Matas (MATAS) Q1 2025 earnings summary

Executive summary

• Group revenue grew 6.2% year-over-year in Q1 to DKK 1,956 million, with strong performance from Matas (8% organic growth) and improving profitability at KICKS despite initial operational challenges.

• EBITDA margin before special items reached 15.0%, up from 14.7% pro forma last year, reflecting operational improvements and integration benefits.

• Strategic initiatives, including logistics center investments and assortment expansion, are progressing as planned, supporting long-term growth ambitions.

• Integration of Skincity and ramp-up of KICKS warehouse continued, with temporary impacts but long-term benefits expected.

• High employee engagement and satisfaction maintained during significant organizational changes.

Financial highlights

• Group revenue reached DKK 1,956 million, up from DKK 1,841 million pro forma in Q1 2023/24.

• Gross margin improved to 46.7% (from 45.4% restated), driven by product mix and higher supplier subsidies.

• Online sales grew 21% for both Matas and KICKS, with continued high growth in e-commerce channels.

• EBITDA before special items increased 9% pro forma, with margin rising to 15.0%.

• Working capital and inventories increased, reflecting assortment expansion, KICKS integration, and timing of deliveries.

Outlook and guidance

• Full-year guidance maintained: revenue growth of 4%-7% (3.2%-6.2% FX-adjusted), EBITDA margin of 14.5%-15.5% before special items.

• CapEx for the year expected to be DKK 650 million, including DKK 325 million for the Matas logistics center.

• Assortment expansion and e-commerce expected to drive growth, with further contributions anticipated in subsequent quarters.