Company announcement no. 11 2023/24, Allerød, 16 August 2023
Interim report
Q1 2023/24
(1 April – 30 June 2023)
Customer traffic and broader assortment
drive revenue and earnings growth
Webcast
Matas will host a webcast for investors and
analysts on Wednesday, 16 August at 11:00 a.m.
CEST. 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/q1-
report-2023
Contents
3 Customer traffic and broader
assortment drive revenue and
earnings growth
4 Q1 2023/24 highlights
5 Key financials
6 Management’s review
8 Q1 2023/24 performance
10 Costs and operating performance
12 Statement by the Board of Directors
and the Executive Management
13 Statement of
comprehensive income
14 Statement of cash flows
15 Statement of financial position
16 Statement of changes in equity
18 Notes
23 Interim financial highlights
24 Additional information
Page 2 of 25
Matas | Interim report – Q1 2023/24
• Matas generated a total revenue of DKK 1,150
million in Q1 2023/24 corresponding to a year-
on-year increase of 9.2% from DKK 1,054 million
in Q1 2022/23.
• Gross margin was 44.0% in the quarter, in line
with expectations and last year.
• EBITDA before special items came to DKK 201
million in Q1 2023/24 compared to DKK 192
million last year, and the EBITDA margin before
special items was 17.5% in the quarter against
18.2% last year.
• Profit for the period amounted to DKK 49 million
after tax compared to DKK 69 million last year,
impacted by higher interest costs and special
items related to the expected acquisition of
Kicks Group AB.
• Based on the strong revenue development in
Q1 2023/24 - as well as current trading, Matas
upgrades its expectations to revenue growth
for the financial year 2023/24. Revenue growth
is now expected to be in the range of 4-7%
(previously 3-6%). Expectation to EBITDA margin
before special items is maintained at around
17%, as well as expectations to CAPEX, excl.
M&A, is maintained at DKK 425-450 million incl.
DKK 250 million to Matas Logistics Center.
Customer traffic and broader assortment
drive revenue and earnings growth
“We are very pleased to see growth across all our channels, with stores growing 3%
for the quarter and our online business with even higher momentum delivering 26%
growth vs last year. Our customers continue to shop more frequently with Matas,
and supported by our assortment expansion, we see strong growth both within Mass
Beauty as well as Health and Wellbeing. We introduced 59 new brands and thousands
of products and increased our inventories marginally to ensure faster delivery and
convenience for our customers.”
Gregers Wedell-Wedellsborg, CEO of Matas A/S
Customer transactions
Millions
Revenue
DKKm
EBITDA before special items
DKKm
Page 3 of 25
Matas | Interim report – Q1 2023/24
Q1 2023/24 highlights
• Matas generated a total revenue of DKK
1,150 million in Q1 2023/24 corresponding
to a year-on-year increase of 9.2% from
DKK 1,054 million in Q1 2022/23. Retail sales
increased by 8.9%, while underlying sales
increased by 8.4%.
• Online sales grew by 26.1%. Overall, online
sales accounted for 28.3%. Physical stores
reported sales up by 3.2% compared to Q1
last year.
• Footfall was strong, and the number of
transactions increased by 8.0% to 6.0 million,
and the average basket size grew by 0.6% to
DKK 188 per transaction.
• Gross profit for Q1 2023/24 amounted to DKK
506 million, up from DKK 466 million in Q1
2022/23. The gross margin was 44.0%, down
from 44.2% in Q1 2022/23 due to product mix
and assortment expansion.
• Other external costs amounted to DKK 111
million in Q1 2023/24, up from DKK 78 million
in Q1 2022/23. Excluding special items, other
external cost increased by DKK 18 million
compared to Q1 2022/23, primarily driven
by increase in marketing and logistic cost
driven by online growth.
• EBITDA before special items came to DKK
201 million up from DKK 192 million in Q1
2022/23 resulting in an EBITDA margin before
special items of 17.5% in Q1 2023/24.
• The total amortisation, depreciation and
impairment charges were up by DKK 2
million to DKK 91 million in Q1 2023/24.
• Profit for the period amounted to DKK 49
million after tax against DKK 69 million in Q1
2022/23, impacted by the higher interest
costs an d special items related to the
expected acquisition of Kicks Group AB.
• Free cash flow was an inflow of DKK 201
million in Q1 2023/24, compared with an
inflow of DKK 99 million in Q1 2022/23.
Page 4 of 25
Matas | Interim report – Q1 2023/24
Key financials
(DKKm)
Q1
2023/24
Q1
2022/23 Growth (%)
Statement of comprehensive income
Revenue 1,150.0 1,053.5 9.2
Gross profit 506.1 466.1 8.6
EBITDA 179.8 186.7 (3.7)
EBIT 88.7 97.6 (9.1)
Net financials (23.3) (9.0) 158.9
Profit before tax 65.4 88.6 (26.2)
Profit for the period after tax 49.0 69.1 (29.1)
Special items 21.1 4.8
EBITDA before special items 200.9 191.5 5.0
Adjusted profit after tax 77.9 81.6 (4.6)
Statement of financial position
Total assets 6,378.0 6,054.7
Total equity 3,337.4 3,147.0
Net working capital (50.0) 31.5
Net interest-bearing debt 1,482.8 1,561.7
Statement of cash flows
Cash flow from operating activities 251.5 144.5
Cash flow from investing activities (50.6) (45.9)
Free cash flow 200.9 98.6
(DKKm)
Q1
2023/24
Q1
2022/23
Ratios
Revenue growth 9.2% 3.2%
Underlying like-for-like revenue growth 8.4% 2.9%
Gross margin 44.0% 44.2%
EBITDA margin 15.6% 17.7%
EBITDA margin before special items 17.5% 18.2%
EBIT margin 7.7% 9.3%
Cash conversion 109.5% 53.2%
Earnings per share, DKK 1.29 1.83
Diluted earnings per share, DKK 1.28 1.81
Share price, end of period, DKK 100.6 74.1
ROIC before tax including goodwill 9.6% 10.0%
ROIC before tax excluding goodwill 47.6% 51.0%
Net working capital as a percentage of LTM revenue (1.1)% 0.7%
Investments as a percentage of revenue 4.4% 4.4%
Net interest-bearing debt/EBITDA before special items 1.8 1.9
Number of transactions (millions)* 6.0 5.5
Average basket size (DKK)* 188 187
Number of stores 261 260
Club Matas members (millions) 1.9 1.8
Club Matas Plus members (thousands) 77.1 57.6
Average number of employees (FTE) 2,054 2,071
* For definitions of key financials, see page 95 of the 2022/23 Annual Report.
Page 5 of 25
Matas | Interim report – Q1 2023/24
Management’s
review
Strategic initiatives in Q1 2023/24
In August 2021, Matas launched its five-year
Growing Matas Group strategy. Based on
the purpose ‘Health and Beauty for Life’, the
Group will grow by selling more to existing
customers – especially the 1.9 million Club
Matas members –driven by an expansion of
the assortment.
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
Group 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 261 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 and in January 2023 the
web sites matas.no and matas.se were launched.
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 6 of 25
Matas | Interim report – Q1 2023/24
Continued strong progress
across the seven strategic
tracks of the Growing Matas
Group strategy during Q1
2023/24
Commercial: Expand assortment
• Continued the fast assortment expansion
with addition of 59 new brands online during
Q1.
• The more than 130 new brands launched in
2022/23 contribute to approximately half of
the Q1 revenue growth.
E-commerce: Extend market leadership
• Revenue growth of 26%, driven mainly
by the strong performance of matas.dk
that continues to increase in number of
transactions.
• Matas.dk sustained its position as the
second most frequently visited web shop in
Denmark in second quarter of 2023.
• In May 2023, Matas.dk won two ecommerce
awards by the Danish Chamber of
Commerce for “Best B2C company” and
“Best ecommerce app”.
Connected retail: Consolidate
and connect stores
• The “endless aisles” revenue from the stores
(sale of products from matas.dk through the
stores) grew by 28% during the quarter as a
direct effect of a strong focus by the staff,
implementation of customer facing screens
in almost all stores, and the significantly
expanded assortment online.
• The two new store openings in Søborg
Hovedgade and on Købmagergade in
Central Copenhagen (relocation) have
had a succesfull start, while two more new
openings are in the pipeline before Christmas.
• Additional 180 Mobile POS have been
implemented in selected stores in June,
doubling total number of mobile POS
terminals to improve customer satisfaction,
upsell opportunities, sign-up of Club Matas
Plus members and soon the ability to sell
through “endless aisles” directly on the
mobile POS.
Brands: Grow portfolio of House Brands
• Nilens Jord has expanded its product range
with the launch of its nail collection (84
shades), Brow Laminizers and a completely
new men’s skincare line to be launched in
August.
Management’s review
• Increased sales of private label brands and
Niles Jord by DKK 24 million to 18.3% of retail
revenues.
Logistics: Automate logistics
• The construction of Matas Logistics Center
(MLC) is progressing according to the
timeline with preparation of the land during
July and August.
• The existing web shop facilities in Humlebæk
continue to offer adequate room for further
assortment expansion in the years to come.
Internationalisation: Geographical
expansion
• Selected products from Matas Striberne,
Matas Natur and My Moments are now
available at 225 doors in Germany, while
Nilens Jord has been listed in some of the
same stores and will be available in 65 doors
by August 2023.
• The recently launched web shops matas.no
and matas.se have been off to a good start
with high customer satisfaction and with
more than 16,000 new Club Matas loyalty
members in Norway and Sweden.
• The acquisition of Kicks Group is expected
to reach closing by end of August 2023.
ESG/CSR: Impact society
in a positive way
• During Q1, a strong focus has been put on
the social aspect with a dedicated project
on mental health in collaboration with True
North. 100 store employees participated in a
three-day camp focusing on mental health
and wellbeing.
Page 7 of 25
Matas | Interim report – Q1 2023/24
69
28
3
33
37
28
2
Q1 2023/24 performance
Revenue
Matas generated total revenue of DKK 1,150
million in Q1 2023/24, a year-on-year increase
of 9.2% from DKK 1,054 million in Q1 2022/23.
Retail sales were up by 8.9% to DKK 1,121
million, while underlying like-for-like sales grew
by 8.4%.
While revenue grew in all main categories,
Health and Wellbeing was the primary growth
driver in both absolute and relative terms.
Revenue increased across all sales channels.
Growing sales by DKK 68 million, online
recorded the largest absolute and relative
increase.
Footfall was strong, and the number of
transactions increased by 8.0% to 6.0 million.
The average basket size increased by 0.6% to
DKK 188 per transaction.
Revenue by categories and sales channels
(DKKm)
Q1
2023/24
Q1
2022/23 Growth (%)
Categories
High-End Beauty 371.4 360.5 3.0
Mass Beauty 411.3 372.4 10.5
Health and Wellbeing 313.0 269.5 16.1
Other 25.2 26.5 (4.9)
Retail revenue 1,120.9 1,028.9 8.9
Retail revenue by category (%)
High-End Beauty 33.1 35.0
Mass Beauty 36.7 36.2
Health and Wellbeing 27.9 26.2
Other 2.3 2.6
Sales channels
Physical stores 795.0 770.5 3.2
Online 325.9 258.4 26.1
Wholesale 29.1 24.6 18.5
Total revenue 1,150.0 1,053.5 9.2
Revenue by sales channel (%)
Physical stores 69.1 73.1
Online 28.3 24.5
Wholesale 2.5 2.3
Revenue by sales channel (%)
Online
Physical stores
Wholesale
2023/24
Q1
Retail revenue by category (%)
High-End Beauty
Other
Mass Beauty
Health and Wellbeing
2023/24
Q1
Page 8 of 25
Matas | Interim report – Q1 2023/24
Categories
Matas 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 the 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 June 2023, Matas consisted of 261
physical stores – 260 stores in Denmark
and one on the Faroe Islands. In addition,
Matas has one associated store in
Greenland. 69% of Q1 2023/24 revenue
was generated by Matas’ physical stores.
In addition, Matas was present online
through matas.dk, matas.no, matas.
se and several web shops operated
by Firtal of which the most important
ones are helsebixen.dk, jala-helsekost.
dk and made4men.dk. 28% 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 also includes
value adjustments of Club Matas points.
Wholesale accounted for 3% of revenue in
the quarter.
Private labels cover the following brands:
Matas Cosmetics, Matas Materiel, Matas
MediCare, Matas Natur, Matas Sportscare,
Matas Striberne, Miild, My Moments by
Matas, Nilens Jord, Skønt by
Matas and Plasir.
Q1 2023/24 performance
Performance by category
High-End Beauty grew sales by 3.0%
recording higher sales of fragrances. Sales of
professional haircare products recorded high
growth and maintained the strong momentum
from 2022/23.
Mass Beauty grew sales by 10.5% supported
mainly by higher skincare sales, and a sunny
first quarter also resulted in higher sales of
sunscreen products.
The beauty segment accounted for 69.8% of
the retail revenue compared to 71.2% in Q1
2022/23.
Health and Wellbeing grew sales by 16.1%.
Sales of dermatological and special skincare
products recorded ongoing significant growth
during the quarter.
Overall private label sales, including Nilens
Jord and Miild, accounted for 18.3% of the
revenue generated by Matas stores and
matas.dk in Q1 2023/24, an increase of 0.9
percentage points compared to Q1 2022/23.
Performance by sales channel
Matas’ physical stores grew revenue by 3.2% or
DKK 24 million to DKK 795 million. The number
of Matas stores at 30 June 2023 amounted to
261, equal to the number of stores at 30 June
2022.
Online sales were up by 26.1%. Overall, online
sales accounted for 28.3% of Q1 2023/24
revenue against 24.5% in Q1 2022/23.
Wholesale grew by DKK 4.6 million to DKK 29
million, driven by an increase in wholesale
from Web Sundhed.
Page 9 of 25
Matas | Interim report – Q1 2023/24
Costs
(DKKm)
Q1
2023/24
Q1
2022/23 Growth
Other external costs 111.4 77.5 43.7%
- of which special items 21.1 4.8
As a percentage of revenue 9.7% 7.4%
Staff costs 214.9 201.9 6.4%
- of which special items 0.0 0.0
As a percentage of revenue 18.7% 19.2%
Costs and operating performance
Gross profit for Q1 2023/24 amounted to DKK
506 million compared to DKK 466 million in Q1
2022/23.
The gross margin for Q1 2023/24 was 44.0%,
down from 44.2% due to product mix and
higher online share.
Adjusted for special items, overall costs (other
external costs and staff costs) amounted to
26.5% of revenue in Q1 2023/24 against 26.1%
the year before. Reported costs in the quarter
amounted to 28.4% of revenue and were up
by DKK 47 million compared to Q1 2022/23.
Other external costs amounted to DKK 111
million in Q1 2023/24 corresponding to an
increase of DKK 34 million compared to DKK
78 million in Q1 2022/23. Other external costs
included special items of DKK 21 million in Q1
2023/24 related to the expected acquisition
of Kicks Group AB. Q1 2022/23 special items
amounted to DKK 5 million.
Adjusted for special items, other external
costs increased by DKK 18 million attributable
to higher marketing and logistic costs as a
result of the continuing digital growth and the
execution of Growing Matas Group, including
the internationalisation of Matas’ house
brands (brands owned by the Group), and the
recently launched web shops in Norway and
Sweden.
Other external costs without special items
accounted for 7.8% of revenue in Q1 2023/24
against 6.9% the year before. Reported other
external costs accounted for 9.7% of revenue
in Q1.
Q1 2023/24 staff costs amounted to DKK 215
million, an increase of DKK 13 million from
DKK 202 million in the year-earlier period.
No special items were reported in either Q1
2023/24 or Q1 2022/23.
The increase in staff costs was mainly related
to salary increases following the union
agreements.
Staff costs accounted for 18.7% of revenue
in Q1 2023/24, against 19.2% in the
corresponding period 2022/23.
At 30 June 2023, Matas Group had 2,054
full-time employees, against 2,071 at 30 June
2022.
EBITDA before special items came to DKK 201
million, and the EBITDA margin before special
items was 17.5% against 18.2% in Q1 2022/23.
Q1 2023/24 reported EBITDA amounted to
DKK 180 million against DKK 187 million in Q1
2022/23.
Amortisation, depreciation
and impairment
The total amortisation, depreciation and
impairment charges were up by DKK 2 million
to DKK 91 million in Q1 2023/24.
Net financials
Net financial expenses increased by DKK 14
million to DKK 23 million in Q1 2023/24 due to
interest rate increase.
Profit for the period
The effective tax rate was 25.1% in Q1 2023/24,
equivalent to a tax expense of DKK 16 million.
Profit for the period was DKK 49 million after
tax against DKK 69 million in Q1 2022/23.
Statement of financial position
Total assets amounted to DKK 6,378 million at
30 June 2023, up from DKK 6,055 million at 30
June 2022.
Non-current assets increased by DKK 194
million, which is mainly due to appreciation of
leased assets and increased costs related to
the construction of Matas Logistics Center.
Page 10 of 25
Matas | Interim report – Q1 2023/24
Costs and operating performance
Current assets totalled DKK 1,197 million, a
year-on-year increase of DKK 129 million.
Inventories amounted to DKK 1.006 million
at 30 June 2023 an increase of DKK 77
million compared to the end of Q1 2022/23.
Inventories accounted for 21.9% of LTM
revenue at 30 June 2023 compared to 21.2%
at 30 June 2022. The increase is primarely
related to an increase in assortment,
increase in private label, higher inventory for
safeguarding the online business.
Trade receivables increased by DKK 34 million
to DKK 65 million partly driven by the ongoing
activities in Web Sundhed. Trade payables
increased by DKK 167 million year-on-year
driven by the increase in inventories.
Net working capital excluding deposits was
negative DKK 50 million at 30 June 2023
against DKK 31 million at 30 June 2022.
Cash and cash equivalents amounted to DKK
67 million, up from DKK 46 million the year
before.
Equity amounted to DKK 3,337 million at 30
June 2023 compared to DKK 3,147 million at 30
June 2022.
Net interest-bearing debt amounted to DKK
1,483 million at 30 June 2023, a year-on-year
decline of DKK 79 million – equalling 1.8 times
LTM EBITDA before special items, which is
slighty below the long-term target between 2
and 3.
Gross interest-bearing debt amounted to DKK
1,549 million at 30 June 2023, including lease
liabilities of DKK 631 million. At 30 June 2022,
gross interest-bearing debt amounted to DKK
1,608 million, including lease liabilities of DKK
483 million.
At 30 June 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 June 2023.
Statement of cash flows
Cash generated from operations was an
inflow of DKK 252 million in Q1 2023/24 against
an inflow of DKK 145 million in Q1 2022/23
corresponding to an increase of DKK 107
million attributable to a more favourable
working capital development than in Q1
2022/23.
For Q1 2023/24, cash flows from investing
activities were an outflow of DKK 51 million
against an outflow of DKK 46 million in Q1
2022/23.
The Q1 2023/24 free cash flow was an inflow of
DKK 201 million, compared to an inflow of DKK
99 million in Q1 2022/23.
Return on invested capital
The return on LTM invested capital before
tax was 9.6% at 30 June 2023 against 10.0%
at 30 June 2022. ROIC before tax excluding
goodwill was 47.6% at 30 June 2023 against
51.0% at 30 June 2022.
Events after the date of the statement of
financial position
Matas paid a dividend of DKK 2.00 per share
on 4 July.
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’ business
could suffer. In addition, Matas is to some
extend exposed to financial risks such as
interest rate, liquidity, and credit risk.
Cash flows
(DKKm)
Q1
2023/24
Q1
2022/23
Cash generated from operations 251.5 144.5
Free cash flow 200.9 98.6
Free cash flow net of acquisitions 200.9 98.6
Cash flows from financing activities (171.1) (80.7)
Page 11 of 25
Matas | Interim report – Q1 2023/24
Executive Management
Board of Directors
Page 12 of 25
Matas | Interim report – Q1 2023/24
(DKKm)
Q1
2023/24
Q1
2022/23
Revenue 1,150.0 1,053.5
Cost of goods sold (643.9 ) (587.4 )
Gross profit 506.1 466.1
Other external costs (111.4 ) (77.5 )
Staff costs (214.9 ) (201.9 )
Amortisation, depreciation and impairment (91.1 ) (89.1 )
EBIT 88.7 97.6
Share of profit or loss after tax of associates 0.1 0.2
Financial income 0.0 0.0
Financial expenses (23.4 ) (9.2 )
Profit before tax 65.4 88.6
Tax on profit for the period (16.4 ) (19.5 )
Profit for the period 49.0 69.1
Total comprehensive income 49.0 69.1
Distributed as follows:
Shareholders of Matas A/S 49.0 69.1
Minority shareholders - -
Earnings per share
Earnings per share, DKK 1.29 1.83
Diluted earnings per share, DKK 1.28 1.81
Statement of
comprehensive income
Page 13 of 25
Matas | Interim report – Q1 2023/24
Statement of cash flows
(DKKm)
Q1
2023/24
Q1
2022/23
Profit before tax 65.4 88.6
Adjustment for non-cash operating items etc.:
Amortisation, depreciation and impairment 91.1 89.1
Other non-cash operating items, net 2.0 1.5
Share of profit or loss after tax of associates (0.1 ) (0.2 )
Financial income - -
Financial expenses 23.4 9.2
Cash generated from operations
before changes in working capital 181.8 188.2
Changes in working capital 69.7 (43.7 )
Cash generated from operations 251.5 144.5
Interest received 0.0 0.0
Cash flow from operating activities 251.5 144.5
Acquisition of intangible assets (34.9 ) (32.1 )
Acquisition of property, plant and equipment (15.7 ) (13.8 )
Cash flow from investing activities (50.6 ) (45.9 )
Free cash flow 200.9 98.6
(DKKm)
Q1
2023/24
Q1
2022/23
Debt settled with credit institutions (110.4 ) (29.9 )
Interest paid (21.9 ) (7.7 )
Repayment of lease liabilities (38.8 ) (43.1 )
Cash flow from financing activities (171.1 ) (80.7 )
Net cash flow from operating, investing and financing activities 29.8 17.9
Cash and cash equivalents, beginning of period 36.7 28.2
Cash and cash equivalents, end of period 66.5 46.1
The above cannot be derived directly from the statement of
comprehensive income and the statement of financial position.
Page 14 of 25
Matas | Interim report – Q1 2023/24
Statement of financial position
(DKKm) 30 June 2023 30 June 2022 31 March 2023
ASSETS
Non-current assets
Goodwill 3,999.4 3,993.6 3,999.4
Trademarks and trade names 55.7 65.3 58.1
Other intangible assets 237.5 191.7 235.8
Total intangible assets 4,292.6 4,250.6 4,293.3
Property, plant and equipment
Lease assets 599.8 460.4 622.3
Land and buildings 86.1 88.8 87.5
Other fixtures and fittings, tools and equipment 61.9 82.8 65.2
Leasehold improvements 28.0 37.5 27.3
Plant in progress 63.9 11.6 59.7
Total property, plant and equipment 839.7 681.1 862.0
Investments in associates 0.7 7.5 1.4
Deposits 47.6 47.0 44.3
Other securities and equity investments 0.6 0.6 0.7
Total other non-current assets 48.9 55.1 46.4
Total non-current assets 5,181.2 4,986.8 5,201.7
Current assets
Inventories 1,006.2 928.9 911.8
Trade receivables 64.7 30.9 43.7
Corporation tax receivable 4.8 26.3 20.6
Other receivables 12.6 3.2 24.9
Prepayments 42.0 32.5 40.8
Cash and cash equivalents 66.5 46.1 36.7
Total current assets 1,196.8 1,067.9 1,078.5
Total assets 6,378.0 6,054.7 6,280.2
(DKKm) 30 June 2023 30 June 2022 31 March 2023
EQUITY AND LIABILITIES
Equity
Share capital 95.7 95.7 95.7
Translation reserve 0.3 0.3 0.3
Treasury share reserve (20.9 ) (43.5 ) (43.5 )
Retained earnings 3,261.8 3,094.0 3,233.5
Dividend proposed for the financial year - - 76.6
Matas A/S' share of equity 3,336.9 3,146.5 3,362.6
Minority interests 0.5 0.5 0.5
Total equity 3,337.4 3,147.0 3,363.1
Liabilities
Deferred tax 198.1 193.2 198.8
Lease liabilities 438.6 306.6 462.6
Provisions 28.0 28.1 28.0
Credit institutions 918.1 996.5 917.7
Other payables 13.5 38.7 13.0
Total non-current liabilities 1,596.3 1,563.1 1,620.1
Credit institutions - 128.0 110.4
Lease liabilities 192.6 176.7 188.4
Prepayments from customers 159.2 153.2 161.4
Trade payables 846.8 680.1 634.1
Dividend 76.2 75.9 -
Other payables 169.5 130.7 202.7
Total current liabilities 1,444.3 1,344.6 1,297.0
Total liabilities 3,040.6 2,907.7 2,917.1
Total equity and liabilities 6,378.0 6,054.7 6,280.2
Page 15 of 25
Matas | Interim report – Q1 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 - - - - - - - -
Profit for the period - - - - 49.0 49.0 - 49.0
Total comprehensive income - - - - 49.0 49.0 - 49.0
Transactions with owners
Dividend transferred to other payables - - - (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 - - - - 2.0 2.0 - 2.0
Tax, share-based payment - - - - (0.4 ) (0.4 ) - (0.4 )
Total transactions with owners - - 22.6 (76.6 ) (20.7 ) (74.7 ) - (74.7 )
Equity at 30 June 2023 95.7 0.3 (20.9 ) - 3,261.8 3,336.9 0.5 3,337.4
Statement of changes in equity
Page 16 of 25
Matas | Interim report – Q1 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 - - - - 69.1 69.1 - 69.1
Total comprehensive income - - - - 69.1 69.1 - 69.1
Transactions with owners
Dividend transferred to other payables - - - (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 - - - - 1.5 1.5 - 1.5
Total transactions with owners - - 32.5 (76.6 ) (30.3 ) (74.4 ) - (74.4 )
Equity at 30 June 2022 95.7 0.3 (43.5 ) - 3,094.0 3,146.5 0.5 3,147.0
Statement of changes in equity
Page 17 of 25
Matas | Interim report – Q1 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 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 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
The Group’s activities in the interim period were only to a limited extent affected by seasonal
fluctuations.
Note 4 – Revenue
(DKKm)
Q1
2023/24
Q1
2022/23
Retail sales, physical stores 795.0 770.5
Retail sales, online 325.9 258.4
Wholesale 29.1 24.6
Total revenue 1,150.0 1,053.5
In Q1 2023/24, 28.3% of Matas Group’s revenue was generated by its online channels, compared to
24.5% in the year-earlier period.
Revenue breaks down by product groups as follows:
(DKKm)
Q1
2023/24
Q1
2022/23
High-End Beauty 371.4 360.5
Mass Beauty 411.3 372.4
Health and Wellbeing 313.0 269.5
Other 25.2 26.5
Wholesale sales etc. 29.1 24.6
Total revenue 1,150.0 1,053.5
Page 19 of 25
Matas | Interim report – Q1 2023/24
Notes
Note 4 – Revenue continued
(DKKm)
Q1
2023/24
Q1
2022/23
Sale of goods 1,150.0 1,053.5
Sale of services - -
Total revenue 1,150.0 1,053.5
Revenue from sales of products through Matas 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 web shops is recognised and
payment is received when the product is sent to the customer.
A small proportion of Matas’ revenue is invoiced, e.g. wholesale sales, in which connection a receivable
is recognised.
For the Club Matas customer loyalty programme, a performance obligation is recognised at the date
of recognition of the sale triggering the allocation of Club Matas points. The performance obligation
is measured at the estimated fair value of the Club Matas points allocated and amounted to DKK 57.6
million at 30 June 2023 (30 June 2022: DKK 57.6 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 Q1 was insignificant, as was the amount of guarantee commitments.
Geographical information
Sales through Danish retail stores, web shops and wholesale sales via Kosmolet and the Web Sundhed
Group accounted for >98% (2022/23: >98%) of revenue in Q1 2023/24.
Note 5 – Acquisition of subsidiaries and contingent consideration
At DKK 3,999.4 million, the carrying amount of goodwill was unchanged compared to 31 March 2023.
(DKKm) 2023/24 2022/23
Goodwill at 1 April 3,999.4 3,993.6
Addition on acquisition of Miild A/S - 5.8
Goodwill at 30 June/31 March 3,999.4 3,999.4
Page 20 of 25
Matas | Interim report – Q1 2023/24
Notes
Note 6 – Leases
Matas’ lease assets are as follows:
(DKKm) 30 June 2023 30 June 2022 31 March 2023
Store leases 551.4 402.7 571.0
Administration and warehouse buildings etc. 42.9 54.0 45.4
Cars and other leases 5.5 3.7 5.9
Total lease assets 599.8 460.4 622.3
Matas’ lease liabilities are as follows:
(DKKm) 30 June 2023 30 June 2022 31 March 2023
Non-current liabilities 438.3 306.6 462.6
Current liabilities 192.6 176.7 188.4
Total lease liabilities 630.9 483.3 651.0
Most store leases are evergreen contracts as defined in the Danish Business Lease Act and are
consequently subject to terms of notice of 3-12 months.
Depreciation as set out below is recognised in the statement of comprehensive income:
(DKKm)
Q1
2023/24
Q1
2022/23
Store leases etc. 37.1 39.4
Administration and warehouse buildings etc. 3.8 3.4
Cars and other leases 0.6 0.4
Total depreciation of lease assets 41.5 43.2
Lease payments in the amount of DKK 46.1 million were made in Q1 2023/24 (Q1 2022/23: DKK 45.4 million).
Interest in the amount of DKK 7.3 million was expensed in Q1 2023/24 (Q1 2022/23: DKK 2.2 million).
Note 6 – Leases continued
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 2.3
million.
Note 7 – Other payables
(DKKm) 30 June 2023 30 June 2022 31 March 2023
Other non-current payables
Contingent consideration and
deferred purchase price 13.5 38.7 13.0
Total other non-current payables 13.5 38.7 13.0
Other current payables
VAT payable 41.6 32.8 41.0
Holiday pay obligations etc. 51.1 69.5 65.1
Pay-related liabilities
(A tax/social security contributions) 30.6 28.2 52.8
Contingent consideration and deferred purchase price 34.8 - 33.4
Other creditors 11.4 0.2 10.4
Total other current payables 169.5 130.7 202.7
Page 21 of 25
Matas | Interim report – Q1 2023/24
Notes
Note 8 – 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 CEO Gregers Wedell-Wedellsborg and a
total of 36,307 PSUs have been granted to CFO Per Johannesen Madsen.
Note 9 – Subsequent events
Matas paid out a dividend of DKK 2.00 per share on 4 July 2023 as approved by the Annual General
Meeting on 29 June 2023.
Page 22 of 25
Matas | Interim report – Q1 2023/24
(DKKm)
Q1
2023/24
Q4
2022/23
Q3
2022/23
Q2
2022/23
Q1
2022/23
Statement of
comprehensive income
Revenue 1,150.0 1,050.7 1,396.2 989.2 1,053.5
Gross profit 506.1 484.5 620.9 442.9 466.1
EBITDA 179.8 161.6 295.9 160.0 186.7
EBIT 88.7 50.8 201.4 73.3 97.6
Net financials (23.3) (15.5) (12.6) (13.3) (9.0)
Profit before tax 65.4 35.4 188.8 60.0 88.6
Profit for the period 49.0 17.6 147.3 46.7 69.1
Statement of financial position
Total assets 6,378.0 6,280.2 6,149.0 6,111.2 6,054.7
Total equity 3,337.4 3,363.1 3,345.2 3,195.8 3,147.0
Net working capital (50.0) 23.0 (119.4) 47.6 31.5
Net interest-bearing debt 1,482.8 1,642.4 1,235.0 1,583.7 1,561.7
Statement of cash flows
Cash flow from operating activities 251.5 (45.2) 433.9 145.7 144.5
Cash flow from investing activities (50.6) (72.9) (51.5) (85.5) (45.9)
Free cash flow 200.9 (118.1) 382.4 60.2 98.6
Net cash flow from operating,
investing and financing activities 29.8 (94.9) 88.5 (2.9) 17.9
(DKKm)
Q1
2023/24
Q4
2022/23
Q3
2022/23
Q2
2022/23
Q1
2022/23
Key performance indicators
Number of transactions (millions) 6.0 5.5 6.8 5.4 5.5
Average basket size (DKK) 188.2 182.3 202.8 179.4 187.1
Total retail floor space
(thousands of square metres) 53.7 53.3 53.7 53.5 53.5
Avg. revenue per square metre
(DKK thousands) - LTM 83.6 81.9 80.6 80.3 79.9
Like-for-like growth 8,4% 7.5% 1.2% 1.6% 2.9%
Adjusted figures
EBITDA 179.8 161.6 295.9 160.0 186.7
Special items 21.1 - - - 4.8
EBITDA before special items 200.9 161.6 295.9 160.0 191.5
Depreciation and
amortisation of software (81.2) (97.8) (81.9) (75.3) (77.8)
EBITA 119.7 63.8 214.0 84.7 113.6
Adjusted profit after tax 77.9 27.8 157.1 55.6 81.6
Gross margin 44.0 46.1% 44.5% 44.8% 44.2%
EBITDA margin 15.6% 15.4% 21.2% 16.2% 17.7%
EBITDA margin
before special items 17.5% 15.4% 21.2% 16.2% 18.2%
EBITA margin 10.4% 6.1% 15.3% 8.6% 10.8%
EBIT margin 7.7% 4.8% 14.4% 7.4% 9.3%
Interim financial highlights
Page 23 of 25
Matas | Interim report – Q1 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:
10 November 2023
Interim report – Q2 2023/24
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
CEO, phone +45 48 16 55 55
Per Johannesen Madsen
CFO, phone +45 48 16 55 55
Klaus Fridorf
Head of Communication,
phone +45 61 20 19 97
Company information
Matas A/S
Rørmosevej 1
3450 Allerød,
Denmark
Phone: +45 48 16 55 55
www.matas.dk
investor.en.matas.dk
Company reg. (CVR) no. 27 52 84 06
Additional information
Page 24 of 25
Matas | Interim report – Q1 2023/24
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
Design & production: Noted