Company announcement no. 17 2023/24, Allerød, 2 February 2024
Interim report
9M 2023/24
(1 April – 31 December 2023)
All-time high revenue and improved earnings in Q3
Webcast
Matas Group will host a webcast for investors
and analysts on Friday, 2 February at 10:00 a.m.
CET. The webcast and the presentation can be
accessed from Matas’ investor website:
https://investor.matas.dk.
Webcast access numbers
for investors and analysts:
DK: +45 78 76 84 90
SE: +46 8 1241 0952
NO: +47 2195 6342
UK: +44 203 769 6819
US: +1 646 787 0157 PIN for all countries: 915912
Link to webcast:
https://matas-events.eventcdn.net/events/q3-
interim-report-202324
Contents
3 All-time high revenue and improved
earnings in Q3
4 Q3 2023/24 highlights
5 9M 2023/24 highlights
6 Key financials
7 Management’s review
10 Q3 and 9M 2023/24 performance
13 Costs and operating performance
16 Statement by the Board of Directors
and the Executive Management
17 Statement of
comprehensive income
18 Statement of cash flows
19 Statement of financial position
20 Statement of changes in equity
22 Notes
29 Interim financial highlights
30 Additional information
Page 2 of 31
Matas Group | Interim report – 9M 2023/24
Q3
21/22
6.6
6.8
11.1
Q3
22/23
Q3
23/24
Q3
21/22
Q3
22/23
Q3
23/24
1,378
1,396
2,508
Q3
21/22
Q3
22/23
Q3
23/24
284
296
424
• 9M 2023/24 includes KICKS Group AB
("KICKS") from completion of the acquisition
on 31 August 2023, hence four months of
financial performance. All numbers for
9M and Q3 2023/24 reflect the combined
business for four months, Matas Group,
unless stated otherwise.
• Matas Group generated a total revenue
of DKK 2,508 million in Q3 2023/24
corresponding to a year-on-year increase
of 80% from DKK 1,396 million in Q3 2022/23.
Organic growth in Q3 was 9%.
• Gross margin was 43.7% in the quarter, in
line with expectations and 0.8 percentage
points below last year due to KICKS
acquisition, channel mix and assortment
expansion.
• EBITDA before special items came to DKK
424 million in Q3 2023/24 compared to
DKK 296 million last year, and the EBITDA
margin before special items was 16.9% in
the quarter against 21.2% last year, primarily
reflecting the KICKS acquisition.
• Profit for the period amounted to DKK 163
million after tax compared to DKK 147 million
last year. Q3 2023/24 was impacted by
All-time high revenue and improved earnings in Q3
“Matas and KICKS' first Christmas as one Nordic company was a rock-solid success. Despite
macroeconomic uncertainty and ongoing integration work, the Group executed flawlessly, grew
sales in all markets and channels and improved underlying earnings. Given the strong Q3, we
upgraded our revenue guidance on 9 January.”
Gregers Wedell-Wedellsborg, Matas Group CEO
Customer transactions
Millions
Revenue
DKKm
EBITDA before special items
DKKm
3.9 KICKS
983 KICKS
special items of DKK 20 million related to the
integration of KICKS.
• Free cash flow was an inflow of DKK 560
million in Q3 2023/24 compared with an
inflow of DKK 382 million in Q3 2022/23,
primarily driven by cash flow from
operations from KICKS.
• On 9 January 2024, Matas Group upgraded
its guidance for the financial year 2023/24
to revenue in the range of DKK 6,650-6,750
million (previously DKK 6,400-6,600 million).
Expectation to EBITDA margin before special
items was maintained at around 15%, and
CAPEX, excl. M&A, was maintained at
DKK 500-525 million. Please see company
announcement no. 16 2023/24 for
assumptions related to the guidance.
Page 3 of 31
Matas Group | Interim report – 9M 2023/24
Q3 2023/24 highlights
• Matas Group generated a total revenue of
DKK 2,508 million in Q3 2023/24 a year-on-
year increase of 80% from DKK 1,396 million
in Q3 2022/23. Organic growth was 9%.
KICKS grew 3% in local currency.
• Organic growth online was 23% and stores
grew 4%. KICKS grew both in stores and
online. Both Matas and KICKS generated all-
time high revenue in Q3.
• Customer traffic was strong, and the
organic number of transactions increased
by 7.6% to 7.3 million, and the organic
average basket size grew by 1.8% to DKK 206
per transaction compared to Q3 last year.
• Gross profit for Q3 2023/24 amounted to DKK
1,096 million, up from DKK 621 million in Q3
2022/23. The gross margin was 43.7%, down
from 44.5% in Q3 2022/23 due to acqusition
of KICKS, channel mix and assortment
expansion.
• Other external costs amounted to DKK
274 million in Q3 2023/24, up from DKK
105 million in Q3 2022/23, driven by KICKS
acquisition and increased online sales.
Other external costs include special items of
DKK 17 million in Q3 2023/24, attributable to
the KICKS integration.
• Q3 2023/24 staff costs amounted to DKK 417
million, up from DKK 220 million in Q3 2022/23
driven by KICKS and increased online sales.
Staff costs include special items of DKK 3
million in Q3 2023/24 attributable to the
KICKS integration.
• EBITDA before special items came to DKK
424 million in Q3 2023/24 compared to DKK
296 million last year, and the EBITDA margin
before special items was 16.9% in the quarter
against 21.2% last year, primarily reflecting
the KICKS acquisition.
• The total amortisation, depreciation and
impairment charges were DKK 155 million in
Q3 2023/24, up by DKK 61 million and mainly
attributable to KICKS.
• Profit for the period amounted to DKK 163
million after tax compared to DKK 147 million
last year. Q3 2023/24 was impacted by
special items of DKK 20 million related to the
integration of KICKS and higher interest rates.
• Free cash flow was an inflow of DKK 560
million in Q3 2023/24 compared with an
inflow of DKK 382 million in Q3 2022/23,
primarily driven by perfomance and cash
flow from KICKS, and partly due to timing
effects.
Page 4 of 31
Matas Group | Interim report – 9M 2023/24
9M 2023/24 highlights
• Matas Group generated a total revenue
of DKK 4,943 million in 9M 2023/24
corresponding to a year-on-year increase of
43.8% from DKK 3,439 million in 9M 2022/23
when the Group did not own KICKS. Organic
growth was 8.8%.
• Revenue was up across all sales channels.
• Customer traffic was strong, and the
number of transactions increased by
34.5% to 23.7 million for the Group, and the
average basket size grew by 7.4% to DKK 205
per transaction.
• Gross profit for 9M 2023/24 was DKK 2,174
million, up by DKK 644 million from DKK 1,530
in 9M 2022/23. The gross margin was 44.0%
down from 44.5%.
• Other external costs amounted to DKK 538
million in 9M 2023/24, up by DKK 269 million
from DKK 269 million in 9M 2022/23.
• Staff costs amounted to DKK 914 million in
9M 2023/24, up from DKK 618 million in 9M
2022/23.
• 9M 2023/24 EBITDA before special items
amounted to DKK 802 million, against DKK
647 million in 9M 2022/23. The EBITDA margin
before special items was 16.2% against
18.8% in 9M 2022/23.
• The total amortisation, depreciation and
impairment charges were DKK 359 million in
9M 2023/24, up by DKK 89 million and mainly
attributable to KICKS.
• In 9M 2023/24 adjusted profit after tax
amounted to DKK 316 million against DKK
294 million in 9M 2022/23.
• Free cash flow excluding acquisition of
subsidiaries and operations was an inflow
of DKK 599 million in 9M 2023/24, compared
with an inflow of DKK 543 million in 9M
2022/23.
• For 9M 2023/24 cash flow for acquisition of
subsidiaries and operations were an outflow
of DKK 692 million for KICKS, net DKK 617
million including KICKS' cash at the time
of the acquisition of DKK 75 million. For
9M 2022/23 cash flow for acquisition of
subsidiaries and operations were an outflow
of net DKK 2 million for the remaining shares
in Miild A/S.
Page 5 of 31
Matas Group | Interim report – 9M 2023/24
Key financials
(DKKm)
Q3
2023/24
Q3
2022/23
9M
2023/24
9M
2022/23
Statement of comprehensive income
Revenue 2,508.0 1,396.2 4,943.5 3,438.9
Gross profit 1,095.5 620.9 2,174.2 1,529.9
EBITDA 404.5 295.9 722.4 642.6
EBIT 249.4 201.4 363.1 372.3
Net financials (29.3) (12.6) (74.0) (34.9)
Profit before tax 220.1 188.8 289.1 337.4
Profit for the period after tax 163.2 147.3 213.8 263.1
Special items included in EBITDA 19.6 - 79.9 4.8
EBITDA before special items 424.1 295.9 802.3 647.4
Adjusted profit after tax 190.6 157.1 315.5 294.4
Statement of financial position
Total assets 8,878.6 6,149.0
Total equity 3,527.1 3,345.2
Net working capital (46.3) (119.4)
Net interest-bearing debt 2,490.3 1,235.0
Statement of cash flows
Cash flow from operating activities 701.9 433.9 882.1 724.1
Cash flow from investing activities (142.3) (51.5) (283.1) (181.4)
Free cash flow excl. acquisitions of subs. 559.6 382.4 599.0 542.7
Acquisition of subsidiaries and operations - - (617.2) (1.5)
Free cash flow 559.6 382.4 (18.2) 541.2
(DKKm)
Q3
2023/24
Q3
2022/23
9M
2023/24
9M
2022/23
Ratios
Revenue growth 79.6% 1.3% 43.8% 1.9%
Organic growth 9.2% 1.2% 8.8% 1.8%
Gross margin 43.7% 44.5% 44.0% 44.5%
EBITDA margin 16.1% 21.2% 14.6% 18.7%
EBITDA margin before special items 16.9% 21.2% 16.2% 18.8%
EBIT margin 9.9% 14.4% 7.3% 10.8%
Cash conversion 138.7% 139.7% 84.7% 88.8%
Earnings per share, DKK 4.29 3.88 5.62 6.95
Diluted earnings per share, DKK 4.25 3.85 5.56 6.89
Share price, end of period, DKK 115.4 69.7
ROIC before tax including goodwill ** 12.8% 10.3%
ROIC before tax excluding goodwill ** 48.0% 58.4%
Net working capital as a percentage of
LTM revenue (0.8)% (2.7)%
Investments as a percentage of revenue 5.7% 3.7% 5.7% 5.3%
Net interest-bearing debt/EBITDA before
special items ** 2.2 1.5
Number of transactions (millions)* 11.15 6.76 23.74 17.65
Average basket size (DKK)* 222.9 202.8 204.8 190.8
Number of stores 490 262
Club members Matas and KICKS (millions) 5.72 1.84
Club Matas Plus members (thousands) 94.2 65.6
Average number of employees (FTE) 3,614 2,215 2,766 2,142
* For definitions of key financials, see page 95 of the 2022/23 Annual Report.
** LTM EBITDA includes pro forma financials of KICKS LTM.
Page 6 of 31
Matas Group | Interim report – 9M 2023/24
Management’s
review
Both Matas and KICKS have been focusing on
delivering Q3, whilst working on integrating
the two companies.
Q3 delivered all-time high revenue for both
companies, strongly supported by the
continued assortment expansion in Matas.
The 9M interim report includes the
performance in KICKS from September to
December, but otherwise fully consolidated
into the 9M statement.
Matas
Strategic initiatives in Q3 2023/24
In August 2021, Matas launched its five-
year Growing Matas strategy. Based on the
purpose ‘Health and Beauty for Life’, Matas
will grow by selling more to existing customers
– especially the 2.0 million Club Matas
members –driven by an expansion of the
assortment.
Commercial: Expand assortment
• The fast assortment expansion continued
with the addition of 86 new brands and
1,200 new SKUs online during Q3. Products
were launched both within new and existing
categories, some of the most important
ones were Dr Jart+, The Body Shop, Moshi
Moshi Mind and Womanizer. Out of the
86 brands, 28 brands were launched via
dropship.
• The new brands launched during 2022/23
and 2023/24 contributed to approximately
half of the Q3 2023/24 revenue growth.
E-commerce: Extend market leadership
• Matas online continued to grow at a
high rate, with 23% revenue growth in
Q3 (following 33% in Q2 and 26% in Q1),
mainly driven by the continued assortment
expansion and increase in number of
transactions as seen over the last quarters.
• Matas.dk increased its position as the
second most frequently visited web shop
in Denmark in Q3 2023 (Dansk Industri
e-commerce tracker).
Connected retail: Consolidate
and connect stores
• During the quarter, we relocated one store
in Hasseris to a significantly better location,
extended our store in Kolding Storcenter
and opened a new store located on
Christianshavn in Copenhagen. The store
NPS remained high and increased from Q3
last year.
• Store turnover from “endless aisles” (sale of
products from matas.dk through the stores)
increased significantly in Q3 compared to
the same period last year.
• We tested "your digital colleague", AI at
Mobil POS that can help employees answer
questions from customers, in 5 stores in
December with promising results.
• More than one million unique Club Matas
members shopped with Matas during
December.
Page 7 of 31
Matas Group | Interim report – 9M 2023/24
Management’s review
Brands: Grow portfolio of House Brands
• The KICKS owned makeup brand Beauty
Act was launched on matas.dk and well
received by customers.
• The two biggest brands in Matas, Matas
Striberne and Nilens Jord, took market
shares in Denmark with growth of 12%
and 14% respectively following strong new
launches.
• For Matas private label sales grew 8.9% in Q3
and accounted for 15.2% of retail revenues.
Logistics: Automate logistics
• The construction of Matas Logistics Center
(MLC), which will more than double Matas
overall capacity of web orders when
fully operational in 2025, is progressing
according to plan. The building permit from
Allerød municipality was received and the
construction of the building is well on its
way.
• The existing webshop facilities in Humlebæk
continue to offer adequate room for further
assortment expansion in the years to come.
Internationalisation: Geographical
expansion
• We are strengthening our presence of Matas
Beauty brands in Germany, with listing
agreements of 15 further doors secured,
bringing the total store count to 240 doors
by March 2024. Nilens Jord is available in
70 doors of which around one third are not
selling Matas Beauty brands.
ESG/CSR: Impact society
in a positive way
• During Q3, Matas has continued its focus
on the social aspect. Matas continued
the five-day intensive training program ,
partnering with True North, to give the next
more than a 100 new Matas trainees better
tools to deal with issues related to mental
health and wellbeing. The programme is
now an integrated part of the Matas trainee
education going forward. Furthermore,
Matas initiated a fundraiser in December
among its Club Matas members to support
the non-profit organisation GirlTalk.dk and
signed a partnership agreement with the
Hidden Disability Sunflower Scheme to
support both customers and employees with
hidden disabilities.
Page 8 of 31
Matas Group | Interim report – 9M 2023/24
KICKS
• KICKS operates in Sweden, Norway and
Finland with 227 stores and online. The
online business consists of two concepts
within Beauty, KICKS and Skincity. Skincity,
an online skincare clinic within the premium
segment, was acquired by KICKS in January
2023 and is now fully integrated into KICKS
platforms and operations.
• Q3 is the most important sales period of the
year for KICKS. Record sales were achieved
in Q3 both in stores and online, driven by
a very successful execution of Black Week
and Christmas shopping.
Seamless omni experience
• A key priority for KICKS is to ensure relevant
and competitive customer offers in all
channels with the ability to order online,
and pick up in store within less than 4 hours
as a pillar (Click Express).
Unique customer offering
• The customer offering was improved in Q3
with the roll-out of successful online brands
Nars and Benefit to selected stores in all
three markets and the launch of Too Faced
in Finland and Norway. KICKS community
Beauty Talks was also launched in Norway.
Management’s review
Supply Chain transformation
• In Q3, KICKS inaugurated the central Nordic
omni warehouse located outside Stockholm,
Sweden and successfully moved fulfillment
of Skincity e-com orders. Renegotiations
were finalised with suppliers, with additional
support for new logistic flow of goods to our
sales channels. The omni warehouse will be
fully ramped up with KICKS volumes during
Q4 2023/24.
ESG
• KICKS acknowledged the international
mental health day with a “round-up”
campaign in all stores during the month of
October, where customers contributed to
collaboration partners Tjejzonen, Mental
Helse and Mieli.
Page 9 of 31
Matas Group | Interim report – 9M 2023/24
66
33
1
55
29
14
2
Q3 and 9M 2023/24 performance
Revenue
Matas Group generated total revenue of DKK
2.508 million in Q3 2023/24, a year-on-year
increase of 80% from DKK 1,396 million in Q3
2022/23. Retail sales were up by 81.2% to DKK
2,484 million.
Total revenue grew DKK 1,112 million
compared to Q3 2022/23, whereof organic
revenue growth was 9.2% or DKK 129 million
and the remaining 70.4% or DKK 983 million
related to KICKS. KICKS grew 3% in local
currency with growth in both stores and
online. Both Matas and KICKS achieved an all-
time high revenue for Q3.
DKK 760.5 million of the KICKS revenue was
generated within the High-End Beauty
category in Q3 2023/24 and the rest in Mass
Beauty thus reflecting the significant growth
in both categories in Q3 2023/24 compared to
last year.
Growing sales by DKK 702 million, the physical
stores recorded the largest absolute increase
and online grew sales by DKK 412 mainly due
to the acquisition of KICKS Group AB. Organic
revenue in stores grew by 3.8%, while online
had an organic growth of 23.1% compared to
Q3 2022/23.
Revenue by categories and sales channels
(DKKm)
Q3
2023/24
Q3
2022/23
Growth
(%)
9M
2023/24
9M
2022/23
Growth
(%)
Categories
High-End Beauty 1,366.4 575.3 138% 2,229.6 1,251.0 78%
Mass Beauty 717.5 455.8 57% 1,543.9 1,173.7 32%
Health and Wellbeing 357.0 301.5 18% 992.5 843.5 18%
Other 43.6 38.7 13% 95.6 96.6 (1%)
Retail revenue 2,484.5 1,371.3 81% 4,861.6 3,364.8 45%
Retail revenue by category (%)
High-End Beauty 55% 42% 46% 37%
Mass Beauty 29% 33% 32% 35%
Health and Wellbeing 14% 22% 20% 25%
Other 2% 3% 2% 3%
Sales channels
Physical stores 1,667.3 965.8 73% 3,343.9 2,468.1 36%
Online 817.1 405.5 102% 1,517.7 896.7 69%
Wholesale 23.6 24.9 (5%) 81.9 74.0 11%
Total revenue 2,508.0 1,396.2 80% 4,943.5 3,438.8 44%
Revenue by sales channel (%)
Physical stores 66% 69% 67% 72%
Online 33% 29% 31% 26%
Wholesale 1% 2% 2% 2%
Revenue by sales channel (%)
Online
Physical stores
Wholesale
2023/24
Q3
Retail revenue by category (%)
High-End Beauty
Other
Mass Beauty
Health and Wellbeing
2023/24
Q3
Page 10 of 31
Matas Group | Interim report – 9M 2023/24
The number of transactions increased by
64.9% to 11.1 million compared to 6.8 million
in Q3 2022/23, while the average basket size
increased by 9.9% to DKK 223 per transaction
in the quarter compared to DKK 203 in Q3
2022/23. The increase was mainly attributable
to KICKS transaction. The organic number of
transactions increased by 7.6% to 7.3 million
in Q3 2023/24 and the organic average
basket size increased by 1.8% to DKK 206 per
transaction in compared to Q3 2022/23.
Revenue for 9M 2023/24 amounted to DKK
4,943 million corresponding to an increase
of 43.8% from the year earlier period, while
organic sales grew by 8.8%. Revenue was up
across all sales channels.
In 9M 2023/24, the number of transactions
increased by 34.5% to 23.7 million, while the
average basket size grew 7.4% to DKK 205. The
organic number of transactions increased
by 7.4% to 19.0 million in 9M 2023/24 and the
organic average basket size increased by
1.2% to DKK 193 per transaction in 9M 2023/24
compared to 9M 2022/23.
Q3 and 9M 2023/24 performance
Page 11 of 31
Matas Group | Interim report – 9M 2023/24
Q3 and 9M 2023/24 performance
Performance by category
Both High-End and Mass Beauty reported
significantly higher sales in Q3 2023/24
compared to Q3 2022/23 mainly due to the
acquisition of KICKS. The Beauty segment
accounted for 83.9% of the retail revenue,
compared to 75.2% in Q3 2022/23.
Health & Wellbeing was the primary growth
driver in both absolute and relative terms
when looking at the organic performance.
Sales of special skincare and health products
recorded ongoing significant growth during
the quarter, the latter supported by the Fixed
Low Price programme.
For Matas the private label sales, including
Nilens Jord and Miild, accounted for 15.2% of
the revenue generated by Matas stores and
matas.dk in Q3 2023/24, same level as Q3
2022/23.
In 9M 2023/24, the Beauty categories had
the highest absolute growth partly due to
the acquisition of KICKS. Organically, Health
& Wellbeing was the primary growth driver
in 9M 2023/24 and sales grew significantly
compared to 9M 2022/23.
Performance by sales channel
Physical stores grew revenue by 72,6% or DKK
702 million to DKK 1,667 million compared to
Q3 2022/23. Organic revenue increased by
3,8% in stores. The number of Matas stores at
31 December 2023 amounted to 263, a year-
on-year increase of one, while KICKS had 227
physical stores at 31 December 2023, bringing
the Group to a total of 490 stores.
Online sales were up by 101.5% or DKK 412
million to DKK 817 million. The organic online
business grew 23.1%. Overall, online sales
accounted for 32.6% of Q3 2023/24 revenue
against 29.0% in Q3 2022/23.
In Q3 2023/24, wholesale fell by DKK 1.3 million
to DKK 24 million.
Revenue for 9M 2023/24 amounted to DKK
4,943 million, an increase of 43.8% from the
year-earlier period. Physical stores grew
revenue by 35.5%, while online sales were up
by 69.3%. The increase was mainly attributable
to the KICKS acqusition.
Wholesale reported revenue growth of DKK 7.9
million to DKK 82 million in 9M 2023/24.
Categories
Matas Group is characterised by its wide
assortment of beauty, personal care, health,
wellbeing and problem-solving household
products. This broad product range creates
a unique one-stop retail value proposition
for Matas Group’s customers in the shape of
four categories:
High-End Beauty: Luxury beauty products,
including cosmetics, skincare and haircare
products and fragrances.
Mass Beauty: Everyday beauty products
and personal care, including cosmetics,
skincare and haircare products.
Health and Wellbeing: MediCare (OTC
medicine and nursing products). Vitamins,
minerals, health supplements, specialty
foods and herbal medicinal products.
Sports, nutrition and exercise. Mother and
child. Personal care products (oral, foot
and intimate care and hair removal) and
special skincare.
Other: Clothing and accessories (footwear,
hair ornaments, jewellery, toilet bags,
etc.). House and gardening (cleaning and
maintenance, electrical products, interior
decoration and textiles) and other.
Sales channels
At 31 December 2023, Matas consisted of
263 physical stores – 262 stores in Denmark
and one on the Faroe Islands. In addition,
Matas has one associated store in
Greenland. KICKS consisted of 227 physical
stores at 31 December 2023. 66% of Q3
2023/24 revenue was generated by Matas
Groups' 490 physical stores.
In addition, Matas was present online
through matas.dk, nilensjord.dk and
several web shops operated by Firtal.
KICKS is present online through kicks.se/.
no/.fi and skincity.com/se/no/fi. 33% of
revenue was generated through Matas
Groups' online channels.
Wholesale mainly consists of wholesale
from Web Sundhed, Grænn and
international wholesale of Matas’ house
brands in Germany, but it also includes
value adjustments of Club Matas points.
Wholesale accounted for 1% of revenue in
the quarter.
Page 12 of 31
Matas Group | Interim report – 9M 2023/24
Costs
(DKKm)
Q3
2023/24
Q3
2022/23 Growth
Other external costs 274.4 105.3 160.6%
- of which special items 17.0 -
As a percentage of revenue 10.9% 7.5%
Staff costs 416.6 219.7 89.6%
- of which special items 2.6 -
As a percentage of revenue 16.6% 15.7%
Costs
(DKKm)
9M
2023/24
9M
2022/23 Growth
Other external costs 538.0 269.2 99.9%
- of which special items 65.3 4.8
As a percentage of revenue 10.9% 7.8%
Staff costs 913.8 618.1 47.8%
- of which special items 14.6 -
As a percentage of revenue 18.5% 18.0%
Costs and operating performance
Gross profit for Q3 2023/24 amounted to DKK
1,095.5 million, up from DKK 620.9 million in
Q3 2022/23. KICKS contributed with DKK 422
million of the total increase of DKK 475 million.
The gross margin for Q3 2023/24 was 43.7%,
down from 44.5% in the year-earlier period
due to KICKS acquisition, channel mix and
assortment expansion.
Gross profit for 9M 2023/24 amounted to DKK
2,174 million, up by DKK 644 million from DKK
1,530 in 9M 2022/23. The gross margin was
44.0% down from 44.5%.
Adjusted for special items, overall costs (other
external costs and staff costs) amounted to
26.8% of revenue in Q3 2023/24 against 23.3%
the year before. Reported costs in the quarter
amounted to 27.6% of revenue and were up by
DKK 366 million compared to Q3 2022/23.
Other external costs amounted to DKK 274
million in Q3 2023/24, up by DKK 169 million
from DKK 105 million in Q3 2022/23.
Adjusted for special items of DKK 17 million
related to the KICKS integration, other external
costs increased by DKK 152 million. The
increase was mainly driven by the acquisition
of KICKS, as well as execution of the Growing
Matas assortment expansion and KICKS’ and
Matas’ continuing digital growth.
Other external costs adjusted for special items
accounted for 10.3% of revenue in Q3 against
7.5% the year before. Reported other external
costs accounted for 10.9% of revenue in the
quarter.
Other external costs amounted to DKK 538
million in 9M 2023/24, up by DKK 269 million
from DKK 269 million in 9M 2022/23.
Q3 2023/24 staff costs amounted to DKK 417
million, up by DKK 197 million from DKK 220
million in Q3 2022/23. Staff costs include
special items of DKK 3 million in Q3 2023/24,
attributable to the KICKS integration. There
were no special items in Q3 2022/23.
The increase in staff costs was besides the
KICKS acquisition related to increase in staff
cost due to salary increases (collective wage
agreements) and increased online sales as
well as recruitment of new competencies to
execute the Growing Matas Group strategy.
Staff costs adjusted for special items
accounted for 16.5% of revenue in Q3 against
15.7% in Q3 2022/23. Reported staff costs
accounted for 16.6% of revenue in Q3 2023/24.
Staff costs amounted to DKK 914 million in 9M
2023/24, up from DKK 618 million in 9M 2022/23.
At 31 December 2023, Matas Group had an
average of 2,766 full-time employees, against
2,142 at 31 December 2022. The addition
mainly relates to four months average of KICKS
employees.
Page 13 of 31
Matas Group | Interim report – 9M 2023/24
Costs and operating performance
EBITDA before special items came to DKK 424
million against DKK 296 million in Q3 2022/23
and EBITDA margin before special items was
16.9%, against 21.2% in the year-earlier period,
primarily linked to KICKS acquisition. Q3
2023/24 reported EBITDA was DKK 405 million.
9M 2023/24 EBITDA before special items
amounted to DKK 802 million, against DKK
647 million in 9M 2022/23. The EBITDA margin
before special items was 16.2% against 18.8%
in 9M 2022/23.
Amortisation, depreciation
and impairment
The total amortisation, depreciation and
impairment charges were up by DKK 61 million
to DKK 155 million in Q3 2023/24, the increase
was mainly attributable to KICKS.
Net financials
Net financial expenses increased by DKK 17
million to a net expense of DKK 29 million in
Q3 2023/24, due to interest rate increase and
higher interest bearing debt.
Profit for the period
Profit for the period amounted to DKK 163
million after tax, against DKK 147 million in Q3
2022/23. Adjusted profit after tax amounted
to DKK 191 million in Q3 2023/24 compared to
DKK 157 million in Q3 2022/23.
In 9M 2023/24, adjusted profit after tax
amounted to DKK 316 million against DKK 294
million in 9M 2022/23.
Statement of financial position
Total assets amounted to DKK 8.879 million on
31 December 2023, up from DKK 6,149 million
at 31 December 2022.
Non-current assets increased by DKK 1.433
million to DKK 6.396.
Current assets totalled DKK 2,483 million, a
year-on-year increase of DKK 1.297 million.
Inventories amounted to DKK 1.818 million at 31
December 2023 an increase of DKK 853 million
compared to the end of Q3 2022/23. KICKS
accounted for DKK 723 million at 31 December
2023. Inventories accounted for 30.3% of LTM
revenue at 31 December 2023 compared
to 21.9% at 31 December 2022. Excluding
KICKS, inventories accounted for 22.8% of LTM
revenue.
Trade receivables increased by DKK 97 million
to DKK 143 million. KICKS accounted for DKK 57
million. Trade payables increased by DKK 548
million year on year. KICKS accounted for DKK
452 million.
Net working capital excluding deposits was
negative by DKK 46 million at 31 December
2023 against a negative amount of DKK 119
million at 31 December 2022.
Cash and cash equivalents amounted to DKK
421 million, up from DKK 132 million the year
before.
Equity amounted to DKK 3,527 million at 31
December 2023, compared to DKK 3,345
million at 31 December 2022.
Net interest-bearing debt amounted to DKK
2,490 million at 31 December 2023, a year-
on-year increase of DKK 1,255 million. Of this
increase DKK 719 million was attributable to
higher lease liabilities. The gearing ratio was
2.2 times LTM EBITDA before special items,
which is in line with our long-term target
between 2 and 3.
Gross interest-bearing debt stood at DKK 2.912
million at 31 December 2023, including lease
liabilities of DKK 1.155 million. At 31 December
2022 gross interest-bearing debt stood at DKK
1,367 million, including lease liabilities of DKK
419 million.
Cash flows
(DKKm)
Q3
2023/24
Q3
2022/23
9M
2023/24
9M
2022/23
Cash generated from operations 701.9 467.2 882.1 757.4
Cash flow from investing activities (142.3) (51.5) (900.3) (182.9)
Free cash flow excl. acquisitions of subs. 559.6 382.4 599.0 542.7
Acquisition of subsidiaries and operations - - (617.2) (1.5)
Free cash flow 559.6 382.4 (18.2) 541.2
Cash flows from financing activities (410.3) (293.9) 390.1 (437.8)
Page 14 of 31
Matas Group | Interim report – 9M 2023/24
Costs and operating performance
At 31 December 2023, the Company’s share
capital consisted of 38,291,492 shares of DKK
2.50 each, corresponding to a share capital
of DKK 95,728,730. 210,000 treasury shares was
purchased for future incentive programmes
and 185,442 shares were vested in the period
under review in connection with the exercise
of the 2020/21 incentive programme. Matas
held 382,981 treasury shares at 31 December
2023.
Statement of cash flows
Cash generated from operations was an
inflow of DKK 702 million in Q3 2023/24 against
an inflow of DKK 434 million in Q2 2022/23
corresponding to an increase of DKK 268
million.
Cash generated from operations was an
inflow of DKK 882 million in 9M 2023/24 against
an inflow of DKK 724 million in 9M 2022/23.
For Q3 2023/24, cash flows from investing
activities were an outflow of DKK 142 million
against an outflow of DKK 52 million in Q3
2022/23. The increase of DKK 110 million was
mainly attributable to MLC.
For 9M 2023/24, cash flows from investing
activities excluding acquisition of subsidiaries
and operations were an outflow of DKK 283
million against an outflow of DKK 181 million in
9M 2022/23.
The Q3 2023/24, free cash flow excluding
acquisition of subsidiaries and operations was
an inflow of DKK 560 million compared to an
inflow of DKK 382 million in Q3 2022/23.
The 9M 2023/24 free cash flow excluding
acquisition of subsidiaries and operations was
an inflow of DKK 599 million, compared to an
inflow of DKK 543 million in 9M 2022/23.
For 9M 2023/24 cash flows for acquisition of
subsidiaries and operations were an outflow of
DKK 692 million for KICKS, net DKK 617 million
including KICKS' cash at the time of the
acquisition of DKK 75 million. For 9M 2022/23
cash flow for acquisition of subsidiaries and
operations were an outflow of net DKK 2 million
for the remaining shares in Miild A/S.
Return on invested capital
The return on LTM invested capital before
tax was 12.8% at 31 December 2023 against
10.3% at 31 December 2022. ROIC before tax
excluding goodwill was 48.1% at 31 December
2023 against 58.4% at 31 December 2022.
Events after the date of the statement of
financial position
No subsequent events have occurred that
materially affect the Matas Group's financial
position.
In January 2024, Matas refinanced its
acquisition bridge facility and increased its
Revolving Credit Facility.
Significant risks
Matas Group is exposed to operational risks
affecting the retail industry in general as
well as in the Health and Beauty industry. If
the current macroeconomic environment
leads to a slowing down of the economic
activity, Matas Group’s business could suffer.
In addition, Matas Group is to some extent
exposed to financial risks such as interest rate,
liquidity, currency and credit risk.
Page 15 of 31
Matas Group | Interim report – 9M 2023/24
Executive Management
Group CEO Group CFO
Board of Directors
Page 16 of 31
Matas Group | Interim report – 9M 2023/24
(DKKm)
Q3
2023/24
Q3
2022/23
9M
2023/24
9M
2022/23
Revenue 2,508.0 1,396.2 4,943.4 3,438.9
Cost of goods sold (1,412.5 ) (775.3 ) (2,769.2 ) (1,909.0 )
Gross profit 1,095.5 620.9 2,174.2 1,529.9
Other external costs (274.4 ) (105.3 ) (538.0 ) (269.2 )
Staff costs (416.6 ) (219.7 ) (913.8 ) (618.1 )
Amortisation, depreciation and impairment (155.1 ) (94.5 ) (359.3 ) (270.3 )
EBIT 249.4 201.4 363.1 372.3
Share of profit or loss after tax of associates 0.2 0.2 0.4 (4.9 )
Financial income 4.9 0.1 7.6 0.1
Financial expenses (34.4 ) (12.9 ) (82.0 ) (30.1 )
Profit before tax 220.1 188.8 289.1 337.4
Tax on profit for the period (56.9 ) (41.5 ) (75.3 ) (74.3 )
Profit for the period 163.2 147.3 213.8 263.1
Value adjustment of foreign entities and
loan after tax 18.4 - 40.0 -
Other comprehensive income 18.4 - 40.0 -
Total comprehensive income 181.6 147.3 253.8 263.1
Distributed as follows:
Shareholders of Matas A/S 181.6 147.3 253.8 263.1
Minority shareholders - - - -
Earnings per share
Earnings per share, DKK 4.29 3.88 5.62 6.95
Diluted earnings per share, DKK 4.25 3.85 5.56 6.89
Statement of
comprehensive income
Page 17 of 31
Matas Group | Interim report – 9M 2023/24
Statement of cash flows
(DKKm)
Q3
2023/24
Q3
2022/23
9M
2023/24
9M
2022/23
Profit before tax 220.1 188.8 289.1 337.4
Adjustment for non-cash
operating items etc.:
Amortisation, depreciation and impairment 155.1 94.5 359.3 270.3
Other non-cash operating items, net 2.6 2.1 8.0 5.8
Share of profit or loss after tax of associates (0.3 ) (0.2 ) (0.5 ) 4.9
Financial income (4.9 ) - (7.6 ) -
Financial expenses 34.4 12.9 82.0 30.1
Cash generated from operations
before changes in working capital 407.0 298.1 730.3 648.5
Changes in working capital 306.4 169.1 160.7 108.9
Cash generated from operations 713.4 467.2 891.0 757.4
Interest received - - 2.7 -
Corporation tax paid (11.5 ) (33.3 ) (11.5 ) (33.3 )
Cash flow from operating activities 701.9 433.9 882.2 724.1
Acquisition of intangible assets (33.0 ) (35.0 ) (107.3 ) (103.2 )
Acquisition of property, plant
and equipment (109.3 ) (16.5 ) (175.9 ) (78.2 )
Cash flow from investing activities (142.3 ) (51.5 ) (283.2 ) (181.4 )
Free cash flow excl. acquisition of subs. 559.6 382.4 599.0 542.7
Acquisition of subsidiaries and operations - - (617.2 ) (1.5 )
Free cash flow 559.6 382.4 (18.2 ) 541.2
(DKKm)
Q3
2023/24
Q3
2022/23
9M
2023/24
9M
2022/23
Debt raised with credit institutions - - 1,121.3 -
Debt settled with credit institutions (282.7 ) (238.7 ) (393.1 ) (206.0 )
Interest paid (35.9 ) (11.8 ) (79.4 ) (26.4 )
Repayment of lease liabilities (70.2 ) (43.4 ) (160.6 ) (128.8 )
Dividend paid - - (76.6 ) (76.6 )
Acquisition of treasury shares (21.5 ) (21.5 )
Cash flow from financing activities (410.3 ) (293.9 ) 390.1 (437.8 )
Net cash flow from operating, investing
and financing activities 149.3 88.5 371.9 103.5
Currency adjustment 10.5 - 12.7 -
Cash and cash equivalents,
beginning of period 261.5 43.2 36.7 28.2
Cash and cash equivalents, end of period 421.3 131.7 421.3 131.7
The above cannot be derived directly from the statement of
comprehensive income and the statement of financial position.
Page 18 of 31
Matas Group | Interim report – 9M 2023/24
Statement of financial position
(DKKm) 31 Dec. 2023 31 Dec. 2022 31 March 2023
ASSETS
Non-current assets
Goodwill 4,103.5 3,999.4 3,999.4
Trademarks and trade names 186.3 60.5 58.1
Other intangible assets 399.9 215.3 235.8
Total intangible assets 4,689.7 4,275.2 4,293.3
Property, plant and equipment
Lease assets 1,115.7 396.7 622.3
Land and buildings 90.9 88.7 87.5
Other fixtures and fittings, tools and equipment 82.1 71.0 65.2
Leasehold improvements 71.5 32.0 27.3
Plant in progress 288.7 51.8 59.7
Total property, plant and equipment 1,648.9 640.2 862.0
Investments in associates 1.1 1.4 1.4
Deferred tax 8.6 - -
Deposits 46.4 45.4 44.3
Other securities and equity investments 0.8 0.6 0.7
Total other non-current assets 56.9 47.4 46.4
Total non-current assets 6,395.5 4,962.8 5,201.7
Current assets
Inventories 1,817.5 964.4 911.8
Trade receivables 143.2 46.1 43.7
Corporation tax receivable - 4.7 20.6
Other receivables 32.5 10.0 24.9
Prepayments 68.6 29.3 40.8
Cash and cash equivalents 421.3 131.7 36.7
Total current assets 2,483.1 1,186.2 1,078.5
Total assets 8,878.6 6,149.0 6,280.2
(DKKm) 31 Dec. 2023 31 Dec. 2022 31 March 2023
EQUITY AND LIABILITIES
Equity
Share capital 95.7 95.7 95.7
Translation reserve 40.3 0.3 0.3
Treasury share reserve (42.4 ) (43.5 ) (43.5 )
Retained earnings 3,433.0 3,292.2 3,233.5
Dividend proposed for the financial year - - 76.6
Matas A/S' share of equity 3,526.6 3,344.7 3,362.6
Minority interests 0.5 0.5 0.5
Total equity 3,527.1 3,345.2 3,363.1
Liabilities
Deferred tax 237.1 195.4 198.8
Lease liabilities 792.2 243.4 462.6
Provisions 28.0 28.2 28.0
Credit institutions 1,748.9 947.3 917.7
Other payables 13.0 44.3 13.0
Total non-current liabilities 2,819.2 1,458.6 1,620.1
Credit institutions 8.0 - 110.4
Lease liabilities 362.5 176.0 188.4
Prepayments from customers 275.5 203.4 161.4
Trade payables 1,309.8 762.3 634.1
Corporate tax payable 53.7 - -
Other payables 522.8 203.5 202.7
Total current liabilities 2,532.3 1,345.2 1,297.0
Total liabilities 5,351.5 2,803.8 2,917.1
Total equity and liabilities 8,878.6 6,149.0 6,280.2
Page 19 of 31
Matas Group | Interim report – 9M 2023/24
(DKKm)
Share
capital
Translation
reserve
Treasury
share
reserve
Proposed
dividend
Retained
earnings Total
Minority
interests Total equity
Equity at 1 April 2023 95.7 0.3 (43.5 ) 76.6 3,233.5 3,362.6 0.5 3,363.1
Value adjustment of foreign entities and loan after tax - 40.0 - - - 40.0 - 40.0
Other comprehensive income - 40.0 - - - 40.0 - 40.0
Profit for the period - - - - 213.8 213.8 - 213.8
Total comprehensive income - 40.0 - - 213.8 253.8 - 253.8
Transactions with owners
Dividend paid - - - (76.3 ) - (76.3 ) - (76.3 )
Dividend on treasury shares - - - (0.3 ) 0.3 - - -
Exercise of incentive programme - - 22.6 - (22.6 ) - - -
Acquisition of treasury shares - - (21.5 ) - - (21.5 ) - (21.5 )
Share-based payment - - - 8.0 8.0 - 8.0
Total transactions with owners - - 1.1 (76.6 ) (14.3 ) (89.8 ) - (89.8 )
Equity at 31 December 2023 95.7 40.3 (42.4 ) - 3,433.0 3,526.6 0.5 3,527.1
Statement of changes in equity
Page 20 of 31
Matas Group | Interim report – 9M 2023/24
(DKKm)
Share
capital
Translation
reserve
Treasury
share
reserve
Proposed
dividend
Retained
earnings Total
Minority
interests Total equity
Equity at 1 April 2022 95.7 0.3 (76.0 ) 76.6 3,055.2 3,151.8 0.5 3,152.3
Other comprehensive income - - - - - - - -
Profit for the period - - - - 263.1 263.1 - 263.1
Total comprehensive income - - - - 263.1 263.1 - 263.1
Transactions with owners
Dividend paid - - - (75.9 ) - (75.9 ) - (75.9 )
Dividend on treasury shares - - - (0.7 ) 0.7 - - -
Exercise of incentive programme - - 32.5 - (32.5 ) - - -
Share-based payment - - - - 5.7 5.7 - 5.7
Total transactions with owners - - 32.5 (76.6 ) (26.1 ) (70.2 ) - (70.2 )
Equity at 31 December 2022 95.7 0.3 (43.5 ) - 3,292.2 3,344.7 0.5 3,345.2
Statement of changes in equity
Page 21 of 31
Matas Group | Interim report – 9M 2023/24
Notes
Note 1 – Accounting policies
This interim report is presented in accordance with IAS 34, Interim Financial Reporting as adopted by
the EU and additional disclosure requirements of the Danish Financial Statements Act.
Except as set out below, the accounting policies are consistent with the accounting policies applied in
the consolidated financial statements for 2022/23, to which reference is made.
Changes of accounting policies
Matas Group has implemented the latest IFRS amendments, which took effect on 1 April 2023 and have
been approved by the EU.
None of those amendments have significantly affected recognition and measurement, nor are they
expected to have a material effect on Matas Group in the near future.
Note 2 – Accounting estimates and judgments
The preparation of interim financial statements requires Management to make accounting judgments
and estimates that affect the application of accounting policies and recognised assets, liabilities,
income and expenses. Actual results may differ from these estimates.
The critical accounting estimates and judgments applied are consistent with those applied in the
consolidated financial statements for 2022/23.
Note 3 – Seasonality
The Group’s activities in the interim period were affected by Black Week and Christmas shopping,
which is material to the Group’s overall financial performance.
Note 4 – Revenue
(DKKm)
Q3
2023/24
Q3
2022/23
9M
2023/24
9M
2022/23
Retail sales, physical stores 1,667.3 965.8 3,343.9 2,468.1
Retail sales, online 817.1 405.5 1,517.7 896.7
Wholesale 23.6 24.9 81.9 74.0
Total revenue 2,508.0 1,396.2 4,943.5 3,438.8
In Q3 2023/24, 32.6% of Matas Group’s revenue was generated by its online channels, compared to
29.0% in the year earlier period.
Revenue break down by product groups as follows:
(DKKm)
Q3
2023/24
Q3
2022/23
9M
2023/24
9M
2022/23
High-End Beauty 1,366.4 575.3 2,229.6 1,251.0
Mass Beauty 717.4 455.8 1,543.9 1,173.7
Health and Wellbeing 357.0 301.5 992.5 843.5
Other 43.6 38.7 95.6 96.6
Wholesale sales etc. 23.6 24.9 81.9 74.0
Total revenue 2,508.0 1,396.2 4,943.5 3,438.8
Page 23 of 31
Matas Group | Interim report – 9M 2023/24
Notes
Note 4 – Revenue continued
(DKKm)
Q3
2023/24
Q3
2022/23
9M
2023/24
9M
2022/23
Sale of goods 2,508.0 1,396.2 4,943.5 3,438.8
Sale of services - - - -
Total revenue 2,508.0 1,396.2 4,943.5 3,438.8
Revenue from sales of products through Matas Group stores is recognised when a store sells the
product to the customer. Payment is usually received when the customer receives the product, or, if the
customer pays by credit card, a few days later. Revenue from sales through Matas Group web shops is
recognised and payment is received when the product is sent to the customer.
A small proportion of Matas Group’s revenue is invoiced, e.g. wholesale sales, in which connection a
receivable is recognised.
For the customer loyalty programme at Matas and KICKS, a performance obligation is recognised
at the date of recognition of the sale triggering the allocation of loyalty points. The performance
obligation is measured at the estimated fair value of the points allocated and amounted to DKK 74.7
million at 31 December 2023 (31 December 2022: DKK 61.1 million). The estimated fair value is inherently
subject to some uncertainty with respect to actual future redemption and considering the flexibility of
the customer loyalty programme. Revenue is recognised when the customer uses points, usually over an
average period of three months. Customers have the option of returning products, but the volume of
returns at the end of Q3 was insignificant as was the amount of guarantee commitments.
Note 5 – Segment information
Matas Group is segmented in two reportable segments Matas and KICKS. Management monitors the
profitability of the operating segments separately for the purpose of making decisions about resource
allocation and performance management. Segment results are measured at gross profit as presented
in the table below.
Q3 (DKKm)
Matas
2023/24
KICKS
2023/24
Total
2023/24
Matas
2022/23
KICKS
2022/23
Total
2022/23
Revenue 1,524.7 983.3 2,508.0 1,396.2 - 1,396.2
Cost of goods sold (851.7) (560.9) (1,412.6) (775.2) - (775.2)
Gross profit 673.0 422.4 1,095.4 620.9 - 620.9
Gross margin 44.1% 43.0% 43.7% 44.5% - 44.5%
9M (DKKm)
Matas
2023/24
KICKS
2023/24
Total
2023/24
Matas
2022/23
KICKS
2022/23
Total
2022/23
Revenue 3,743.0 1,200.4 4,943.5 3,438.8 - 3,438.8
Cost of goods sold (2,093.4) (675.9) (2,769.3) (1,908.9) - (1,908.9)
Gross profit 1,649.6 524.5 2,174.2 1,529.9 - 1,529.9
Gross margin 44.1% 43.7% 44,0% 44,5% - 44,5%
Page 24 of 31
Matas Group | Interim report – 9M 2023/24
Notes
Note 6 – Business combinations
Acquisitions in 2023/24
On 31 August 2023, Matas A/S acquired 100% of the shares in KICKS Group AB, including the subsidiaries
KICKS Norge AS, Skincity Sweden AB, Skincity Finland OY, Skincity Norway AS, KICKS Kosmetikkedjan OY,
Axbeautyhouse AB, Myself & Friends AB (together “KICKS”). KICKS was acquired through Matas Sverige
AB.
The total purchase price for the shares amounted to SEK 1,100 million, equivalent to DKK 692 million,
paid fully upon closing of the transaction.
Jointly, the combined entity will operate the market leading beauty and wellbeing omnichannel
retail concept in the Nordics. Through the combination, Matas and KICKS will be able to better serve
customer demand for larger assortment, new brands, access to stores, fast, convenient and inspiring
online shopping and keep a continued focus on personal and expert advisory and service. Matas and
KICKS will serve +5 million club members across the four Nordic markets with almost 500 stores, leading
web shops, +3,800 skilled colleagues, and offer a category leading portfolio of third party brands, own
brands, and services.
Management expects that the acquisition of KICKS will bring synergies of minimum DKK 100 million in
EBITDA once fully phased in by 2025/26. The synergies are expected from increased operating leverage,
customer loyalty, similarities and overlaps in business models, services and marketing strategies, as well
as IT and digitalisation agendas.
The transaction and synergies are expected to provide EPS percentage accretion by 2024/25 and
double-digit EPS percentage accretion by 2025/26.
1
Based on a SEK/DKK exchange rate of 0.6462, NOK/DKK exchange rate of 0.6443, and EUR/DKK exchange rate of 7.4532
(average of April 2023 – December 2023).
Revenue
Since the acquisition, KICKS has contributed with DKK 1,200.4 million in revenues. If KICKS had been
acquired at 1 April 2023, the consolidated revenue 9M 2023/24 would have amounted to DKK 6,076.2
million
1
compared to actual DKK 4,943.5 million.
Acquisition and integration related costs
Special items included in EBITDA in 9M 2023/24 amounted to DKK 79,9 million, hereof DKK 19.6 million in
Q3 2023/24. Special items are related to acquisition of KICKS amounting to DKK 49.1 million and initiation
of the integration of DKK 34.4 million.
For the periods to come, up to DKK 100 million is expected in integration costs, with the majority
expected within the first financial year.
Completion of pre-acquisition balance sheet
The purchase price allocation of the fair value of the identified assets, liabilities and contingent liabilities
is ongoing. Adjustments are therefore expected to be made to items in the opening balance included
below, including the trademark, software, and membership programs. The purchase price allocation
related to the acquisition will be completed within the 12-month period as mandated by IFRS.
Goodwill
The DKK 92 million in goodwill arising from the acquisition derives primarily from the minimum DKK 100
million in EBITDA synergies, as well as from the expected approximately DKK 40 million standalone
improvement to KICKS’ EBITDA, from already invested and executed initiatives. None of the goodwill is
tax deductible.
Page 25 of 31
Matas Group | Interim report – 9M 2023/24
Notes
Note 6 – Business combinations continued
Purchase Price Allocation
(DKKm) 31 Dec. 2023 31 Dec.2022
Cash 75.1 -
Trade receivables 29.6 -
Other receivables and deposits 30.2 -
Prepaid expenses and deferred income 16.5 -
Inventories 626.0 -
Deposits 8.3 -
Plant and equipment and right-of-use assets 684.2 -
Intangible assets, software 87.4 -
Intangible assets, trademarks 131.9 -
Intangible assets, member program 68.3 -
Assets acquired 1,757.5 -
Trade payables (287.8) -
Credit institutions (100.7) -
Lease liability (504.8) -
Deferred tax liability (39.3) -
Other payables (130.2) -
Prepaid income and deferred expenses (94.4) -
Liabilities assumed (1,157.2) -
Net identifiable assets acquired 600.3 -
Goodwill arising on acquisitions 91.9 5.8
Purchase consideration 692.2 5.8
Outflow of cash to acquire subsidiary, net of cash acquired
Cash consideration (692.2) (5.8)
Less balances acquired 75.1 -
Contingent liabilities - 4.3
Net outflow of cash - investing activities (617.1) (1.5)
Acquisitions in 2022/23
Having acquired the remaining 60% of the shares in Miild A/S at 30 September 2022, Matas A/S now
owns all the shares in the company.
Miild A/S is a Danish beauty brand focusing on allergy-friendly cosmetics.
The consideration amounted to DKK 1.5 million in cash, to which should be added a potential earn-out
payment of an estimated DKK 4.3 million. The provisional purchase price allocation shows values added
on acquisition in the form of goodwill of DKK 5.8 million.
Transaction costs in the amount of DKK 0.8 million were incurred in connection with the acquisition. The
transaction costs have been recognised under other external costs for H1 2022/23. Other than this, the
acquisition did not affect activities in H1 2022/23.
Revenue and profit contribution
Revenue and profit for H1 2022/23, calculated as if Miild A/S had been acquired at 1 April 2022,
amounted to DKK 3.7 million and DKK 0.7 million, respectively.
Acquisitions after the reporting period
No acquisition took place after the reporting period.
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Matas Group | Interim report – 9M 2023/24
Notes
Note 7 – Leases
Matas Group's lease assets are as follows:
(DKKm) 31 Dec. 2023 31 Dec. 2022 31 March 2023
Store leases 928.3 345.0 571.0
Administration and warehouse buildings etc. 181.4 48.8 45.4
Cars and other leases 6.0 2.9 5.9
Total lease assets 1,115.7 396.7 622.3
An addition of DKK 513.2 million was recognised as right-of-use assets in connection with the acquisition
of KICKS at 31 August 2023, cf. note 5. in 9M 2023/24 an addition of DKK 160.0 million was recognised
of which DKK 122.0 million was attributable to KICKS' central warehouse in Rosersberg Stockholm in
September.
Matas Group’s lease liabilities are as follows:
(DKKm) 31 Dec. 2023 31 Dec. 2022 31 March 2023
Non-current liabilities 792.2 243.5 462.6
Current liabilities 362.5 177.7 188.4
Total lease liabilities 1,154.7 421.2 651.0
An addition of DKK 504.8 million was recognised as lease liabilities in connection with the acquisition of
KICKS at 31 August 2023, cf. note 5.
Most store leases in Denmark are evergreen contracts as defined in the Danish Business Lease Act and
are consequently subject to terms of notice of 3-12 months. Commercial renting of shops etc. in the
other Nordic countries are not similar to the practice in Denmark, as extensions take place at fixed
intervals and with fixed deadlines for termination/extension. This has been accounted for in recognising
the KICKS leases.
Depreciation as set out below is recognised in the statement of comprehensive income:
(DKKm)
9M
2023/24
9M
2022/23
Store leases etc. 157.7 120.0
Administration and warehouse buildings etc. 20.1 10.6
Cars and other leases 1.7 1.2
Total depreciation of lease assets 179.5 131.8
Lease payments in the amount of DKK 190.8 million were made in 9M 2023/24 (9M 2022/23: DKK 136.8
million).
Interest in the amount of DKK 30.2 million was expensed in 9M 2023/24 (9M 2022/23: DKK 6.7 million).
Matas Group is the lessee of a limited number of premises. For some of these leases, the rent is fully or
partially based on revenue.
Revenue-based rent is not comprised by IFRS 16 and is therefore not included in the above tables.
Revenue-based rent is, as before, recognised under other external costs and amounted to DKK 10.2
million in 9M 2023/24 (9M 2022/23: DKK 3.1 million).
Page 27 of 31
Matas Group | Interim report – 9M 2023/24
Notes
Note 8 – Other payables
(DKKm) 31 Dec. 2023 31 Dec. 2022 31 March 2023
Other non-current payables
Contingent consideration and
deferred purchase price 13.0 44.3 13.0
Total other non-current payables 13.0 44.3 13.0
Other current payables
VAT payable 182.9 91.2 41.0
Holiday pay obligations etc. 123.0 103.4 65.1
Pay-related liabilities
(A tax/social security contributions) 163.5 7.4 52.8
Contingent consideration and deferred purchase price 34.8 - 33.4
Other creditors 18.6 1.5 10.4
Total other current payables 522.8 203.5 202.7
An addition of DKK 130.2 million was recognised as other payables in connection with the acquisition of
KICKS at 31 August 2023, cf. note 5.
Note 9 – Transactions with related parties
Pursuant to Matas A/S’ Remuneration Policy, a total of 185,442 Performance Share Units (PSUs) related to
the Company’s long-term incentive programme (LTIP) for 2020/21 were vested at 23 June 2023.
PSUs were vested at 150% of the original grant. Based on a closing price at 22 June 2023 of DKK 83.5, the
total value of vested PSUs amounted to DKK 15.5 million.
On 30 June 2023, a total of 158,696 PSUs have been granted related to the long-term incentive
programme for 2023/24. A total of 61,726 PSUs were granted to Group CEO Gregers Wedell-Wedellsborg
and a total of 36,307 PSUs have been granted to Group CFO Per Johannesen Madsen.
Note 10 – Subsequent events
No subsequent events have occurred that materially affect the Matas Group's financial position.
in January 2024, Matas refinanced its acquisition bridge facility and increased its Revolving Credit
Facility.
Page 28 of 31
Matas Group | Interim report – 9M 2023/24
(DKKm)
Q3
2023/24
Q2
2023/24
Q1
2022/23
Q4
2022/23
Q3
2022/23
Statement of
comprehensive income
Revenue 2,508.0 1,285.4 1,150.0 1,150.7 1,396.2
Gross profit 1,095.5 572.6 506.1 484.5 620.9
EBITDA 404.5 138.1 179.8 161.6 295.9
EBIT 249.4 25.0 88.7 50.8 201.4
Net financials (29.3) (21.4) (23.3) (15.5) (12.6)
Profit before tax 220.1 3.6 65.4 35.4 188.8
Profit for the period 163.2 1.6 49.0 17.6 147.3
Statement of financial position
Total assets 8,878.6 8,624.9 6,378.0 6,280.2 6,149.0
Total equity 3,527.1 3,364.4 3,337.4 3,363.1 3,345.2
Net working capital (46.3) 261.2 (50.0) 23.0 (119.4)
Net interest-bearing debt 2.490.3 3,003.3 1,482.8 1,642.4 1,235.0
Statement of cash flows
Cash flow from operating activities 701.9 (71.2) 251.5 (45.2) 433.9
Cash flow from investing activities (142.3) (90.2) (50.6) (72.9) (51.5)
Free cash flow excl. acquisitions of
subsidiaries and operations 559.6 (161.4) 200.9 (118.1) 382.4
Acquisitions of subsidiaries and
operations - (617.2) - - -
Free cash flow 559.6 (778.6) 200.9 (118.1) 382.4
Net cash flow from operating,
investing and financing activities 149.3 192.8 29.8 (94.9) 88.5
(DKKm)
Q3
2023/24
Q2
2023/24
Q1
2022/23
Q4
2022/23
Q3
2022/23
Key performance indicators
Number of transactions (millions) 11,1 6.6 6.0 5.5 6.8
Average basket size (DKK) 222.9 182.7 188.2 182.3 202.8
Total retail floor space
(thousands of square metres) 104.9 104.1 53.7 53.3 53.7
Avg. revenue per square metre
(DKK thousands) - LTM 83.3 82.7 83.6 81.9 80.6
Organic growth 9.2% 8.0% 9.2% 8.3% 1.2%
Adjusted figures
EBITDA 404.5 138.1 179.8 161.6 295.9
Special items included in EBITDA 19.6 39.1 21.1 - -
EBITDA before special items 424.1 177.2 200.9 161.6 295.9
Depreciation and
amortisation of software (139.6) (96.2) (81.2) (97.8) (81.9)
EBITA 288.1 81.0 119.7 63.8 214.0
Adjusted profit after tax 190.6 47.0 77.9 27.8 157.1
Gross margin 43.7% 44.5% 44.0% 46.1% 44.5%
EBITDA margin 16.1% 10.7% 15.6% 15.4% 21.2%
EBITDA margin
before special items 16.9% 13.8% 17.5% 15.4% 21.2%
EBITA margin 11.5% 6.3% 10.4% 6.1% 15.3%
EBIT margin 9.9% 1.9% 7.7% 4.8% 14.4%
Interim financial highlights
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Matas Group | Interim report – 9M 2023/24
Forward-looking statements
This interim report contains statements relating to the future, including statements
regarding Matas Group’s future operating results, financial position, cash flows, business
strategy and future targets. Such statements are based on Management’s reasonable
expectations and forecasts at the time of release of this report. Forward-looking
statements are subject to risks and uncertainties and a number of other factors, many
of which are beyond Matas Group’s control. This may have the effect that actual results
may differ significantly from the expectations expressed in the report. Without being
exhaustive, such factors include general economic and commercial factors, including
market and competitive conditions, supplier issues and financial and regulatory
issues, IT failures as well as any effects of healthcare measures that are not specifically
mentioned above.
Financial calendar 2023/24
The financial calendar for the
remaining part of the 2023/24
financial year is as follows:
7 May 2024
Deadline for the Company’s
shareholders to submit in writing
requests for specific proposals to
be included on the agenda for the
annual general meeting
28 May 2024
Annual report 2023/24
19 June 2024
Annual General Meeting for 2023/24
Contacts
Gregers Wedell-Wedellsborg
Group CEO, phone +45 48 16 55 55
Per Johannesen Madsen
Group CFO, phone +45 48 16 55 55
John Bäckman
Head of Investor Relations & Treasury,
phone +45 22 43 12 54
Klaus Fridorf
Head of Communication,
phone +45 61 20 19 97
Company information
Matas A/S
Rørmosevej 1
3450 Allerød,
Denmark
Phone: +45 48 16 55 55
www.matas.dk
investor.matas.dk
Company reg. (CVR) no. 27 52 84 06
Additional information
Page 30 of 31
Matas Group | Interim report – 9M 2023/24
Design & production: Noted
Matas A/S
Rørmosevej 1
3450 Allerød
Phone: +45 4 8 1 6 5 5 55
investor.matas.dk
CVR no.: 27 52 84 06