Matas (MATAS) Q2 24/25 earnings summary

Executive summary

• Achieved 6.8% pro forma, currency-neutral revenue growth year-over-year in Q2, with stable EBITDA margin at 12.6%, slightly ahead of internal growth expectations.

• Nordic strategy delivered strong revenue and earnings growth, with all channels and markets contributing; KICKS Online grew 24% excluding Skincity, and Matas online up 18.7%.

• Membership growth continues, surpassing two million in Club Matas and one million in KICKS Norway.

• Strategic focus on expanding assortment, launching new brands, and enhancing customer experience both online and in stores.

• Opened a new flagship store in Helsinki, generating significant customer and media attention, and boosting sales in Finland.

Financial highlights

• Q2 group revenue reached DKK 1,851m, up from DKK 1,727m proforma last year, a 6.8% currency-neutral increase.

• Gross profit margin at 46.0% (Q2 2023/24 proforma: 45.8%), with Matas at 46.8% and KICKS at 44.8%.

• EBITDA margin before special items stable at 12.6% (Q2 2023/24: 12.6% currency neutral).

• Free cash flow from operations improved by DKK 151m in H1, with CAPEX mainly for logistics center; Q2 free cash flow outflow DKK 105m.

• Q2 profit after tax: DKK 24m (vs. DKK 2m last year); H1 profit after tax: DKK 83m (vs. DKK 51m).

Outlook and guidance

• Revenue guidance for FY 2024/25 raised to 5–7% currency-neutral growth (from 4–7%), with EBITDA margin before special items expected at 14.5–15.5%.

• Investments (excl. M&A) expected at DKK 650m, including DKK 325m for logistics center.

• Confident in delivering DKK 140 million in synergies by 2025/2026, with progress on track.

• Expect continued growth for the rest of the year, with inventories and logistics prepared for the Christmas season.