Published at 10:10 am
Tendam grows sales by 12.1% in first half of 2022
From March to August 2022, Tendam’s total revenues stood at €577.4 million, up €62.4 million year on year
Adjusted EBITDA for the period totalled €139.6 million, climbing 6.2% versus H1 2021 and outperforming pre-pandemic results for the same period
At the end of the reporting period the Group had paid down gross debt by 19.3%, contributing €103.3 million from its own cash reserves, securing a green loan worth €130.9 million and issuing €300 million in bonds
Products with sustainable content now account for 47% of the total, beating the target set for 2022 by two percentage points
The number of loyalty club members grew by 8.8% versus H1 2021 to break through the 31 million threshold
Tendam Brands, the parent company of Tendam, one of Europe’s leading omnichannel specialist fashion retailers, today announces its results for the period from 1 March through 31 August 2022, corresponding to the first half of the company’s 2022-23 financial year.
Tendam President and CEO Jaume Miquel said: “We closed the first half of the financial year with robust business growth driven by outstanding performances across all brands and channels. Tendam is better positioned than ever operationally, financially and in terms of its business model to weather the current uncertain conditions, as evidenced by these strong results and the company’s new debt structure.”
Tendam’s total revenues for the first half of 2022 stood at €577.4 million, up 12.1% year on year. On a like-for-like basis, sales were up by 13% versus 2021 and 8.9% versus 2019. Despite the global backdrop, like-for-like sales in the second quarter climbed 10.4% versus 2021 and 6.2% versus 2019.
Tendam’s brand portfolio put in an outstanding performance: all group brands posted an increase in total sales of more than 10% versus the first half of 2021.
In the first half of the year, the digital business posted growth of 16.6% versus 2021 and 117.2% versus 2019. From 1 March to 31 August, the digital business continued to grow its share of total sales to account for 17.2% of all sales in Spain.
Gross margin held steady year on year at 62.3%, reflecting Tendam’s efficient procurement strategy and active management of promotions and inventory levels and effectively offsetting inflationary pressures.
Adjusted EBITDA for the period totalled €139.6 million, climbing 6.2% versus H1 2021 and outperforming the pre-pandemic results for the same period, posting positive growth even against a backdrop of rising inflation. Tendam’s digital business accounts for around 20% of the company’s total EBITDA.
The company’s strategic growth drivers continued to contribute demonstrably to a positive business performance, delivering strong results and endorsing the Tendam 5.0 plan. By strengthening group brands, launching new labels, engaging with consumers and building a unique, omni-channel ecosystem which is open to third-party brands – with over 110 brands at the end of H1 – Tendam has ensured a seamless integration of its digital and physical businesses. New initiatives accounted for 18.6% of Tendam’s net growth in the period and now represent 4% of the company’s total sales.
From March to August, Tendam’s earnings before tax (EBT) grew by over 34% to stand at €36.8 million.
The company’s liquidity position improved by more than €72 million versus H1 2019 to stand at €360.1 million at 31 August 2022. At the end of the first half, Tendam’s pre-IRFS 16 net debt amounted to €363.3 million, down €89 million versus August 2021, dramatically reducing the company’s net debt to EBITDA ratio to 2.2x.
At the close of H1, the Group had paid down gross debt by 19.3%, contributing €103.3 million from its own cash reserves, securing a green loan worth €130.9 million from global and domestic financial institutions and issuing bonds for a total of €300 million. Tendam’s improved debt structure, which has pushed back maturities until 2028, affords it a strong competitive advantage which will allow the company to better withstand the current economic scenario whilst simultaneously stepping up its growth plans.
The number of loyalty club members for the various Tendam brands increased by almost 9% to total 31.4 million.
The company also continued to make great strides with its sustainability strategy. In addition to signing its first ever green loan, with terms tied to sustainability targets, Tendam’s Board of Directors also achieved gender parity in the H1 period.
The proportion of products with sustainable content rose by two percentage points to 47%, growing at a faster pace than expected and already outstripping the 45% target set for the full financial year ending in 2023. Tendam has also removed more than 90% of the plastic used in its B2C (business-to-consumer) retail operations.
“Despite the uncertain macroeconomic and geopolitical backdrop, we remain committed to our goal of delivering sustainable growth, cutting debt levels and protecting the company’s profitability,” said Tendam President and CEO Jaume Miquel.
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