Dutch retailer Hema reports record sales in FY17 and net profit in Q4 FY17
Dutch retailer Hema announced today that it has seen a record number in sales in FY17 and a net profit in Q4 FY17.
Hema’s net sales of FY17 came in at €1,235.5 million, an increase of 3.5% compared to €1,193.2 million in FY16. According to Hema, the increase in net sales was the result of higher like-for-like consumer sales (+2.1%), a net addition of 15 new stores and higher deliveries to its franchisees.
In Q4 FY17, net sales increased by 3.8% to €356.9 million. A year earlier, in Q4 FY16, the retailer recorded €343.9 million in net sales. The net profit in Q4 FY17 came in at €6.0 million compared to a net loss of €0.3 million in Q4 FY16.
The retailer’s adjusted EBITDA improved by 14.3% at €123.7 million in FY17, from €108.2 million in FY16. Online sales increased by 31% in FY17 compared to FY16.
Hema said that it had reported higher sales in all countries, in which the retailer is active, and across all product categories, including apparel, beauty and home products.
However, Hema still recorded a net loss for FY17, which was reported at €30.9 million, compared to €26.2 million in FY16. According to the retailer, the loss is a result of non-recurring costs, which are connected to Hema’s refinancing as well as the exploration of strategic options (€23.0 million).
Tjeerd Jegen, CEO at Hema, said in a press release: “We can look back on a strong year, in which much has been achieved. We opened more stores outside the Netherlands than ever before. As such, the contribution of our international activities to our total result has further increased. Net sales reached an all-time record high and adjusted EBITDA strongly improved on the back of ongoing investments in our growth strategy. In the period ahead we will continue to focus on further improving the gross margin.”
In the first half of FY18, Hema will be opening its first stores in Austria, followed by its first stores in the Middle East. The chain said that it aims to open 30 to 35 stores outside the Benelux in FY18.
Hema launched in 1926 in the city of Amsterdam. Today, the retailer is active in nine countries and is known for its large product range, which includes clothing, cosmetics, home products and food. The retailer operates more than 700 stores.
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