Financial results from continuing operations
Revenue (in € million)
EBIT (in € million)
Net profit / (loss) from continuing operations (in € million)
Number of stores at year-end
Number of staff (FTE) at year-end
Group revenue from continuing operations in 2019 was € 185.8 million, which is 7.5% higher compared to € 172.8 million in 2018, with like-for-like revenue growth of 4.7%. Both the Benelux and the New Business operations contributed to this revenue growth. The Benelux reported significant year-on-year revenue growth of 5.5%, with like-for-like revenue growth of 4.3%. New Business, comprising the DBC wholesale business and Sängjätten in Sweden, delivered year-on-year revenue growth of 25.3% with like-for-like revenue growth of 8.1%. The online activities within the Group have grown significantly at a growth rate of 27.4%. From a regional perspective 85% of 2019 revenue was generated in the Netherlands (2018: 87%), 6% in Belgium (2018: 5%) and 9% in Sweden (2018: 8%).
The gross profit as percentage of revenue decreased to 53.0% compared to 54.4% last year. The anticipated cost of goods improvements with key suppliers were not realised as a consequence of our liquidity constraints. As a result of higher revenue at a lower gross margin, the gross profit for the year increased by 4.8% to € 98.5 million, compared to € 94.0 million in 2018.
In 2019 the Company closed sale-and-leaseback agreements for the three distribution centers in Uden, Nieuw-Vennep and Hoogeveen for a cash consideration of € 19.1 million. From these transactions, Beter Bed Holding N.V. recorded a one-time gain of € 6.4 million in 2019.
Total operating expenses for 2019 were € 105.4 million, compared to € 89.5 million in 2018. The higher operating expenses are mainly driven by higher personnel expenses, logistics costs and one-off advisory and legal costs related to the transition of the Group.
Total personnel expenses amounted to € 47.1 million, compared to € 40.8 million last year, mainly explained by investments in critical resources and capabilities to support the transformation and future growth, leading to a higher number of (temporary) staff in the Benelux, wage inflation and one-off severance costs related to the restructurings.
Depreciation, amortisation and impairment expenses were € 21.7 million in 2019 compared to € 7.2 million from continuing operations in 2018. This increase is mainly due to the adoption of IFRS 16 whereby rental and lease expenses have been replaced by depreciation of right-of-use assets and interests relating to lease liabilities as of 2019.
Other operating expenses decreased by € 4.9 million to € 36.6 million in 2019 (2018: € 41.5 million). Cost inefficiencies in logistics led to an increase in costs, while structural improvements have been lagging behind. In addition, the other operating expenses reflect one-off advisory and legal costs related to the transition of the Group of approximately € 4.7 million. These increases have been off-set by the decrease in rental and lease expenses as a result of the adoption of IFRS 16. In addition, reflecting one-off advisory and legal costs related to the transition of the Group of approximately € 4.7 million.
EBITDA increased from € 11.8 million in 2018 to € 21.2 million in 2019, reflecting a 7.5% increase in revenues, higher operating expenses, the positive impact from IFRS 16 and one-off costs and impairments. 2019 EBIT decreased year-on-year to € 0.4 million negative (2018: € 4.6 million). The net loss from the continuing operations amounted to € 4.2 million (2018: net profit of € 6.9 million).
On 2 December 2019 we completed the sale of Matratzen Concord in Germany, Austria and Switzerland to Magical Honour Limited. Matratzen Concord is presented as discontinued operations in the financial statements for the period up to 30 November 2019. The 2019 net result after tax of discontinued operations including the loss from the sale was a loss of € 48.4 million. More details can be found in the paragraph Discontinued operations of the Notes to the consolidated financial statements. The total net result for the year was a loss of € 52.6 million (2018: loss of € 23.3 million).
Financial instruments held by Beter Bed Holding N.V. are limited to primary financial instruments. Beter Bed Holding N.V. has a policy not to actively secure or hedge financial risks, for example interest rate and currency risks, and consequently does not have derivative financial instruments.
The primary financial instruments mainly relate to cash and cash equivalents including positions from credit institutions and trade receivables/payables. Per year-end, Beter Bed Holding N.V. is exposed to currency risks regarding the Swedish krona and the US dollar. Interest risks regarding the credit facilities are also considered low both on balance sheet date and forward looking. A more in-depth analysis on the risk exposure of Beter Bed Holding N.V. is stated in the paragraph Risk Management.