Turnover of the First Nine Month of the 2020/2021 Financial year
Acceleration of the Growth Momentum to +20.4% for the 3rd quarter
Damartex closes the third quarter with +20.4% growth at actual exchange rates (+20.8% at like for like rates) with a turnover of €195.2 Mn. This increase confirms the good business momentum observed in the first two quarters of the financial year, which were up +1.3% and +6.2% respectively at actual exchange rates. Although the Group benefited from a favourable base effect, this good performance was achieved in an economic context that remained deteriorated (with health measures, or closed stores in several markets). These good results reflect Damartex’s willingness to continue to invest in order to increase its turnover. This is particularly the case in the e-commerce channel, where the digital acceleration is reflected in a +75.6% growth in business over the third quarter and +60.9% for the first nine months of the year at actual exchange rates.
Over the first nine months of the year, Damartex has recorded a clear improvement in sales of +9.0% at actual exchange rates (+9.5% at like for like exchange rates) to € 597.5 Mn. This increase is significant in all divisions and all distribution channels.
Sales for the “Fashion” division came to €436.0 million for the first nine months, up by +5.6% at actual exchange rates (+6.0% at like for like exchange rates). In the third quarter, sales improved by +18.4% at actual rates (+18.7% at like for like exchange rates).
Over the quarter, growth was driven mainly by Damart, with growth of +29.5% at actual exchange rates (+29.9% at like for like exchange rates). This momentum demonstrates the positive impact of the modernization strategy and the marketing investments made. In France, sales rebounded by nearly +25% at actual exchange rates across all distribution channels (stores, mail order and web). In Belgium and the United Kingdom, business remained solid with increases of +20.1% and +50.2% respectively at actual exchange rates.
Afibel’s business, down -8.5% at actual rates over the last three months, continues to be impacted by its transformation. At the end of the period, the brand unveiled its new positioning accompanied by a media campaign whose first effects are expected in the next financial year.
Sales for the “Home & Lifestyle” division came to € 137.9 Mn, up +16.5% at actual exchange rates (+17.2% at like for like exchange rates) over the first nine months. Sales for the second quarter amounted to € 48.8 Mn, a sharp increase of +25.2% at actual exchange rates (+25.8% at like for like exchange rates).
This rebound can be explained in particular by digital and marketing investments aimed at highlighting the renewal of the offer and increasing the share of the Web in the sales mix. Thus, over the quarter, while Coopers of Stortford recorded growth of +75.3% at actual rates, the 3Pagen-Vitrine Magique brand increased its activity by +15.4% at actual rates.
The “Healthcare” division, which includes the Sedagyl and Santéol brands, posted sales of €23.6 Mn, up by a significant +40.1% at actual exchange rates (+40.7% at like for like exchange rates over the first nine months). For the quarter, sales rose by +28.4% at actual exchange rates (28.7% at like for like exchange rates) to € 8.2 Mn. This momentum is being driven by both brands, including Santéol, which has benefited from the effective integration of Eden Médical since 1 January 2021.
The latest publications for the current financial year demonstrate the Group’s strong ambition, through the implementation of its strategic plan: “Transform to Accelerate 2.0” to return to growth thanks to a strong positioning in the silver economy segment.
The Group is continuing its efforts to implement its strategy to generate profitable growth. However, it remains cautious in view of the health situation which is still tense.