24
Q2
2022/23
Growth
(%)
H1
2023/24
H1
2022/23
Growth
(%)
Categories
High-End Beauty 491.8 315.2 56.0% 863.1 675.8 27.7%
Mass Beauty 415.2 345.7 20.1% 826.5 718.0 15.1%
Health and Wellbeing 322.5 272.5 18.4% 635.5 542.0 17.3%
Other 26.8 31.3 (14.5)% 52.0 57.8 (10.1)%
Retail revenue 1,256.3 964.7 30.2% 2,377.1 1,993.6 19.2%
Retail revenue by category (%)
High-End Beauty 39% 33% 36% 34%
Mass Beauty 33% 36% 35% 36%
Health and Wellbeing 26% 28% 27% 27%
Other 2% 3% 2% 3%
Sales channels
Physical stores 881.7 731.9 20.5% 1,676.6 1,502.3 11.6%
Online 374.6 232,8 60.9% 700.5 491.3 42.6%
Wholesale 29.1 24.5 18.9% 58.3 49.1 18.7%
Total revenue 1,285.4 989.2 29.9% 2,435.4 2,042.7 19.2%
Revenue by sales channel (%)
Physical stores 69% 74% 69% 74%
Online 29% 24% 29% 24%
Wholesale 2% 2% 2% 2%
Revenue by sales channel (%)
Online
Physical stores
Wholesale
2023/24
Q2
Retail revenue by category (%)
High-End Beauty
Other
Mass Beauty
Health and Wellbeing
2023/24
Q2
Page 10 of 31
Matas Group | Interim report – H1 2023/24
In Q2 the number of transactions increased
by 23.6% to 6.6 million and the average
basket size increased by 1.8% to DKK 183
per transaction. The organic number of
transactions increased by 6.7% to 5.7 million
and the average basket size increased by
1.0% to DKK 181 per transaction. The strong
cutomer trafifc was driven by online.
Revenue for H1 2023/24 amounted to DKK
2,435 million corresponding to an increase
of 19.2% from the year earlier period, while
organic sales grew by 8.6%. Revenue was up
across all sales channels.
In H1 2023/24 the number of transactions
increased by 15.6%, while the average basket
size grew 1.1%. The increase was mainly
attributable to the KICKS transaction. The
organic number of transactions increased
by 7.3% to 11.7 million in H1 and the average
basket size increased by 0.9% to DKK 185 per
transaction.
Q2 and H1 2023/24 performance
Page 11 of 31
Matas Group | Interim report – H1 2023/24
Q2 and H1 2023/24 performance
Performance by category
Both High-End and Mass Beauty reported
significantly higher sales in Q2 2023/24
compared to Q2 2022/23 mainly due to the
acquisition of KICKS. The Beauty segment
accounted for 72.2% of the retail revenue
compared to 68.5% in Q2 2022/23.
Health and Wellbeing was the primary growth
driver in both absolute and relative terms
when looking at the organic performance.
Sales of special skincare and health products
recorded ongoing significant growth during
the quarter, the latter supported by the Fixed
Low Price programme.
Private labels (mainly in Mass Beauty) sales,
including Nilens Jord and Miild, accounted
for 18.3% of the revenue generated by
Matas stores and matas.dk in Q2 2023/24, an
increase of 0.5 percentage points compared
to Q2 2022/23.
In H1, the Beauty categories had the highest
absolute growth partly due to the acquisition
of KICKS. Organically, Health and Wellbeing
was the primary growth driver in H1 and sales
grew significantly compared to H1 2022/23.
Performance by sales channel
Physical stores grew revenue by 20.5% or DKK
150 million to DKK 882 million compared to Q2
2022/23. Organic revenue declined by 0.3%
in stores. The number of Matas stores at 30
September 2023 amounted to 262, a year-on-
year increase of one, while KICKS added 226
physical stores at 30 September 2023.
Online sales were up by 60.9% or DKK 142
million to DKK 375 million. The organic online
business grew 33%. Overall, online sales
accounted for 29.1% of Q2 2023/24 revenue
against 23.5% in Q2 2022/23.
In Q2 2023/24, wholesale grew by DKK 4.6
million to DKK 29 million driven by an increase
in wholesale from Web Sundhed.
Revenue for H1 2023/24 amounted to DKK
2,435 million, an increase of 19.2% from the
year earlier period. Physical stores grew
revenue by 11.6%, while online sales were up
by 42.6%. The increase was mainly attributable
to the KICKS transaction.
Wholesale reported revenue growth of DKK 9.2
million to DKK 58 million in H1 2023/24.
Categories
Matas Group is characterised by its wide
assortment of beauty, personal care, health,
wellbeing and problem-solving household
products. This broad product range creates
a unique one-stop retail value proposition
for Matas Group’s customers in the shape of
four categories:
High-End Beauty: Luxury beauty products,
including cosmetics, skincare and haircare
products and fragrances.
Mass Beauty: Everyday beauty products
and personal care, including cosmetics,
skincare and haircare products.
Health and Wellbeing: MediCare (OTC
medicine and nursing products). Vitamins,
minerals, health supplements, specialty
foods and herbal medicinal products.
Sports, nutrition and exercise. Mother and
child. Personal care products (oral, foot
and intimate care and hair removal) and
special skincare.
Other: Clothing and accessories (footwear,
hair ornaments, jewellery, toilet bags,
etc.). House and gardening (cleaning and
maintenance, electrical products, interior
decoration and textiles) and other.
Sales channels
At 30 September 2023, Matas consisted
of 262 physical stores – 261 stores in
Denmark and one on the Faroe Islands. In
addition, Matas has one associated store
in Greenland. KICKS added 226 physical
stores at 30 September 2023. 69% of Q2
2023/24 revenue was generated by Matas
Groups' physical stores.
In addition, Matas was present online
through matas.dk, matas.no, matas.se,
kicks.se, skincity.com and several web
shops operated by Firtal. 29% of revenue
was generated through Matas' online
channels.
Wholesale mainly consists of wholesale
from Web Sundhed, Kosmolet, Miild and
international wholesale of Matas’ house
brands in Germany, but it also includes
value adjustments of Club Matas points.
Wholesale accounted for 2% of revenue in
the quarter.
Page 12 of 31
Matas Group | Interim report – H1 2023/24
Costs
(DKKm)
Q2
2023/24
Q2
2022/23 Growth
Other external costs 152.2 86.4 76.2%
- of which special items 27.1 -
As a percentage of revenue 11.8% 8.7%
Staff costs 282.3 196.5 43.7%
- of which special items 12.1 -
As a percentage of revenue 22.0% 19.9%
Costs
(DKKm)
H1
2023/24
H1
2022/23 Growth
Other external costs 263.6 163.9 60.8%
- of which special items 48.2 4.8
As a percentage of revenue 10.8% 8.0%
Staff costs 497.2 398.4 24.8%
- of which special items 12.1 -
As a percentage of revenue 20.4% 19.5%
Costs and operating performance
Gross profit for Q2 2023/24 amounted to DKK
573 million, up from DKK 443 million in Q2
2022/23.
The gross margin for Q2 2023/24 was 44.5%,
down from 44.8% in the same period last
year due to product mix and assortment
expansion.
Gross profit for H1 2023/24 amounted to DKK
1,079 million, up by DKK 170 million from DKK
909 in H1 2022/23. The gross margin was 44.3%,
down from 44.5%.
Adjusted for special items, overall costs (other
external costs and staff costs) amounted to
30.8% of revenue in Q2 2023/24 against 28.6%
the year before. Reported costs in the quarter
amounted to 33.8% of revenue and were up
by DKK 152 million compared to Q2 2022/23.
Other external costs amounted to DKK 152
million in Q2 2023/24, up by DKK 66 million from
DKK 86 million in Q2 2022/23.
Adjusted for special items of DKK 27 million
related to the KICKS transaction, other
external costs increased by DKK 39 million
reflecting KICKS' and Matas' continuing digital
growth and execution of the Growing Matas
assortment expansion.
Other external costs adjusted for special items
accounted for 9.7% of revenue in Q2 against
8.7% the year before. Reported other external
costs accounted for 11.8% of revenue in the
quarter.
Other external costs amounted to DKK 264
million in H1 2023/24, up by DKK 100 million
from DKK 164 million in H1 2022/23.
Q2 2023/24 staff costs amounted to DKK 282
million, up by DKK 86 million from DKK 197
million in the year earlier period. Staff costs
include special items of DKK 12 million in Q2
2023/24 attributable to KICKS. There were no
special items in Q2 2022/23.
The increase in staff costs was, besides KICKS,
related to executing the Growing Matas
strategy and increased online sales.
Staff costs adjusted for special items
accounted for 21.0% of revenue in Q2 against
19.9% in the year earlier period. Reported staff
costs accounted for 22.0% of revenue in Q2
2023/24.
Staff costs amounted to DKK 497 million in H1
2023/24, up from DKK 398 million in H1 2022/23.
At 30 September 2023, Matas Group had
2,337 full-time employees, against 2,105 at 30
September 2022. The addition mainly relates
to one month average of KICKS employees.
EBITDA before special items came to DKK 177
million against DKK 160 million in Q2 2022/23
and EBITDA margin before special items was
Page 13 of 31
Matas Group | Interim report – H1 2023/24
Costs and operating performance
13.8%, against 16.2% in the year earlier period.
Q2 2023/24 reported EBITDA was DKK 138
million.
H1 2023/24 EBITDA before special items
amounted to DKK 378 million compared to
DKK 352 million in H1 2022/23. The EBITDA
margin before special items was 15.5% against
17.2% in H1 2022/23.
Amortisation, depreciation
and impairment
The total amortisation, depreciation and
impairment charges were up by DKK 26
million to DKK 113 million in Q2 2023/24, mainly
attributable to KICKS.
Net financials
Net financial expenses were up by DKK 8
million to DKK 21 million in Q2 2023/24 due to
interest rate increase.
Profit for the period
Profit for the period amounted to DKK 2 million
after tax, against DKK 47 million in Q2 2022/23.
Adjusted profit after tax amounted to DKK
47 million in Q2 2023/24 compared to DKK 56
million in the year earlier period.
In H1 2023/24, adjusted profit after tax
amounted to DKK 125 million against DKK 137
million in H1 2022/23.
Statement of financial position
Total assets amounted to DKK 8,625 million on
30 September 2023, up from DKK 6,111 million
at 30 September 2022.
Non-current assets increased by DKK 1,400
million to DKK 6,381 million.
Current assets totalled DKK 2,230 million, a
year-on-year rise of DKK 1,102 million.
Inventories amounted to DKK 1,755 million at
30 September 2023 which is an increase of
DKK 756 million compared to the end of Q2
2022/23. KICKS accounted for DKK 683 million.
Inventories, excluding KICKS, accounted for
23.0% of LTM revenue at 30 September 2023
compared to 22.8% at 30 September 2022.
Trade receivables increased by DKK 64 million
to DKK 98 million. KICKS accounted for DKK 51
million. Trade payables increased by DKK 379
million year-on-year. KICKS accounted for DKK
397 million.
Net working capital excluding deposits
amounted to DKK 261 million at 30 September
2023 against DKK 48 million at 30 September
2022.
Cash and cash equivalents amounted to DKK
262 million, up from DKK 43 million the year
before.
Equity amounted to DKK 3,364 million at 30
September 2023 compared to DKK 3,196
million at 30 September 2022.
Net interest-bearing debt amounted to DKK
3,003 million at 30 September 2023, a year-
on-year increase of DKK 1,420 million. Of this
increase, DKK 786 million was attributable to
higher lease liabilities. The gearing ratio was
2.8 times LTM EBITDA before special items,
which is in line with our long-term target of a
level between 2 and 3.
Gross interest-bearing debt stood at DKK 3,265
million at 30 September 2023, including lease
liabilities of DKK 1,226 million. At 30 September
2022 gross interest-bearing debt stood at DKK
1,627 million, including lease liabilities of DKK
440 million.
At 30 September 2023, the Company’s share
capital consisted of 38,291,492 shares of
DKK 2.50 each, corresponding to a share
capital of DKK 95,728,730. After disposing of
185,442 shares in the period under review in
connection with the exercise of the 2020/21
incentive programme, Matas held 172,981
treasury shares at 30 September 2023.
Cash flows
(DKKm)
Q2
2023/24
Q2
2022/23
H1
2023/24
H1
2022/23
Cash generated from operations (71.2) 145.7 180.3 290.2
Cash flow from investing activities (707.4) (85.5) (758.0) (131.4)
Free cash flow (778.6) 60.2 (577.7) 158.8
Cash flows from financing activities 971.5 (63.2) 800.4 (143.9)
Page 14 of 31
Matas Group | Interim report – H1 2023/24
Costs and operating performance
Statement of cash flows
Cash generated from operations was an
outflow of DKK 74 million in Q2 2023/24 against
an inflow of DKK 146 million in Q2 2022/23
corresponding to a decrease of DKK 220
million.
Cash generated from operations was an
inflow of DKK 178 million in H1 2023/24 against
an inflow of DKK 290 million in H1 2022/23.
For Q2 2023/24, cash flows from investing
activities were an outflow of DKK 707 million
against an outflow of DKK 85 million in Q2
2022/23. The increase of DKK 622 million was
mainly attributable to the acquisition of KICKS.
For H1 2023/24, cash flows from investing
activities were an outflow of DKK 758 million
against an outflow of DKK 131 million in H1
2022/23.
The Q2 2023/24 free cash flow was an outflow
of DKK 779 million compared to an inflow of
DKK 60 million in Q2 2022/23.
The H1 2023/24 free cash flow was an outflow
of DKK 578 million, compared to an inflow of
DKK 159 million in H1 2022/23.
Return on invested capital
The return on LTM invested capital before
tax was 8.3% at 30 September 2023 against
9.9% at 30 September 2022. ROIC before
tax excluding goodwill was 28.3% at 30
September 2023 against 50.5% at 30
September 2022.
Events after the date of the statement of
financial position
No subsequent events have occurred that
materially affect the Matas Group's financial
position.
Significant risks
Matas Group is exposed to operational risks
affecting the retail industry in general as
well as in the Health and Beauty industry. If
the current macroeconomic crisis leads to
a recession and thereby slowing down the
economic activity further, Matas Group’s
business could suffer. In addition, Matas Group
is to some extend exposed to financial risks
such as interest rate, liquidity, and credit risk.
Page 15 of 31
Matas Group | Interim report – H1 2023/24
Executive Management
Group CEO Group CFO
Board of Directors
Page 16 of 31
Matas Group | Interim report – H1 2023/24
(DKKm)
Q2
2023/24
Q2
2022/23
H1
2023/24
H1
2022/23
Revenue 1,285.4 989.2 2,435.4 2,042.7
Cost of goods sold (712.8 ) (546.3 ) (1,356.7 ) (1,133.7 )
Gross profit 572.6 442.9 1,078.7 909.0
Other external costs (152.2 ) (86.4 ) (263.6 ) (163.9 )
Staff costs (282.3 ) (196.5 ) (497.2 ) (398.4 )
Amortisation, depreciation and impairment (113.1 ) (86.7 ) (204.2 ) (175.8 )
EBIT 25.0 73.3 113.7 170.9
Share of profit or loss after tax of associates 0.1 (5.3 ) 0.2 (5.1 )
Financial income 2.7 - 2.7 -
Financial expenses (24.2 ) (8.0 ) (47.6 ) (17.2 )
Profit before tax 3.6 60.0 69.0 148.6
Tax on profit for the period (2.0 ) (13.3 ) (18.4 ) (32.8 )
Profit for the period 1.6 46.7 50.6 115.8
Other comprehensive income 21.6 - 21.6 -
Total comprehensive income 23.2 46.7 72.2 115.8
Distributed as follows:
Shareholders of Matas A/S 23.2 46.7 72.2 115.8
Minority shareholders - - - -
Earnings per share
Earnings per share, DKK 0.04 1.23 1.33 3.06
Diluted earnings per share, DKK 0.04 1.22 1.32 3.04
Statement of
comprehensive income
Page 17 of 31
Matas Group | Interim report – H1 2023/24
Statement of cash flows
(DKKm)
Q2
2023/24
Q2
2022/23
H1
2023/24
H1
2022/23
Profit before tax 3.6 60.0 69.0 148.6
Adjustment for non-cash
operating items etc.:
Amortisation, depreciation and impairment 113.1 86.7 204.2 175.8
Other non-cash operating items, net 3.4 2.2 5.4 3.7
Share of profit or loss after tax of associates (0.1 ) 5.3 (0.2 ) 5.1
Financial income (2.7 ) - (2.7 ) -
Financial expenses 24.2 8.0 47.6 17.2
Cash generated from operations
before changes in working capital 141.5 162.2 323.3 350.4
Changes in working capital (215.4 ) (16.5 ) (145.7 ) (60.2 )
Cash generated from operations (73.9 ) 145.7 177.6 290.2
Interest received 2.7 - 2.7 -
Cash flow from operating activities (71.2 ) 145.7 180.3 290.2
Acquisition of intangible assets (39.4 ) (36.1 ) (74.3 ) (68.2 )
Acquisition of property, plant
and equipment (50.9 ) (47.9 ) (66.6 ) (61.7 )
Acquisition of subsidiaries and operations (617.1 ) (1.5 ) (617.1 ) (1.5 )
Cash flow from investing activities (707.4 ) (85.5 ) (758.0 ) (131.4 )
Free cash flow (778.6 ) 60.2 (577.7 ) 158.8
(DKKm)
Q2
2023/24
Q2
2022/23
H1
2023/24
H1
2022/23
Debt raised with credit institutions 1,121.3 - 1,121.3 -
Debt settled with credit institutions - 62.6 (110.4 ) 32.7
Interest paid (21.6 ) (6.9 ) (43.5 ) (14.6 )
Repayment of lease liabilities (51.6 ) (42.3 ) (90.4 ) (85.4 )
Dividend paid (76.6 ) (76.6 ) (76.6 ) (76.6 )
Cash flow from financing activities 971.5 (63.2 ) 800.4 (143.9 )
Net cash flow from operating, investing
and financing activities 192.8 (2.9 ) 222.6 15.0
Currency adjustment 2.2 - 2.2 -
Cash and cash equivalents,
beginning of period 66.5 46.1 36.7 28.2
Cash and cash equivalents, end of period 261.5 43.2 261.5 43.2
The above cannot be derived directly from the statement of
comprehensive income and the statement of financial position.
Page 18 of 31
Matas Group | Interim report – H1 2023/24
Statement of financial position
(DKKm) 30 Sept. 2023 30 Sept. 2022 31 March 2023
ASSETS
Non-current assets
Goodwill 4,093.9 3,999.4 3,999.4
Trademarks and trade names 188.7 62.9 58.1
Other intangible assets 403.3 203.6 235.8
Total intangible assets 4,685.9 4,265.9 4,293.3
Property, plant and equipment
Lease assets 1,190.1 417.1 622.3
Land and buildings 93.4 89.0 87.5
Other fixtures and fittings, tools and equipment 79.3 74.8 65.2
Leasehold improvements 69.9 35.3 27.3
Plant in progress 206.7 51.7 59.7
Total property, plant and equipment 1,639.4 667.9 862.0
Investments in associates 0.9 1.2 1.4
Deferred tax 8.6 - -
Deposits 47.6 47.5 44.3
Other securities and equity investments 0.7 0.6 0.7
Total other non-current assets 57.8 49.3 46.4
Total non-current assets 6,383.1 4,983.1 5,201.7
Current assets
Inventories 1,755.3 999.3 911.8
Trade receivables 97.6 33.8 43.7
Corporation tax receivable 2.4 13.1 20.6
Other receivables 48.7 7.8 24.9
Prepayments 76.3 30.9 40.8
Cash and cash equivalents 261.5 43.2 36.7
Total current assets 2,241.8 1,128.1 1,078.5
Total assets 8,624.9 6,111.2 6,280.2
(DKKm) 30 Sept. 2023 30 Sept. 2022 31 March 2023
EQUITY AND LIABILITIES
Equity
Share capital 95.7 95.7 95.7
Translation reserve 21.9 0.3 0.3
Treasury share reserve (20.9 ) (43.5 ) (43.5 )
Retained earnings 3,267.2 3,142.8 3,233.5
Dividend proposed for the financial year - - 76.6
Matas A/S' share of equity 3,363.9 3,195.3 3,362.6
Minority interests 0.5 0.5 0.5
Total equity 3,364.4 3,195.8 3,363.1
Liabilities
Deferred tax 239.1 193.1 198.8
Lease liabilities 876.7 264.2 462.6
Provisions 28.0 28.1 28.0
Credit institutions 1,848.3 1,096.9 917.7
Other payables 11.9 43.1 13.0
Total non-current liabilities 3,004.0 1,625.4 1,620.1
Credit institutions 190.8 89.8 110.4
Lease liabilities 349.0 176.0 188.4
Prepayments from customers 191.4 150.3 161.4
Trade payables 1,136.9 757.7 634.1
Other payables 388.4 116.2 202.7
Total current liabilities 2,256.5 1,290.0 1,297.0
Total liabilities 5,260.5 2,915.4 2,917.1
Total equity and liabilities 8,624.9 6,111.2 6,280.2
Page 19 of 31
Matas Group | Interim report – H1 2023/24
(DKKm)
Share
capital
Translation
reserve
Treasury
share
reserve
Proposed
dividend
Retained
earnings Total
Minority
interests Total equity
Equity at 1 April 2023 95.7 0.3 (43.5 ) 76.6 3,233.5 3,362.6 0.5 3,363.1
Other comprehensive income - 21.6 - - - 21.6 - 21.6
Profit for the period - - - - 50.6 50.6 - 50.6
Total comprehensive income - 21.6 - - 50.6 72.2 - 72.2
Transactions with owners
Dividend paid - - - (76.3 ) - (76.3 ) - (76.3 )
Dividend on treasury shares - - - (0.3 ) 0.3 - - -
Exercise of incentive programme - - 22.6 - (22.6 ) - - -
Share-based payment - - - - 5.4 5.4 - 5.4
Total transactions with owners - - 22.6 (76.6 ) (16.9 ) (70.9 ) - (70.9 )
Equity at 30 September 2023 95.7 21.9 (20.9 ) - 3,267.2 3,363.9 0.5 3,364.4
Statement of changes in equity
Page 20 of 31
Matas Group | Interim report – H1 2023/24
(DKKm)
Share
capital
Translation
reserve
Treasury
share
reserve
Proposed
dividend
Retained
earnings Total
Minority
interests Total equity
Equity at 1 April 2022 95.7 0.3 (76.0 ) 76.6 3,055.2 3,151.8 0.5 3,152.3
Other comprehensive income - - - - - - - -
Profit for the period - - - - 115.8 115.8 - 115.8
Total comprehensive income - - - - 115.8 115.8 - 115.8
Transactions with owners
Dividend paid - - - (75.9 ) - (75.9 ) - (75.9 )
Dividend on treasury shares - - - (0.7 ) 0.7 - - -
Exercise of incentive programme - - 32.5 - (32.5 ) - - -
Share-based payment - - - - 3.6 3.6 - 3.6
Total transactions with owners - - 32.5 (76.6 ) (28.2 ) (72.3 ) - (72.3 )
Equity at 30 September 2022 95.7 0.3 (43.5 ) - 3,142.8 3,195.3 0.5 3,195.8
Statement of changes in equity
Page 21 of 31
Matas Group | Interim report – H1 2023/24
Notes
Note 1 – Accounting policies
This interim report is presented in accordance with IAS 34, Interim Financial Reporting as adopted by
the EU and additional disclosure requirements of the Danish Financial Statements Act.
Except as set out below, the accounting policies are consistent with the accounting policies applied in
the consolidated financial statements for 2022/23, to which reference is made.
Changes of accounting policies
Matas Group has implemented the latest IFRS amendments, which took effect on 1 April 2023 and have
been approved by the EU.
None of those amendments have significantly affected recognition and measurement, nor are they
expected to have a material effect on Matas Group in the near future.
Note 2 – Accounting estimates and judgments
The preparation of interim financial statements requires Management to make accounting judgments
and estimates that affect the application of accounting policies and recognised assets, liabilities,
income and expenses. Actual results may differ from these estimates.
The critical accounting estimates and judgments applied are consistent with those applied in the
consolidated financial statements for 2022/23.
Note 3 – Seasonality
Matas Group’s activities in the interim period were only to a limited extent affected by seasonal
fluctuations.
Note 4 – Revenue
(DKKm)
Q2
2023/24
Q2
2022/23
H1
2023/24
H1
2022/23
Retail sales, physical stores 881.7 731.9 1,676.6 1,502.3
Retail sales, online 374.6 232.8 700.5 491.3
Wholesale 29.1 24.5 58.3 49.1
Total revenue 1,285.4 989.2 2,435.4 2,042.7
In Q2 2023/24, 29.1% of Matas Group’s revenue was generated by its online channels, compared to
23.5% in the year earlier period.
Revenue break down by product groups as follows:
(DKKm)
Q2
2023/24
Q2
2022/23
H1
2023/24
H1
2022/23
High-End Beauty 491.8 315.2 863.1 675.8
Mass Beauty 415.2 345.7 826.5 718.0
Health and Wellbeing 322.5 272.5 635.5 542.0
Other 26.8 31.3 52.0 57.8
Wholesale sales etc. 29.1 24.5 58.3 49.1
Total revenue 1,285.4 989.2 2,435.4 2,042.7
Page 23 of 31
Matas Group | Interim report – H1 2023/24
Notes
Note 4 – Revenue continued
(DKKm)
Q2
2023/24
Q2
2022/23
H1
2023/24
H1
2022/23
Sale of goods 1,285.4 989.2 2,435.4 2,042.7
Sale of services - - - -
Total revenue 1,285.4 989.2 2,435.4 2,042.7
Revenue from sales of products through Matas Group stores is recognised when a store sells the
product to the customer. Payment is usually received when the customer receives the product, or, if the
customer pays by credit card, a few days later. Revenue from sales through Matas Group web shops is
recognised and payment is received when the product is sent to the customer.
A small proportion of Matas Group’s revenue is invoiced, e.g. wholesale sales, in which connection a
receivable is recognised.
For the customer loyalty programme at Matas and KICKS, a performance obligation is recognised
at the date of recognition of the sale triggering the allocation of loyalty points. The performance
obligation is measured at the estimated fair value of the points allocated and amounted to DKK 68.1
million at 30 September 2023 (30 September 2022: DKK 56.9 million). The estimated fair value is inherently
subject to some uncertainty with respect to actual future redemption and considering the flexibility of
the customer loyalty programme. Revenue is recognised when the customer uses points, usually over an
average period of three months. Customers have the option of returning products, but the volume of
returns at the end of Q2 was insignificant, as was the amount of guarantee commitments.
Note 5 – Segment information
Matas Group is segmented in two reportable segments Matas and KICKS. Management monitors the
profitability of the operating segments separately for the purpose of making decisions about resource
allocation and performance management. Segment results are measured at gross profit as presented
in the table below.
Q2 (DKKm)
Matas
2023/24
KICKS
2023/24
Total
2023/24
Matas
2022/23
KICKS
2022/23
Total
2022/23
Revenue 1,068.3 217.1 1,285.4 989.2 - 989.2
Cost of goods sold (597.8) (115.0) (712.8) (546.3) - (546.3)
Gross profit 470.5 102.1 572.6 442.9 - 442.9
H1 (DKKm)
Matas
2023/24
KICKS
2023/24
Total
2023/24
Matas
2022/23
KICKS
2022/23
Total
2022/23
Revenue 2,218.3 217.1 2,435.4 2,042.7 - 2,042.7
Cost of goods sold (1,241.7) (115.0) (1,356.7) (1,133.7) - (1,133.7)
Gross profit 976.6 102.1 1,078.7 909.0 - 909.0
Page 24 of 31
Matas Group | Interim report – H1 2023/24
Notes
Note 6 – Business combinations
Acquisitions in 2023/24
On 31 August 2023, Matas A/S acquired 100% of the shares in KICKS Group AB, including the subsidiaries
KICKS Norge AS, Skincity Sweden AB, Skincity Finland OY, Skincity Norway AS, KICKS Kosmetikkedjan OY,
Axbeautyhouse AB, Myself & Friends AB (together “KICKS”). KICKS was acquired through Matas Sverige
AB.
The total purchase price for the shares amounted to SEK 1,100 million, equivalent to DKK 692 million,
paid fully upon closing of the transaction.
Jointly, the combined entity will operate the market leading beauty and wellbeing omnichannel
retail concept in the Nordics. Through the combination, Matas and KICKS will be able to better serve
customer demand for larger assortment, new brands, access to stores, fast, convenient and inspiring
online shopping and keep a continued focus on personal and expert advisory and service. Matas and
KICKS will serve +5 million club members across the four Nordic markets with almost 500 stores, leading
web shops, +3,800 skilled colleagues, and offer a category leading portfolio of third party brands, own
brands, and services.
Management expects that the acquisition of KICKS will bring synergies of minimum DKK 100 million in
EBITDA once fully phased in by 2025/26. The synergies are expected from increased operating leverage,
customer loyalty, similarities and overlaps in business models, services and marketing strategies, as well
as IT and digitalisation agendas.
The transaction and synergies are expected to provide EPS percentage accretion by 2024/25 and
double-digit EPS percentage accretion by 2025/26.
1
Based on a SEK/DKK exchange rate of 0.6535, NOK/DKK exchange rate of 0.6582, and EUR/DKK exchange rate of 7.4528
(average of April 2023 – September 2023).
Revenue
Since the acquisition, KICKS has contributed with DKK 217.1 million in revenues. If KICKS had been
acquired at 1 April 2023, the consolidated revenue H1 2023/24 would have amounted to DKK 3,591.4
million
1
compared to actual DKK 2,435.4 million.
Acquisition and integration related costs
Total special items in H1 2023/24 amounted to DKK 60.3 million, hereof DKK 39.1 million in Q2 2023/24.
Special items are related to acquisition of KICKS, amounting to DKK 48.5 million and initiation of the
integration DKK 11.8 million.
For the periods to come, up to DKK 100 million is expected in integration costs, with the majority
expected within the first financial year.
Completion of pre-acquisition balance sheet
The purchase price allocation of the fair value of the identified assets, liabilities and contingent liabilities
is ongoing. Adjustments are therefore expected to be made to items in the opening balance included
below, including the trademark, software, and membership programs. The purchase price allocation
related to the acquisition will be completed within the 12-month period as mandated by IFRS.
Goodwill
The DKK 92 million in goodwill arising from the acquisition comes primarily from the minimum DKK 100
million in EBITDA synergies, as well as from the expected approximately DKK 40 million standalone
improvement to KICKS’ EBITDA, from already invested and executed initiatives. None of the goodwill is
tax deductible.
Page 25 of 31
Matas Group | Interim report – H1 2023/24
Notes
Note 6 – Business combinations continued
Purchase Price Allocation
(DKKm) 30 Sept. 2023 30 Sept. 2022
Cash 75.1 -
Trade receivables 29.6 -
Other receivables and deposits 30.2 -
Prepaid expenses and deferred income 16.5 -
Inventories 626.0 -
Deposits 8.3 -
Plant and equipment and right-of-use assets 684.2 -
Intangible assets, software 87.4 -
Intangible assets, trademarks 131.9 -
Intangible assets, member program 68.3 -
Assets acquired 1,757.5 -
Trade payables (287.8) -
Credit institutions (100.7) -
Lease liability (504.8) -
Deferred tax liability (39.3) -
Other payables (130.2) -
Prepaid income and deferred expenses (94.4) -
Liabilities assumed (1,157.2) -
Net identifiable assets acquired 600.3 -
Goodwill arising on acquisitions 91.9 5.8
Purchase consideration 692.2 5.8
Outflow of cash to acquire subsidiary, net of cash acquired
Cash consideration (692.2) (5.8)
Less balances acquired 75.1 -
Contingent liabilities - 4.3
Net outflow of cash - investing activities (617.1) (1.5)
Acquisitions in 2022/23
Having acquired the remaining 60% of the shares in Miild A/S at 30 September 2022, Matas A/S now
owns all the shares in the company.
Miild A/S is a Danish beauty brand focusing on allergy-friendly cosmetics.
The consideration amounts to DKK 1.5 million in cash, to which should be added a potential earn-out
payment of an estimated DKK 4.3 million. The provisional purchase price allocation shows values added
on acquisition in the form of goodwill of DKK 5.8 million.
Transaction costs in the amount of DKK 0.8 million were incurred in connection with the acquisition. The
transaction costs have been recognised under other external costs for H1 2022/23. Other than this, the
acquisition did not affect activities in the first half of 2022/23.
Revenue and profit contribution
Revenue and profit for the first half of 2022/23, calculated as if Miild A/S had been acquired at 1 April
2022, amounted to DKK 3.7 million and DKK 0.7 million, respectively.
Acquisitions after the reporting period
No acquisition took place after the reporting period
Page 26 of 31
Matas Group | Interim report – H1 2023/24
Notes
Note 7 – Leases
Matas Group's lease assets are as follows:
(DKKm) 30 Sept. 2023 30 Sept. 2022 31 March 2023
Store leases 1,005.0 363.2 571.0
Administration and warehouse buildings etc. 179.0 50.6 45.4
Cars and other leases 6.1 3.3 5.9
Total lease assets 1,190.1 417.1 622.3
An addition of DKK 513.2 million was recognised as right-of-use assets in connection with the acquisition
of KICKS 31 August 2023, cf. note 5. Further an addition of DKK 122 million was recognised in September
primarily regarding KICKS' central warehouse in Rosersberg Stockholm.
Matas Group’s lease liabilities are as follows:
(DKKm) 30 Sept. 2023 30 Sept. 2022 31 March 2023
Non-current liabilities 876.7 264.2 462.6
Current liabilities 349.0 176.0 188.4
Total lease liabilities 1,225.7 440.2 651.0
An addition of DKK 504.8 million was recognised as lease liabilities in connection with the acquisition of
KICKS 31 August 2023, cf. note 5.
Most store leases in Denmark are evergreen contracts as defined in the Danish Business Lease Act and
are consequently subject to terms of notice of 3-12 months. Commercial renting of shops etc. in the
other Nordic countries are not similar to the practice in Denmark, as extensions take place at fixed
intervals and with fixed deadlines for termination/extension. This has been accounted for in recognising
the KICKS leases.
Depreciation as set out below is recognised in the statement of comprehensive income:
(DKKm)
H1
2023/24
H1
2022/23
Store leases etc. 87.4 81.0
Administration and warehouse buildings etc. 9.6 4.8
Cars and other leases 1.0 0.8
Total depreciation of lease assets 98.0 86.6
Lease payments in the amount of DKK 107.1 million were made in H1 2023/24 (H1 2022/23: DKK 90.9 million).
Interest in the amount of DKK 16.7 million was expensed in H1 2023/24 (H1 2022/23: DKK 4.2 million).
Matas Group is the lessee of a limited number of premises. For some of these leases, the rent is fully or
partially based on revenue.
Revenue-based rent is not comprised by IFRS 16 and is therefore not included in the above tables.
Revenue-based rent is, as before, recognised under other external costs and amounted to DKK 4.7
million in H1 2023/24 (H1 2022/23: DKK 1.8 million).
Page 27 of 31
Matas Group | Interim report – H1 2023/24
Notes
Note 8 – Other payables
(DKKm) 30 Sept. 2023 30 Sept. 2022 31 March 2023
Other non-current payables
Contingent consideration and
deferred purchase price 11.9 43.1 13.0
Total other non-current payables 11.9 43.1 13.0
Other current payables
VAT payable 50.2 17,1 41.0
Holiday pay obligations etc. 112.3 67,9 65.1
Pay-related liabilities
(A tax/social security contributions) 171.1 30,1 52.8
Contingent consideration and deferred purchase price 34.8 - 33.4
Other creditors 20.0 1.1 10.4
Total other current payables 388.4 116,2 202.7
An addition of DKK 130.2 million was recognised as other payables in connection with the acquisition of
KICKS 31 August 2023, cf. note 5.
Note 9 – Transactions with related parties
Pursuant to Matas A/S’ Remuneration Policy, a total of 185,442 Performance Share Units (PSUs) related to
the Company’s long-term incentive programme (LTIP) for 2020/21 were vested at 23 June 2023.
PSUs were vested at 150% of the original grant. Based on a closing price at 22 June 2023 of DKK 83.5, the
total value of vested PSUs amounted to DKK 15.5 million.
On 30 June 2023, a total of 158,696 PSUs have been granted related to the long-term incentive
programme for 2023/24. A total of 61,726 PSUs were granted to Group CEO Gregers Wedell-Wedellsborg
and a total of 36,307 PSUs have been granted to Group CFO Per Johannesen Madsen.
Note 10 – Subsequent events
No subsequent events have occurred that materially affect the Matas Group's financial position.
Page 28 of 31
Matas Group | Interim report – H1 2023/24
(DKKm)
Q2
2023/24
Q1
2023/24
Q4
2022/23
Q3
2022/23
Q2
2022/23
Statement of
comprehensive income
Revenue 1,285.4 1,150.0 1,150.7 1,396.2 989.2
Gross profit 572.6 506.1 484.5 620.9 442.9
EBITDA 138.1 179.8 161.6 295.9 160.0
EBIT 25.0 88.7 50.8 201.4 73.3
Net financials (21.4) (23.3) (15.5) (12.6) (13.3)
Profit before tax 3.6 65.4 35.4 188.8 60.0
Profit for the period 1.6 49.0 17.6 147.3 46.7
Statement of financial position
Total assets 8,624.9 6,378.0 6,280.2 6,149.0 6,111.2
Total equity 3,364.4 3,337.4 3,363.1 3,345.2 3,195.8
Net working capital 261.2 (50.0) 23.0 (119.4) 47.6
Net interest-bearing debt 3,003.3 1,482.8 1,642.4 1,235.0 1,583.7
Statement of cash flows
Cash flow from operating activities (71.2). 251.5 (45.2) 433.9 145.7
Cash flow from investing activities (707.4) (50.6) (72.9) (51.5) (85.5)
Free cash flow (778.6) 200.9 (118.1) 382.4 60.2
Net cash flow from operating,
investing and financing activities 192.8 29.8 (94.9) 88.5 (2.9)
(DKKm)
Q2
2023/24
Q1
2023/24
Q4
2022/23
Q3
2022/23
Q2
2022/23
Key performance indicators
Number of transactions (millions) 6.6 6.0 5.5 6.8 5.4
Average basket size (DKK) 182.7 188.2 182.3 202.8 179.4
Total retail floor space
(thousands of square metres) 104.1 53.7 53.3 53.7 53.5
Avg. revenue per square metre
(DKK thousands) - LTM 82.7 83.6 81.9 80.6 80.3
Organic growth 8.0% 9.2% 8.3% 1.3% 1.6%
Adjusted figures
EBITDA 138.1 179.8 161.6 295.9 160.0
Special items 39.1 21.1 - - -
EBITDA before special items 177.2 200.9 161.6 295.9 160.0
Depreciation and
amortisation of software (96.2) (81.2) (97.8) (81.9) (75.3)
EBITA 81.0 119.7 63.8 214.0 84.7
Adjusted profit after tax 47.0 77.9 27.8 157.1 55.6
Gross margin 44.5% 44.0% 46.1% 44.5% 44.8%
EBITDA margin 10.7% 15.6% 15.4% 21.2% 16.2%
EBITDA margin
before special items 13.8% 17.5% 15.4% 21.2% 16.2%
EBITA margin 6.3% 10.4% 6.1% 15.3% 8.6%
EBIT margin 1.9% 7.7% 4.8% 14.4% 7.4%
Interim financial highlights
Page 29 of 31
Matas Group | Interim report – H1 2023/24
Forward-looking statements
This interim report contains statements relating to the future, including statements
regarding Matas Group’s future operating results, financial position, cash flows, business
strategy and future targets. Such statements are based on Management’s reasonable
expectations and forecasts at the time of release of this report. Forward-looking
statements are subject to risks and uncertainties and a number of other factors, many
of which are beyond Matas Group’s control. This may have the effect that actual results
may differ significantly from the expectations expressed in the report. Without being
exhaustive, such factors include general economic and commercial factors, including
market and competitive conditions, supplier issues and financial and regulatory
issues, IT failures as well as any effects of healthcare measures that are not specifically
mentioned above.
Financial calendar 2023/24
The financial calendar for the
remaining part of the 2023/24
financial year is as follows:
9 January 2024
Trading update for Q3 2023/24
2 February 2024
Interim report – Q3 2023/24
7 May 2024
Deadline for the Company’s
shareholders to submit in writing
requests for specific proposals to
be included on the agenda for the
annual general meeting
28 May 2024
Annual report 2023/24
19 June 2024
Annual general meeting for 2023/24
Contacts
Gregers Wedell-Wedellsborg
Group CEO, phone +45 48 16 55 55
Per Johannesen Madsen
Group CFO, phone +45 48 16 55 55
Klaus Fridorf
Head of Communication,
phone +45 61 20 19 97
John Bäckman
Head of Investor Relations & Treasury,
phone +45 22 43 12 54
Company information
Matas A/S
Rørmosevej 1
3450 Allerød,
Denmark
Phone: +45 48 16 55 55
www.matas.dk
investor.matas.dk
Company reg. (CVR) no. 27 52 84 06
Additional information
Page 30 of 31
Matas Group | Interim report – H1 2023/24
Design & production: Noted
Matas A/S
Rørmosevej 1
3450 Allerød
Phone: +45 48 16 55 55
www.matas.dk
investor.matas.dk
CVR no.: 27 52 84 06