Oslo, 25 February 2015: XXL ASA delivered a growth of 30 per cent for the year 2014, driven by new store openings, E-commerce and like-for-like growth. The establishment in Finland is a success with four stores delivering NOK 292 million in revenues, where the first store opened in April 2014. XXL are proud of the expansion into Finland, producing positive EBITDA in the fourth quarter 2014.
The fourth quarter showed a revenue growth of 26 per cent for the Group compared to the same period last year, and the EBITDA-margin* improved by 1.1 percentage points to 13.5 per cent. This improvement was driven by both better gross margin and lower cost percentage, and is achieved despite the establishment in Finland with lower margins.
The Board of Directors proposes a dividend of NOK 2.00 per share for 2014.
Highlights Q4
- Total revenues of NOK 1 520 million (NOK 1 205 million), up 26 per cent
- E-commerce growth of 88 per cent
- Gross margin of 42.5 per cent, improvement in all markets
- EBITDA before one off cost increased by 38 per cent to NOK 206 million
- Opened four new stores
Outlook
Total operating revenue in January 2015 grew by 22.2 per cent, to NOK 503 million. The start of the year was impacted by the late arrival of winter in Norway and lack of snow in Sweden and Finland.
XXL have signed 7 new lease agreements for new store openings in 2015, and aims for 8-9 new stores in total. The Group expects the new store openings to be back-end loaded. The first new store is expected to be opened during spring in Finland.
The main share of the growth will be outside Norway. Finland is still under establishment and it will be an achievement to deliver positive EBITDA in 2015. Sweden had a good improvement in the margin in 2014 due to the new central warehouse. Margin improvement going forward will not be in the same pace as in 2014.
The Group maintains the following long term objectives (as compared to 2013 figures):
- Like-for-like growth of mid-single digits over time
- E-commerce share of total revenues of low double digits
- Gross margins to be stable. For Norway maintained at the same level, increasing to high 30’s in Sweden and Finland
- EBITDA-margin stable as a result of stable gross margins and operating expenses. In Norway at low 20’s, in Sweden low double digits and in Finland high single digits.
- Reduction in effective tax rate targeted at mid 20’s (already achieved).
Share option program and restricted share units
The Board of Directors has approved a share option program for the management team and key employees, as earlier stated in the IPO prospectus. The program has an estimated cost of around NOK 11 million. The strike price will be equal to the volume weighted average market price the next five trading days, starting today 25 February 2015 and ending 3 March 2015. The grant date will be 3 March 2015 and the options are exercisable after three years, subject to key performance criteria (EBITDA-target) being met and subject to the holder at the time of exercise is employed in XXL.
Further, the Board of Directors approved a program of restricted share units for around 100 employees. The grant will be related to individual bonus agreements for each employee. The allocation price will be equal to the volume weighted average market price the next five trading days, starting today 25 February 2015 and ending 3 March 2015. The shares will vest after three years. The total amount of restricted share units will be available and disclosed soon.
For further information please find attached the quarterly report and the presentation material.
The results will be presented at 08:00 CET by CEO Fredrik Steenbuch and CFO Krister Pedersen. The presentation will take place at our headquarters in Oslo, Strømsveien 245, Alna Senter (entrance on the right side of Maxbo). The presentation will be held in English and will be webcasted at www.xxlasa.com. You may also follow the presentation live by telephone. Dial-in details - +47 21 56 33 18 (Norway) and +44(0) 20 3003 2666 (International), passcode - XXL.
For further queries, please contact:
Tolle O. R. Grøterud, Head of Investor Relations, XXL ASA
Tel: +47 90 27 29 59
E-mail: ir@xxlasa.com
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act