Van de Velde : Half-year results 2022

31.08.2022 - 08u00

Regulated information - Half-year results 2022

Van de Velde realizes strong growth in turnover and EBITDA

• Van de Velde reports a comparable turnover of m€ 117.4, an increase of 21.5%.
• The comparable EBITDA increases by 30.0% to m€ 37.8 and corresponds to 32.2% of the comparable turnover.
• The cash position amounts to m€ 53.8.
• The net group profit of the period amounts to m€ 22.9, an increase of 26.2%.

CONSOLIDATED KEY FIGURES PROFIT AND LOSS STATEMENT (PREPARED IN ACCORDANCE WITH IFRS AND AUDITED)

Consolidated key figures	30.06.2022		30.06.2021		%
Profit and loss statement (in m€)
Turnover (1)	114.4		97.6		17.1%
Operating profit before depreciation and	35.8		29.8		20.2%
amortization ('EBITDA') (3)
EBIT or Operating profit	30.1		23.1		30.5%
Group profit	22.9		18.2		26.2%
Turnover	114.4		97.6		17.1%
Effect of early deliveries	3.0		-1.0
Turnover on a comparable basis (2)	117.4		96.6		21.5%
EBITDA on a comparable basis (2)	37.8		29.1		30.0%

Our CEO Peter Corijn looks back to 2022 H1:

"Thanks to a passionate team, beautiful brands and a clear optichannel strategy Van de Velde managed to achieve a strong turnover growth in the first half of 2022. Both the B2B segment and the D2C segment have experienced strong growth."

1. The turnover in the first half of the year includes the swim collection, which leads to a higher turnover compared to the second half of the year.
2. Turnover and EBITDA on a comparable basis are the turnover and EBITDA adjusted for the effect of early deliveries in order to show the same seasons. In 2022, this adjustment was m€ 3.0, being the invoiced turnover in 2021 for deliveries of the 2022 summer collection, corrected with the invoiced turnover in 2022 for deliveries of the 2022 winter collection. In 2021 this was a correction of -m€ 1.0, being the invoiced turnover in 2020 for deliveries of the 2021 summer collection, corrected with the invoiced turnover in 2021 H1 for deliveries of the 2021 winter collection.
3. EBITDA equals operating profit plus depreciation and amortization of intangible and tangible fixed assets.

Van de Velde NV - Lageweg 4 - 9260 Schellebelle - Belgium - T. [phone] - F. [phone] - www.vandevelde.eu - [e-mail]

TURNOVER

On a comparable basis (including comparable seasonal deliveries), the consolidated turnover increases by 21.5% in 2022 H1 from m€ 96.6 to m€ 117.4. The reported turnover increases by 17.1% from m€ 97.6 to m€ 114.4. The stronger increase of the consolidated turnover can be explained by a larger number of early deliveries of the 2022 summer collection at the end of 2021.

This comparable turnover evolution consists of the following components:

In m€	30.06.2022	30.06.2021	%
Turnover B2B segment (1)	92.0	78.9	16.6%
Turnover D2C segment (2)	22.3	18.7	19.1%
Total turnover	114.4	97.6	17.1%
Early deliveries winter collection H1 2022 and
2021	-1.9	-1.9
Early deliveries summer collection H2 2021 and
2020	5.0	0.9
Comparable Turnover B2B segment	94.9	77.8	22.0%
Comparable Turnover D2C segment	22.4	18.8	19.6%
Total comparable turnover	117.4	96.6	21.5%

Our comparable turnover goes even beyond pre-pandemic levels. In the B2B segment, the turnover grows by 22.0% to m€ 94.9 and in the D2C segment, the turnover grows by 19.6% to m€ 22.4. Both segments have experienced strong growth, the following trend can be observed:

• Consumers returned to the physical stores which resulted in strong sales growth.
• Swim sales grew significantly and have largely recovered after two years of travel restrictions.
• Sales are further supported by an optichannel customer experience based on a 360° marketing activation throughout different channels and countries.

EBITDA

On a comparable basis (including comparable seasonal deliveries), consolidated EBITDA in H1 2022 rises by 30.0%, from m€ 29.1 in H1 2021 to m€ 37.8. The reported EBITDA increases in H1 2022 by 20.2% from m€ 29.8 in H1 2021 to m€ 35.8.

The EBITDA on a comparable basis amounts to 32.2% of the turnover compared to 30.1% in H1 2021. The main reason for this positive evolution is the 21.5% increase in turnover. Furthermore a better mix and exchange rate offset the negative impact of inflation.

FINANCIAL RESULT

The financial result amounts to -m€ 0.5 in H1 2022 compared to -m€ 0.8 in H1 2021. The difference of m€ 0.3 is mainly explained by the impact of exchange rate conversions.

(1) The B2B segment refers to sales realized at wholesale price. Today this concerns the business with independent retail, e-tail partners, franchisees and department stores.

1. The D2C segment refers to sales realized at retail price. Today this concerns the business from our own store network, our own websites and the concession sales in department stores.

Van de Velde NV - Lageweg 4 - 9260 Schellebelle - Belgium - T. [phone] - F. [phone] - www.vandevelde.eu - [e-mail]

SHARE OF RESULT 'EQUITY PICK-UP'

The estimated result in the first half of 2022 of the participation (25.66%) in Top Form International Ltd. based on the 'equity'-method is m€ 0.1. The final results will be published by Top Form International Ltd. on 16 September 2022.

INCOME TAX AND NET PROFIT

The tax rate amounts to 22.8%, compared to 16.0% in H1 2021. In H1 2021 there was a transferable fiscal stimulus from the previous financial year.

In H1 2022 the group profit amounted to m€ 22.9 compared to m€ 18.2 in H1 2021.

CONSOLIDATED KEY FIGURES BALANCE SHEET (PREPARED IN ACCORDANCE WITH IFRS AND AUDITED)

Consolidated key figures	30.06.2022		30.06.2021		%
Balance sheet (in m€)
Fixed assets	71.1	77.0	-7.6%
Current assets	127.9	116.0	10.2%
Total assets	199.0		193.0		3.1%
Equity	158.2	147.8	7.0%
Grants	0.2	0.3	-25.0%
Total non-current liabilities	9.2	14.1	-34.7%
Total current liabilities	31.4	30.7	2.0%
Total equity and liabilities	199.0		193.0		3.1%

INVESTMENTS

Capital expenditure (excluding right of use assets) amounts to m€ 3.0 in H1 2022 compared to m€ 2.3 in 2021. These investments primarily relate to the further development of digital platforms and systems. There were also smaller investments in our buildings.

WORKING CAPITAL AND SOLVENCY

Working capital (current assets excluding cash and cash equivalents less current liabilities excluding financial debts) increases and amounts to m€ 45.6 in H1 2022 compared to m€

36.3 in H1 2021. This is to the result of an increase in inventory levels to support further growth and to guarantee the reliability of deliveries.

The solvency (share of equity in total equity) of Van de Velde remains high (79.5%). The current assets amount to 4.1 times the current liabilities, which indicates a strong liquidity.

EVENTS AFTER THE BALANCE SHEET DATE

No events happened after the balance sheet date that could have had a major impact on the state of the group.

Van de Velde NV - Lageweg 4 - 9260 Schellebelle - Belgium - T. [phone] - F. [phone] - www.vandevelde.eu - [e-mail]

PROSPECTS

The current economic climate is uncertain. The impact of this on our growth for the next few months is unclear and difficult to predict. We will continue to implement our strategic plan in the coming months. With the purpose to ignite the power in women through our brands.

SHARE BUY-BACK PROGRAMME

On February 23, 2022, the Board of Directors approved another share buy-back programme for a maximum amount of m€ 15. The buy-back programme started on March 1, 2022 and has a planned duration of one year. The goal of this buy-back programme is to reduce the cash surplus of the company and, optionally, to cancel partially or completely acquired shares.

The purchases are made in accordance with the applicable laws and regulations and within the framework of the mandate granted by the Extraordinary General Meeting of December 11, 2019. The programme is carried out by an independent broker with a discretionary mandate, which means that the purchases take place in both open and closed periods. Van de Velde regularly provides information about the purchase transactions carried out.

During 2022, 63.037 shares were purchased. In total, 257.077 shares are in possession of Van de Velde on June 30, 2022.

CONSOLIDATED KEY FIGURES 2022 H1

The exhaustive financial report (including regulated information and the statement of limited supervision of the commissioner) can be consulted through this link.

Van de Velde creates fashionable lingerie of superior quality with its premium, complementary brands PrimaDonna, Marie Jo and Andres Sarda. We believe in 'Shaping the bodies and minds of women': we want to make a difference in women's lives with our beautiful and perfectly fitted lingerie, by lifting their self-confidence and self-image. For us, an impeccable in-store service is key, an approach which we have consolidated in our Lingerie Styling Concept.

We work in close partnership with 3.600 independent lingerie boutiques worldwide. In addition, we have our own retail network with retail brands Rigby & Peller and Lincherie. Our geographical center of gravity is Europe and North America. Van de Velde employs almost 1,500 employees and is listed on Euronext Brussels.

CONTACTS

For more information, you can get in touch with:

Van de Velde NV - Lageweg 4 - 9260 Schellebelle - [phone] - www.vandevelde.eu

Van de Velde NV - Lageweg 4 - 9260 Schellebelle - Belgium - T. [phone] - F. [phone] - www.vandevelde.eu - [e-mail]

Vucastar BV,	Karel Verlinde CommV,
always represented by	always represented by
Peter Corijn	Karel Verlinde
CEO	CFO

Van de Velde NV - Lageweg 4 - 9260 Schellebelle - Belgium - T. [phone] - F. [phone] - www.vandevelde.eu - [e-mail]