Turnover for the 2nd quarter of the 2022/2023 financial year
Agility and Strong Fundamentals in a Still Challenging Environment
Damartex ended the first half of the 2022/2023 financial year with sales of €364.6 Mn, down on the previous year (-9.2% at actual exchange rates, -9.1% at like for like exchange rates). In a context marked by inflation and the decline in purchasing power, sales amounted to €229.2 Mn, down -6.4% in the second quarter (-6.0% at like for like exchange rates).
The slowdown in the UK market is becoming more pronounced and is impacting the Group’s brands in this region.
Damartex also continues to recruit customers: + 700,000 new customers over the last quarter (down -28% compared with last year).
Sales for the Fashion division totalled € 284.9 Mn for the first half of the year, down -6.6% at actual exchange rates (down -6.4% at like for like exchange rates). Second-quarter sales were slightly down by -2.4% at actual exchange rates (-2.2% at like for like exchange rates).
Damart remained stable over the 2nd quarter compared with the previous financial year: in contrast to the UK market, where consumption is stagnating, Damart performed well in France and Belgium, particularly in terms of sales in stores.
Afibel ended the quarter down -27.7% at actual rates. Xandres continued to perform well and ended the second quarter with a very strong increase of +56.5% at actual rates.
The Home & Lifestyle division, still affected by a contraction in post-covid consumption in the home equipment sector, closed the half-year with sales of €58.1 Mn, down -27.6% at actual rates (-27.2% at like for like exchange rates). The downturn in consumer spending in the German and UK markets, which began in the 1st quarter of the year, again weighed on 3Pagen and Coopers of Stortford sales in the 2nd quarter, down -29.7% and -21.4% respectively at actual exchange rates.
The Healthcare division, dedicated to the healthcare business and recently strengthened, continues to grow, posting a strong increase in turnover of +29.8% at actual exchange rates in the first half of the year, reaching €21.6 Mn (+30.1% at like for like exchange rates).
Second-quarter sales amounted to €10.5 Mn, up sharply by +24.7% at actual rates (+25.2% at like for like exchange rates). The division was driven in particular by the very good performance of Santéol, which posted strong growth of +59.8% over the period.
Damartex demonstrates its strong capacity to adapt and remains confident in its diversification strategy through its three divisions, which will remain a strength for the coming quarters.
In a market environment marked by strong uncertainty, particularly in the UK market, caution and fine-tuned steering will continue to guide the Group in the coming months.
The Extra-Financial Performance Statement presents the strategy and CSR indicators of the Damartex Group. It is published every year, after an external audit.
Damartex has formalised its CSR policy, Change Our World, around three pillars: planet, ethics and solidarity.
Commitment to the planet
- We have measured the carbon footprint of the entire value chain (scope 1, 2, 3). The Group emitted 533,582 tonnes of CO2 eq in 2022, i.e. 14kg of CO2 eq per product sold (down 10% on 2020). Our ambitions, aligned with a 1.5°C trajectory, are a 25% reduction by 2025 and 50% by 2030.
- A more responsible Offer: eco-design rules are defined, life cycle analyses are carried out and trusted labels are selected. 16% of products are currently eco-designed. Our ambition is to have a 100% responsible offer by 2030.
- Plastic packaging waste is either eliminated or replaced by cardboard, paper or recycled plastic. The group has reduced the use of plastic by 27% in 1 year. Our ambition is to generate zero single-use plastic packaging by 2030.
Commitment to people
- Happy and talented employees: the autonomy and fulfilment of our employees are essential to improve performance and agility. The employee satisfaction survey rate was 67.75% in 2021. Giving meaning to daily life by involving everyone in CSR is a major challenge Our ambition is to have 100% of employees involved in CSR.
- Responsible purchasing: the policy is based on three pillars: the responsible purchasing charter, the involvement of buyers and social and environmental audits. In 2022, 57.5% of products purchased came from audited factories. Our ambition is for 100% of our products to come from audited factories.
Commitment to seniors
- Our ambition in 2030 is to make the Group and its foundation a key player in the inclusion of seniors.
- Innovation and quality for seniors are at the heart of the Group’s DNA. Customer satisfaction is measured by the Net Promoter Score. It was 34.4 in 2022.
- The On Seniors’ Side Foundation supports solidarity projects in the countries where the Group operates. Its mission is to “change the way society looks at seniors and act for their well-being”. Since its creation in 2019, the Foundation has financed and supported 89 projects for a total of €500,000.
The Change Our World axis is a major issue in the Damartex Group’s transformation plan: the teams are aligned and commit themselves a little more each day to achieve our ambitions.
Group Agility in a Still Deteriorated Economic Environment
In the first quarter of the 2022/2023 Financial year, the Damartex Group’s revenues amounted to €135.4 Mn, down -13.7% at actual exchange rates compared with the 1st quarter of 2021/2022 (-13.8% at like for like exchange rates).
Over this period, the Group recruited 302,000 new customers. This compares to 415,000 new customers in the same quarter last year.
In general, the Group’s activity was negatively influenced by a difficult economic environment: purchasing power crisis, geopolitical uncertainty, death of the Queen in the United Kingdom, etc.
Sales for the “Fashion” division came to €101.5 Mn for the quarter, down ‑13.2% at actual exchange rates (-13.3% at like for like exchange rates). Despite strong sales in stores, Damart posted a -13.8% drop in turnover at actual rates, which was affected by the temporary closure of websites this summer following a cyber attack. Afibel closed the quarter with revenues down -22.1% at actual exchange rates, while Xandres continued its good performance with a significant +17.8% increase in revenues over the period. The “Home & Lifestyle” division, marked by a “post-covid” contraction in the consumption of home & garden items, recorded sales of €22.7 Mn in the first quarter, down -28.5% at actual and like for like exchange rates. The Coopers of Stortford, 3Pagen and Vitrine Magique brands recorded a decline of ‑26.8%, ‑32.9% and -17.4% respectively at actual rates.
Finally, the “Healthcare” division, which includes the activities of Santéol, MSanté, Sédagyl and Médical Santé, recently acquired, recorded strong growth of +35.0% at actual exchange rates, with revenues of €11.2 million.
It was driven in particular by the healthcare services business with MSanté, and by the solid performance of Santéol, which showed very strong growth of +60.5% over the period.
In this 1st quarter, Damartex confirms the dynamism of its “Healthcare” division, recently reinforced with the acquisition of Icelus Medical, and the solid fundamentals of its “Fashion” division to evolve in a still deteriorated economic environment.
The Group remains agile to respond to it. Current sales of Thermolactyl products by Damart, as a result of the return of cold weather, are an illustration of this, even if they alone cannot predict the general trend of Damartex’s activity.
The Group remains cautious about the rapid and uncertain evolution of the macroeconomic situation.
Strengthening of Santéol in the Paris Region
The Damartex group announces the acquisition of 100% of the shares of the ADS company by Santéol holding. This operation, like the previous ones, is part of the implementation of the Group’s transformation plan “Transform to Accelerate – TTA 2.0”.
The ADS company, a home healthcare provider (so-called PSAD) specializing in respiratory assistance, is based in Villeparisis in Seine-et- Marne (France).
Founded in 2014 by David Sdez, it has achieved a turnover of over €3 Mn in 2021 thanks to the trust of over 5,500 patients who recognize its quality of service.
This merger will enable Santéol to accelerate its development. Combined with the existing presence in the west of Paris, Santéol will be in a position to best serve all patients in the Paris region.
With his expertise, David Sdez will provide commercial support for the integration of ADS into the Santéol group over the next twelve months.
In line with its ambition to become the European leader in the Silver economy, the Damartex group expresses through this acquisition its desire to continue the development of its Healthcare division.
The integration of ADS strengthens Santéol’s position as a leader in respiratory Home Healthcare Service segment, with more than 22,000 patients cared for and a geographical coverage that allows for more local service.
ADS will be integrated into the Damartex Group’s accounts as of 1 July 2022.
Progress of the TTA 2.0 Transformation Plan Slowdown in Business in an Inflationary Context
Damartex closed the 2021/2022 fiscal year with sales of €719.0 million, down -5.9% at actual rates compared with the previous year (-7.1% at like for like exchange rates), impacted by a difficult economic context. After a stable first half compared with the previous year, the Group posted revenues of
€317.2 Mn in the second half of the year, suffering from a slowdown in sales of -12.3% at actual rates (-13.2% at like for like exchange rates) against the same period last year.
Damartex continues to strengthen its customer base, which was enhanced by 1.4 million new customers in the first half of the year, by adding 0.8 million new customers in the second half of the year, including 0.3 million in the fourth quarter.
In the fourth quarter, business fell significantly, particularly affecting the “Fashion” and “Home & Lifestyle” divisions. Despite a good performance in “Healthcare”, driven in particular by the dynamism of recent acquisitions, the quarter closed at €144.2 Mn, down -13.5% (-14.1% at like for like exchange rates).
Sales for the “Fashion” division amounted to € 535.5 Mn over the 2021/2022 financial year, down -3.5% at actual exchange rates. This division has seen strong growth in stores (+23.8% compared with last year). The revenue level observed for this sales channel is also up +19% compared with 2019/2020.
Damart remained robust in the face of the economic situation, but suffered a slight decline of -2.4% at actual rates over a year marked by the slowdown in the traditional “mail order” channel, while Afibel recorded a decline of -8.9% at actual rates. Benefiting from its positioning in the affordable luxury segment, Xandres posted record performances in Belgium and the Netherlands, representing an increase of +20.4% at actual exchange rates.
The “Home & Lifestyle” division was particularly affected by the deterioration in the macroeconomic environment, and posted revenues of €147.6 million, down -16.9% at actual exchange rates over the year (down -18.6% at like for like exchange rates). The sales of the three banners suffered from a very unfavourable base effect on e-commerce, which had benefited from the health crisis.
Lastly, sales for the “Healthcare” division, which includes the Sedagyl, Medical Santé, Santéol and MSanté banners, amounted to €35.9 million, up significantly by +14.3% at actual exchange rates and +13.4% at like for like exchange rates. This good momentum in the Healthcare division continues to be reinforced by recent acquisitions, perfectly in line with the TTA 2.0 transformation plan.
Santéol, a home healthcare provider specializing in respiratory assistance, continued to grow at +18.4% at actual rates in FY 2021/22, while Sédagyl, an marketplace for home care, recorded a decline of -9.2% at actual rates, negatively impacted by the Covid base effect.
Despite a deteriorated macroeconomic and geopolitical environment, Damartex is continuing to deploy its strategic plan: Transform to Accelerate 2.0 to support its development while coping with persistent tensions on supplies. The Group is exercising caution by remaining extremely agile with regard to the rapid evolution of the economic environment, and anticipates, as mentioned at the time of the publication of the third quarter revenues, a negative impact on the annual results of the 2021/2022 fiscal year.
Further development in the “Healthcare” sector and restructuring of the homecare (MAD) activity
As part of its ‘Transform To Accelerate – TTA 2.0’ transformation plan, the Damartex group announced its acquisition of 100% of the shares in the Médical Santé group, thereby reinforcing its position as a European leader in the Silver Economy.
Created in 1997 by Charles-Henri Bastien and based in Mons-en-Barœul (59), the Médical Santé group boasts a staff of 85 employees and offers homecare health products (MAD) and services (PSAD). Médical Santé generated a turnover of € 10 M in 2021 thanks to the trust it has built with more than 800 chemists as well as hospitals and associations, and also through the development of e-commerce.
Following this acquisition, Damartex plans on merging Médical Santé with Sédagyl, the Group’s platform for comfortable living solutions. It was created in 1995 and specialises in homecare for seniors. Their complementary business models will further the Group’s goal of offering the best omnichannel products and services offer on the market, while establishing a relationship with its patients and customers based on respect and trust.
Charles-Henri Bastien will support the integration of Médical Santé through the summer of 2022. Christian Marie, who has extensive experience in this sector, will join the Damartex group as the Managing Director of the new homecare department (with Médical Santé and Sédagyl) and will be in charge of developing this activity.
“I am delighted and extremely proud of Médical Santé’s integration within the Damartex group, which shares our values. The synergies between our brands will make it possible to continue developing a comprehensive and innovative offer that will set us apart on the homecare market,” said Charles-Henri Bastien, the General Director and Founder of Médical Santé.“We look forward to bringing on board the Médical Santé teams. The merger with Sédagyl will lead to the emergence of a French player offering an omnichannel solution to assist the elderly and enable them to stay at home as long as possible, which is what the vast majority of them desire,” added Patrick Seghin, Chair of the Damartex executive management board.
Continuation of the Group’s Transformation Plan Despite an Uncertain and Inflationary Environment
Damartex closed the third quarter with sales of € 173.0 Mn, down -11.3% at actual exchange rates (down -12.5% at like for like exchange rates) compared with the third quarter of the previous financial year. The Group’s business is suffering from record inflation, particularly in the UK and Germany, leading to a contraction in consumption. The base effect is also unfavourable: the third quarter of 2020/21 saw a strong recovery in demand, with, as a reminder, a +20.8% growth in turnover compared with €162.1 Mn in the 3rd quarter of 2019/20.
Building on a customer base that had been built up with 1.4 million new customers in the first half of the year, Damartex added 525,000 new customers in the third quarter. This is a slowdown compared to the third quarter of 2020/21 but an increase of 25,000 new customers compared to the same quarter pre-covid.
For the first nine months of the financial year, Damartex’s sales were down by -3.8% at actual exchange rates (-5.2% at like for like exchange rates) to € 574.8 Mn.
Sales for the “Fashion” division came to €432.7 million for the first nine months, stable against the last financial year (-0.8% at actual exchange rates, -1.9% at like for like exchange rates). In the third quarter, sales shrunk by -7.5% at actual rates (-8.6% at like for like exchange rates).
Over the quarter, the Xandres brand performed well, with very strong growth of +44.6% at actual and like for like exchange rates, driven in particular by the dynamic Belgian market and the brand’s positioning. Arbitrage on consumption impacted Damart and Afibel, respectively down -8.7% at actual rates (-10.0% at like for like exchange rates) and -12.6% at actual and constant rates over the quarter.
Sales for the “Home & Lifestyle” division came to € 117.2 Mn, down by -15.0% at actual exchange rates (-17.0% at like for like exchange rates) over the first nine months. Sales for the third quarter amounted to € 37.0 Mn, (-24.2% at actual exchange rates, -25.6% at like for like exchange rates).
This decline is explained in particular by the impact of inflation in the United Kingdom, which is at its highest level since the 1990s, on the Coopers of Stortford brand, and the strong base effect compared with the previous financial year. The company recorded a drop of -34.4% at actual rates over the quarter (-37.3% at like for like exchange rates), particularly marked on a very strong decline in e-commerce in the sector.
Finally, the “Healthcare” division, which includes the Sedagyl, Santéol and MSanté brands, reported sales of €24.9m, confirming the good momentum of the business with growth of +5.5% at actual exchange rates over the first nine months (+4.5% at like for like exchange rates). For the quarter, the business stabilized at +0.3% at actual exchange rates (-0.5% at like for like exchange rates) with sales of € 8.2 Mn.
The deteriorated economic environment is prompting the Damartex Group to accelerate its development and pursue the transformation actions that are part of its Transform to Accelerate 2.0 strategic plan.
The Group is not directly exposed to the Ukrainian conflict. However, in this geopolitical context, which is likely to affect the global economy and accentuate inflation and supply tensions over the coming months, the Group anticipates a negative impact on its results and remains cautious as to the evolution of the situation.
The Damartex group announces the acquisition of 100% of the shares of the company JP Consult by the company Santéol Holding. This operation, like that of Perf R in Île de France recently, is part of the group’s transformation plan: “Transform To Accelerate – TTA 2.0”.
JP Consult is a home health care provider (PSAD) specialising in respiratory assistance and based in Mouroux, Ile de France.
JP Consult was founded in 2012 by Michel Crépin and has achieved a turnover of nearly €1.2 million in 2021 thanks to the trust of more than 2,000 patients who recognise the quality of service and the responsiveness of the teams in place.
This merger will enable Santéol to develop its activity in the Centre-East of France due to the presence of JP Consult in 5 departments in this region. Through the growing demand on the market, this operation is in line with the group’s ambition to become the European leader in the Silver economy, and illustrates Damartex’s desire to strengthen its Healthcare division.
With his expertise in this sector, Michel Crépin will take over the management of the Santéol Bourgogne Franche-Comté agency to accelerate this development.
With the integration of JP Consult, Santéol continues its geographical expansion and now covers most of France. The company is reinforcing its position as leader with nearly 17,000 patients cared for and a network of agencies allowing for ever greater proximity.
The integration of JP Consult in the accounts of the Damartex Group will take place on 1 January 2022.
As part of its “Transform To Accelerate – TTA 2.0” transformation plan, the Damartex group announces the acquisition of 100% of the shares of the company Perf R by the company Santéol île de France.
The company Perf R, a home health care provider specialising in respiratory assistance, is based in Palaiseau in Ile-de-France.
Perf R was founded in 2011 by Kader Abdellaoui. The entity has achieved a turnover of nearly €0.8M in 2021 thanks to the trust of 1,100 patients who recognise the quality of service and the responsiveness of the teams in place.
This merger will strengthen Santéol’s presence in the Paris region. The Croissy-sur-Seine branch will host the Perf R teams.
Given his experience in the profession, Kader Abdellaoui will take over the commercial management of Santéol in France. The integration of Perf R in the accounts of the Damartex group will take place as of 1 January 2022.