(Alliance News) – OVS Spa said on Wednesday that net sales for the first nine months of its 2023-2024 financial year increased to 1.10 billion euros, compared to 1.09 billion euros year-on-year.
The performance of direct stores was better than that of franchised stores, which were more affected by adverse weather conditions as they are mainly children’s formats.
Ebitda for the period ending October 31 saw a slight year-on-year decline from €124.1 million to €121.5 million.
Operating profit fell from 79.1 million euros to 73.3 million euros, while profit before tax fell from 68.8 million euros to 60.0 million euros, under the effect of an increase in depreciation of approximately 3 million euros and the increase in interest rates, mitigated by the prevalence of the fixed rate bond indexed to sustainable development.
As of October 31, the company’s net financial position, adjusted to take into account the impact of mark-to-market hedging instruments and the impact of the application of IFRS 16, was amounted to 275.4 million euros, compared to 222.9 million euros as of October 31, 2022. Working capital developed unfavorably due to the absence of sales during periods affected by weather conditions; however, the corresponding inventory will be fully carried over to the following financial year, which will have positive effects on the 2024 cash flow.
The positive sales trend that began in mid-October with the normalization of weather conditions continues; the company forecasts increased results for the fourth quarter, with Ebitda for the whole year slightly improving compared to 2022. Already in November, the Ebitda for the ten months was in line with that of 2022.
OVS shares closed down 1.2% on Wednesday at 2.03 euros per share.
Par Giuseppe Fabio Ciccomascolo, senior journalist of Alliance News
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2023-12-13 23:12:57
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