Etam 2007 S/S season gets off to good start in terms of gross profit
26 Apr '07
3 min read
Capital expenditure and debt: The improvement in the Group's performance resulted in higher cash flow. With an increase in capital expenditure to €54.9 million compared with €27.9 million in 2005, this enabled the Group to reduce its debt significantly, bringing net debt to shareholders' equity to 31.8%, down from 38.6% in 2005.
Dividend: According to this more favourable backdrop, at the next general shareholders' meeting, scheduled for 26 June, the Group will propose the payment of a dividend of €0.5 per share for the year ended 31 December 2006.
First quarter 2007 net sales: First quarter net sales totalled €276.4 million, up 11.5% or 8.3% like-for-like (at constant exchange rates). This includes a negative currency impact of €3.4 million due to the fall in the Chinese yuan.
For the Group's operations in Europe, this performance reflects both solid winter end-of-season sales and the brisk start to the spring-summer season, as well as a positive calendar effect. The 2007 spring-summer season got off to a good start in terms of gross profit.
Executive Management of the Etam Group's in China has been assigned to Bruno Collache, the Group's former finance director in Belgium, who had held finance positions locally since September 2006.
This appointment follows Paul Liu's decision to stand down from Etam's Executive Management in China. However, he will remain non-executive chairman.
Outlook: In Europe and abroad, the Group intends increase its growth and continue to improve its margins. In China, the Group aims to consolidate its position in this strong growth market.
In order to reinforce its leading position in the lingerie market and with the increased segmentation of its offering, the Group is looking into launching a new underwear brand with a very different image and positioning from the Etam brand. The new concept will go on trial from autumn 2007, initially in France.
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