Fourlis (H1/Q2:21 results review): The company reported an upbeat set of H1:21 results beating our estimates on all lines, notably on top line (impressive sales recovery in both segments of IKEA and Intersport) and on the net profit line turning to profits rather than losses. In more specific:
§ The Group, realized sales of € 185.7mn, 16.5% higher vs H1:20 (€ 159.5mn)
§ H1:21 EBITDA(OPR), ie reported EBITDA minus financial expense related to IFRS16 impact, was € 13.3mnvs €5.3mn in H1:20, an increase by 155%.
§ Reported EBITDA came in at €22.2mn, a 52.8% y-o-y change beating our estimate by €1.3mn (€20.9mn)
§ Net profit returned to positive ground posting a €0.6mn figure vs losses of €7.2mn in H1:20.
§ Net debt shaped at €95.9mn down from €105.4mn in FY:20 and €102.8mn in H1:20.
§ IKEA sales were strong both in Greece and abroad. Greek sales declined by 6.5% to €61.83mn implying a very strong Q2:21 performance (+22.12% to €39.64mn) assisted by lift of mobility restrictions, new store opening (small IKEA) in Piraeus, strong e-sales take up and recovery of consumption as indicated by the retail sales index growth.
- International IKEA sales continued their Q1:21 upward path growing 24.6% to €49.67mn with Q2:21 coming in also very strong to €256.16mn (+33.93%). EBIT margin also recovered by more than 100bps to 4.37% courtesy of operational leverage and better gross margin (+70bps). Following the successful opening of the “new generation” IKEA stores in Varna, Bulgaria and Piraeus recently, one more “new generation” IKEA store will open in the ‘‘Sofia Mall”, Sofia, Bulgaria.
§ Intersport also posted significant recovery in Greece and abroad. The segment realized sales €74.2mn in H1:21, 38,6% higher y-o-y (€53.6mn in H1:20). Sales in Greece increased by 20.6%, while in the other countries, sales increased by an average of 67.4% versus H1:20. EBIT turned green to €4.76mn smashing our call for losses of €1mn, courtesy of higher consumption, e-sales, store renovation and relocations and new openings.
§ Overall an impressive set of H1:21 performance, with recovery both in sales and profitability margins across all lines. We will attend today’s conference call and revert with an update.
Stay long. OVERWEIGHT (TP UR) reiterated.
The following tables summarize FOURLIS GROUP H1:21 financial performance vs our estimates:
FOURLIS |
2020 |
2021 |
Y-o-Y |
2021 Est. |
Act. vs |
|
||||||
EUR thous. |
Η1 |
Η1 |
(%) |
Η1 |
Est. |
|
||||||
Sales |
159.5 |
185.7 |
16.4% |
154.9 |
19.9% |
|
||||||
EBITDA |
14.5 |
22.2 |
52.8% |
20.9 |
6.3% |
|
||||||
EBITDA Mrg |
-22.5% |
12.0% |
+3,447 bps |
13.5% |
-153 bps |
|
||||||
Net Income |
-7.2 |
0.6 |
107.9% |
-3.13 |
118.3% |
|
||||||
Net Mrg |
-4.5% |
0.3% |
+485 bps |
-2.0% |
+233 bps |
|
||||||
IKEA (€mn) |
H1 2020 (A) |
H1 2021 (A) |
% chng y-o-y |
H1 2021 Est |
Act from Est |
|||||||
IKEA Greece |
66.12 |
61.83 |
-6.50% |
56.20 |
10.00% |
|||||||
IKEA SEE |
39.86 |
49.67 |
24.60% |
45.04 |
10.27% |
|||||||
Total IKEA Sales |
105.99 |
111.49 |
5.20% |
101.25 |
10.12% |
|||||||
Gross Profit |
43.87 |
45.10 |
2.81% |
41.71 |
8.12% |
|||||||
Gross Profit margin |
41.39% |
40.45% |
-94 bps |
41.20% |
-75 bps |
|||||||
EBIT |
3.51 |
4.88 |
38.92% |
6.07 |
-19.74% |
|||||||
EBIT margin |
3.31% |
4.37% |
+106 bps |
6.00% |
-163 bps |
|||||||
|
||||||||||||
Intersport/TAF (€mn) |
H1 2020 (A) |
H1 2021 (A) |
% chng y-o-y |
H1 2021 Est |
Act from Est |
|
||||||
Sports Division Greece |
32.84 |
39.60 |
20.60% |
30.87 |
28.30% |
|
||||||
Sports Division SEE |
20.71 |
34.68 |
67.40% |
22.79 |
52.18% |
|
||||||
Sales |
53.55 |
74.28 |
38.70% |
53.65 |
38.44% |
|
||||||
Gross Profit |
23.49 |
31.57 |
34.41% |
22.80 |
38.44% |
|
||||||
Gross Profit margin |
43.86% |
42.50% |
-136 bps |
42.50% |
+0 bps |
|
||||||
EBIT |
-3.09 |
4.76 |
-253.87% |
-1.00 |
-575.60% |
|
||||||
EBIT margin |
-5.77% |
6.40% |
+1,217 bps |
-1.86% |
+827 bps |
|
||||||
source: Company, BETA Securities Research estimates |
|
|
|
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Conference Call Details: Wednesday September 1st 5pm local Greek Time
• Greek participants: +30 213 009 6000 or +30 210 94 60 800
• UK participants: +44 (0) 800 368 1063
• UK & International: +44 (0) 203 059 5872
• USA participants: +1 516 447 5632