SLEEPZAG (SLZ): Nine-month figures impacted by delays in growth projects - raport 41

Raport bieżący nr 41/2017

Podstawa Prawna:


SLEEPZ AG (ISIN DE000A2E3772 – “SLEEPZ”), a group of companies focusing on online commerce in the sleep products segment, has made progress with implementation of its growth projects but nonetheless recorded a significant decline in sales in the first nine months of the 2017 financial year. EBITDA was also down on the same period of the previous year. By contrast, the net result for the period improved.

All in all, in the first nine months of 2017 the SLEEPZ Group generated sales of € 8.8 million, thus falling short of the previous year’s level by 19%. After the tight liquidity position and the associated cost reductions put pressure on sales in the first half of the year, the fact that SLEEPZ’s marketing activities then increased again also did not help counter the stagnating sales throughout the sector to the desired extent in the third quarter. Following publications about defective raw material deliveries to mattress manufacturers, which caused considerable unrest on the market, the Executive Board reported on this in mid-October and adjusted the annual forecast for 2017 as a whole.

The gross profit of € 2.7 million (previous year: € 3.6 million) and the EBITDA of minus € 1.8 million (previous year: minus € 1.3 million) were also down year-on-year due to a slightly worse cost of materials ratio of 68.3% (previous year: 67.0%).

By contrast, the net loss for the period improved considerably to minus € 2.9 million following the discontinuation of the VC minority portfolio, as compared to the previous year’s figure of minus € 3.9 million. This figure will also be positively impacted in the fourth quarter by the fact that the service agreement in place until the end of 2017 for the management and sale of the VC-portfolio was terminated early – resulting in total costs savings of € 150 thousand for 2017.

The company is still holding acquisition negotiations with Cubitabo GmbH (www.bettenriese.de). In this context, a model is being discussed whereby the Berlin-based company would be acquired by sleepz Home GmbH for integration reasons and sleepz Home would then be fully incorporated into SLEEPZ AG as far as possible. It is not clear at present whether this can be achieved.

At the same time, the Executive Board sees particular sales potential in the company’s own mattress series “Grafenfels” and “Matratzenheld”. Oliver Borrmann, Executive Board member of SLEEPZ, comments: “We have kick-started our ‘Grafenfels’ and ‘Matratzenheld’ growth projects but have not yet advanced them far enough for this to be reflected in our figures for 2017. Our goal now is to sell a number of units in the tens of thousands for each of these mattress series in 2018.”

The complete quarterly statement will be published on 30 November 2017 at. www.sleepz.com.