Van de Velde : View 2022 Half-year results

FINANCIAL REPORT ON CONSOLIDATED RESULTS FOR THE FIRST HALF OF THE YEAR 2022

REGULATED INFORMATION

	Consolidated key numbers	30.06.2022		30.06.2021
	Profit and loss statement (in € 000)
	Turnover	114 353		97 644
	Other operating income	2 657		3 011
	Cost of materials	-18 506		-18 227
	Other expenses	-38 926		-30 724
	Personnel expenses	-23 782		-21 928
	Depreciation and amortization	-5 727		-6 727
	Operating Profit	30 069		23 049
	Finance income	1 461		701
	Finance costs	-1 964		-1 515
	Share of result of associate (equity pick-up)	96		-519
	Profit before taxes	29 662		21 716
	Income taxes	-6 744		-3 554
	Profit for the period	22 918		18 162
	Basic earnings per share (in euro)	1,75	1,38
	Diluted earnings per share (in euro)	1,74	1,37
	Other comprehensive income
	Gains and losses from the conversion of the financial statements of foreign entities within	917		865
	the Group entities and non-controlling interests
	Gains and losses related to Group entities	-94		533
	Gains and losses related to associated companies	1 011		332
	Gains and losses related to participations (equity method)	-403		-254
	Total other comprehensive income (fully recyclable in the income statement)	514		611
	Recalculation gains/(losses) on defined benefit plans	278		177
	Share of other comprehensive income of participations (equity method)	108		0
	Total other comprehensive income (not recyclable in the income statement)	386		177
	Total of profit for the period and other comprehensive income	23 818		18 950

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FINANCIAL REPORT ON CONSOLIDATED RESULTS FOR THE FIRST HALF OF THE YEAR 2022

REGULATED INFORMATION

TURNOVER

On a comparable basis (including comparable seasonal deliveries), the consolidated turnover increases during the first half of 2022 by 21.5% from m€ 96.6 to m€ 117.4. The reported turnover increases more sharply, namely 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.

The comparable Turnover consists for our B2B segment (1) and for our D2C (2) out of following elements:

		30.06.2021
In m€	30.06.2022	(restated)	%
Turnover B2B segment	92 034	78 898	16.6%
Turnover D2C segment	22 319	18 746	19.1%
Total Turnover	114 353	97 644	17.1%
Deliveries winter collection in H1 2022 and 2021	-1 941	-1 904
Deliveries summer collection in H2 2021 en 2020	4 959	861
Comparable Turnover B2B segment	94 942	77 842	22.0%
Comparable Turnover B2B segment	22 429	18 758	19.6%
Total comparable turnover	117 370	96 601	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:

1. • 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.
2. 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.
3. 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.

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FINANCIAL REPORT ON CONSOLIDATED RESULTS FOR THE FIRST HALF OF THE YEAR 2022

REGULATED INFORMATION

OTHER OPERATING INCOME AND EXPENSES

The other operating income and expenses consists out of following elements:

(in € 000)	30.06.2022	30.06.2021
Revenue from charged costs	1 967	1 439
Revenue from recovered costs	421	1 256
Other revenue	269	316
Other operating income	2 657	3 011
Subcontracting costs	-14 018	-10 188
Distribution costs	-5 549	-4 567
Sales and marketing costs	-11 262	-9 131
Other costs	-8 097	-6 838
Other expenses	-38 926	-30 724

Other operating expenses end 11.7% lower in H1 2022 at m€ 2.7. This decrease is due to lower revenue from recovered costs. In 2021, because of COVID-19, Van de Velde obtained financial interventions on costs which can explain the decrease in revenue from recovered costs. Apart from COVID-19 interventions, the recovered costs mainly consist of recovered payroll and insurance costs.

The increase in costs (subcontracting, distribution, sales and marketing costs) is a result of the higher turnover in H1 2022 and mainly relates to higher sales volumes as well as increased marketing efforts.

PERSONNEL EXPENSES

The personnel expenses end up 8.5% higher in H1 2022 to m€ 23.8. The increase is partly due to the full resumption of activities in our own store network. In the first half of 2021, stores in several countries were closed for several weeks. In addition, personnel costs are rising due to the growth in volume. Finally, personnel costs were subject to inflation.

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FINANCIAL REPORT ON CONSOLIDATED RESULTS FOR THE FIRST HALF OF THE YEAR 2022

REGULATED INFORMATION

EBITDA

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

(in € 000)	30.06.2022 30.06.2021
EBITDA
Operating Profit	30 069	23 049
Depreciation and amortization	-5 727	-6 727
EBITDA	35 796	29 776
Comparable EBITDA
EBITDA on comparable seasonal deliveries	1 992	-698
Comparable EBITDA	37 788	29 078

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

IMPAIRMENT ON GOODWILL AND INTANGIBLE ASSETS WITH INDEFINITE USEFUL LIFE

No impairment tests were performed in the first half of 2022 as there were no impairment indicators.

FINANCIAL RESULT

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

• The conversion losses end up m€ 0.5 higher than in H1 2021.
• The conversion profits end up m€ 0.8 higher than in H1 2021.

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FINANCIAL REPORT ON CONSOLIDATED RESULTS FOR THE FIRST HALF OF THE YEAR 2022

REGULATED INFORMATION

SHARE OF RESULT 'EQUITY PICK UP'

The 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 Tom Form International Ltd. on September 16th, 2022.

INCOME TAX AND NET PROFIT

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

In the first half of 2022, the group profit ended at m€ 22.9 compared to m€ 18.2 in the first half of 2021.

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