Skip to main content

Matas suspends financial guidance for 2019/20

Written by Customer Service on . Posted in Public Companies.

Company announcement no. 14 2019/20 – INSIDE INFORMATION
Allerød, 18 March 2020Matas suspends financial guidance for 2019/20In light of the current developments concerning the spread of COVID-19 and the Danish government’s decision to shut down parts of the retail sector, Matas has suspended its financial guidance for 2019/20.Since Wednesday, 11 March 2020, a number of measures aimed at curbing the spread of COVID-19 have been implemented in Denmark. These measures have reduced footfall in the retail sector at large, and in turn also to Matas’ physical stores, whereas the already strong online sales growth has gained additional momentum.In light of the Danish prime minister’s announcement on 17 March 2020 of the government’s decision to ban large crowds and shut down large parts of the retail sector, except for supermarkets, pharmacies and specialist retailers offering medical equipment, the decline in footfall is expected to accelerate through March. Matas’ retail network will generally continue to operate, albeit subject to adjustments during the remaining part of March. The uncertainty surrounding the potential revenue impact of COVID-19 during the last weeks of the financial year is so great that the Group’s financial guidance for financial year 2019/20 must be suspended.Matas operates with two revenue and earnings scenarios (best-case and worst-case) for the remainder of March 2020. In the best-case scenario, most stores will remain open. In the worst-case scenario, a curfew or a temporary shutdown of all stores is imposed.In the best-case scenario, the Group expects underlying revenue growth for financial year 2019/20 of about 0.5% and an EBITDA margin before exceptional items and before IFRS 16 of above 13.5%.In the worst-case scenario, the Group expects underlying revenue growth for financial year 2019/20 of about minus 1% and an EBITDA margin before exceptional items and before IFRS 16 of above 13%.CAPEX is still expected at a level between DKK 150 million and DKK 170 million.Matas’ liquidity position is currently stable, and the Company is at a reasonably safe distance from the covenants pertaining to its loan agreements. Matas is monitoring its liquidity position closely in order to ensure that the Group is able, in a timely manner, to take all necessary steps to maintain a healthy liquidity position in the current uncertain situation. Matas intends, to the extent that it is relevant, to make use of the Danish government’s COVID-19 rescue packages in relation to liquidity, wage compensation and reimbursement of costs.The Annual Report for 2019 will be released on 27 May 2020.Contacts
Gregers Wedell-Wedellsborg
CEO, tel +45 48 16 55 55Elisabeth Toftmann Klintholm
Head of Investor Relations & Corp. Affairs, tel +45 48 16 55 48Forward-looking statements

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Important Notice for Investors:

The services and products offered by Goldalea Capital Ltd. are intended exclusively for professional market participants as defined by applicable laws and regulations. This typically includes institutional investors, qualified investors, and high-net-worth individuals who have sufficient knowledge, experience, resources, and independence to assess the risks of trading on their own.

No Investment Advice:

The information, analyses, and market data provided are for general information purposes only and do not constitute individual investment advice. They should not be construed as a basis for investment decisions and do not take into account the specific investment objectives, financial situation, or individual needs of any recipient.

High Risks:

Trading in financial instruments is associated with significant risks and may result in the complete loss of the invested capital. Goldalea Capital Ltd. accepts no liability for losses incurred as a result of the use of the information provided or the execution of transactions.

Sole Responsibility:

The decision to invest or not to invest is solely the responsibility of the investor. Investors should obtain comprehensive information about the risks involved before making any investment decision and, if necessary, seek independent advice.

No Guarantees:

Goldalea Capital Ltd. makes no warranties or representations as to the accuracy, completeness, or timeliness of the information provided. Markets are subject to constant change, and past performance is not a reliable indicator of future results.

Regional Restrictions:

The services offered by Goldalea Capital Ltd. may not be available to all persons or in all countries. It is the responsibility of the investor to ensure that they are authorized to use the services offered.

Please note: This disclaimer is for general information purposes only and does not replace individual legal or tax advice.