Beter Bed Holding NV: strong performance in first half year with sales growth of 9.9%

Highlights first half 2020

• Strong H1 2020 sales growth of 9.9% to € 103.5 million. Sales in Benelux amounted to € 92.3 million (+10.5% like for like) and New Business amounted to € 11.2 million (+5.4% like for like).
• In Q2 sales growth of 12.0% to € 49.1 million. Benelux amounted to € 44.5 million (+14.2% like for like) and New Business amounted to € 4.6 million (+7.8% like for like) respectively.
• High order intake levels have resulted in record level order book of € 23.5 million (+60.2% versus 30 June 2019), creating a solid buffer given the unprecedented times upcoming.
• Order intake in Benelux in Q2 (+56.6% like for like) and New Business (+23.2% like for like) resulting in H1 increase in order intake of +22.5% like for like.
• Online sales for the Group has grown 71.4%, leading to a channel share of 14.0% particularly due to a strong performance in Q2 of +114.9% in Benelux and +130.3% for New Business.
• Sängjätten has made significant steps towards a better performance.
• The strategic initiatives are starting to pay off resulting in an EBITDA performance of € 14.2 million versus € 11.1 million in 2019 despite COVID-19 closures in Belgium, a higher marketing investment and logistic expenses related to the higher order intake.
• Both banks and shareholders expressed confidence in Beter Bed Holding N.V. with extension of the current financing facilities and conversion of the shareholder loan plus incurred interest into newly issued shares. The conversion of the interest will be based on an average market share price before this publication and the conversion of the principal amount will be based on an average market share price after this publication, the latter with a modest discount. A maximum number of 2.15 million shares can be issued for this transaction. Furthermore, Beter Bed Holding N.V. agreed to decrease the interest rate applicable to the perpetual loan for the next 12 months.
• COVID-19 did affect the Group’s order intake in the last two weeks of March. However, our first and primary focus was the wellbeing of our employees, customers and other stakeholders, allowing the majority of our stores to remain open and delivering our products to our valued customers. Our crisis team focused on further strengthening the relationships with key suppliers ensuring continuity in our supply chain. Furthermore, we repurposed employees towards the online proposition to meet the shifting purchasing behaviour of our customers. After the first few weeks, we saw a steep increase in revenues and results, with a significant growth in our online channel.

John Kruijssen, CEO of Beter Bed Holding N.V., comments:

"After a strong start of the year during Q1 we experienced the effect of COVID-19 leading to an enormous drop in traffic and order intake in the last two weeks of March. We responded immediately by stepping up the pace online, through the implementation of precautionary measures in order to keep the stores, warehouse and logistics as well  as the offices in business and through well-chosen marketing campaigns to stay connected with our consumers. In April, we experienced the first positive effects of this approach and through May and June, we saw spectacular improvements of our order intake in both online and offline. We recorded more traffic, improved conversion and higher ticket value per customer. In these unprecedented times we continued to communicate to our consumers the importance of the quality of sleep. Through marketing campaigns with very high quality products like M line and Tempur, we delivered our customer promise. 
Concluding H1, the company proved to be resilient by formulating adequate responses to the COVID-19 crisis, working together with dedicated employees, supported by committed suppliers and rewarded by many loyal and new customers. Although the market circumstances are expected to remain challenging, we are confident about our performance. Beter Bed Holding is financially stable, shows resilience to deliver under difficult circumstances and has a great believe - Quality sleep for everyone, all the time. 
By focusing on the longer term and investing in value creation for our customers and stakeholders, we believe we can turn this crisis into an opportunity, where Beter Bed Holding N.V. is well-positioned in the new era we live in."

 Please click for the complete version of the press release on the link below. Press photos can be downloaded here.

Attachment

• press release 17-07-2020