Fielmann Group grows HY1/2024 sales +12% over 2023, improves profitability

EQS-News: Fielmann Group AG / Key word(s): Preliminary Results/Half Year
Results
Fielmann Group grows HY1/2024 sales +12% over 2023, improves profitability

11.07.2024 / 07:29 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Fielmann Group grows HY1/2024 sales +12% over 2023, improves profitability

  * Strong sales growth across all major markets despite weak consumer
    sentiment in Europe

  * Customer loyalty, sell-out structure and Cost Leadership Program drive
    HY1/2024 EBITDA margin in European markets up by 2 percentage points to
    about 23%

  * Earnings outlook 2025: European markets expected to reach Vision 2025
    EBITDA target margin of 25%, Fielmann Group margin including US
    businesses slightly below

Preliminary financials of HY1/2024

According to preliminary figures, the Fielmann Group generated consolidated
sales of around EUR1.1 billion in the first half of the year 2024. This is a
12% increase over previous year (EUR971 million) and in line with the
communicated prognosis. The loyalty of our customers, an increased share of
progressive lenses and hearings aids as well as the positive impact of our
Cost Leadership Program saw our earnings before interest, taxes,
depreciation and amortisation (EBITDA) grow disproportionately to around
EUR235 to EUR240 million (about +14% previous year: EUR208 million), corresponding
to an improved EBITDA margin of about 21.6% (previous year: 21.2%). This
development was driven by our European business where we increased our
EBITDA margin by around +2 percentage points to circa 23% (previous year:
21.2%). Fielmann Group earnings before taxes (EBT) are expected to have
reached about EUR125 million (+16%, previous year: EUR108 million).

Vision 2025 investments in digitalisation and internationalisation drive
growth in HY1/2024
In line with its Vision 2025, the Fielmann Group has digitalised its
business model and continues to expand internationally. During the first
half of the year 2024, we introduced various digital innovations such as an
online frame consulting feature utilising artificial intelligence. More than
250 stores in Germany and Switzerland now offer our innovative eye health
check up: Certified opticians take images of the retina and measure the
intraocular pressure with state-of-the-art equipment in Fielmann stores.
Subsequently, the data is digitally transferred to ophthalmologists who
conduct an assessment and provide customers with feedback within a few days.
Customers with findings receive a recommendation to consult a local
ophthalmologist for diagnostics and treatment. To-date, already more than
50,000 customers had their eyes checked at Fielmann and more than 10,000 of
them have been referred to local ophthalmologists or clinics based on the
findings. This way Fielmann plays an important role in making eye health
accessible to everyone.

Our international markets outperformed, once again, increasing their sales
by +26% in HY1/2024. While most of our European markets were affected by low
consumer sentiment, we nonetheless recorded double digit sales growth in
Austria (+10%), Spain (+10%) and Poland (+32%) compared to the same period
last year. Germany, our home market, delivered strong growth of +6%.
Switzerland improved +5% over the same period last year.

Fielmann USA added EUR58 million to the topline of our family business. By
significantly extending our eye exam capacities and by introducing our
omnichannel services we excite customers and grew by +8% on a comparable
base over last year without opening additional stores. With the closing of
our acquisition of Shopko Optical earlier this month, Fielmann USA is now
forming the leading optical retailer in the Upper Midwest. Our omnichannel
sales platform is serving patients via digital sales channels and more than
220 stores across 19 states.

Acquisition of remaining shares in Óptica & Audiología Universitaria
In April 2024, the Fielmann Group has acquired the remaining 20% ownership
in Óptica & Audiología Universitaria. "We thank the Caballero and Gómez
families for the constructive and successful four-year transition period,
and we are happy to welcome Aitor Leunda who took over as CEO of the
company", says Marc Fielmann, CEO of the Fielmann Group. "Going forward, our
focus lies on the integration of our Spanish businesses as well as further
expansion. Thanks to the trust of our Spanish customers and to our fantastic
teams from Medical Óptica Audición as well as Óptica & Audiología
Universitaria, we continue to gain market share. We are going to achieve
market leadership in Spain in the medium-term", Marc Fielmann continues.

Outlook
For the full year 2024, the Fielmann Group expects consolidated sales of
EUR2.3 billion (+15% over last year), including the consolidation of six
months of Shopko Optical's results. For our European markets, we expect to
reach an EBITDA margin of about 23% in 2024 and confirm our Vision 2025 goal
of 25% in 2025. Fielmann USA is starting at a lower profitability base but
will significantly improve its EBITDA margin in 2024 and 2025. At Group
level, including Fielmann USA, we expect an increased EBITDA margin in 2024
compared to previous year when adjusting for transaction and integration
costs. In 2025, we estimate to reach an EBITDA margin of about 24% at Group
level when including the newly acquired US businesses. Our Group EBT margin
is set to increase both in 2024 and 2025. An explanation of these effects
will be provided in today's Annual General Meeting.

Hamburg, Germany - 11 July 2024

Fielmann Group AG
The Management Board

About Fielmann Group AG
The Fielmann Group is a German family business that serves 29 million
customers with eyewear, contact lenses, hearing aids and primary eyecare
services. It operates an omnichannel platform consisting of digital sales
channels and more than 1,200 retail stores worldwide. Founded in 1972, the
company is led by Marc Fielmann, representing the second generation of the
Fielmann Family who still owns the majority of the company's stock. By
staying true to its customer-centric values, the Fielmann Group helps
everyone hear and see the beauty in the world. Thanks to the dedication of
its 24,000 people worldwide, the company is consistently reaching customer
satisfaction and retention rates of more than 90% and has to-date fitted
more than 200 million pairs of individual prescription glasses.

Further information

     Katrin Carstens                Ulrich Brockmann
     Director Communication & PR    Director Investor Relations
     press@fielmann.com             investorrelations@fielmann.com
     Phone +49 40 270 76 5907       Phone +49 40 270 76 442

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   Language:       English
   Company:        Fielmann Group AG
                   Weidestrasse 118 a
                   22083 Hamburg
                   Germany
   Phone:          +49 40 270 76-0
   Fax:            +49 40 270 76-390
   Internet:       www.fielmann-group.com
   ISIN:           DE0005772206
   WKN:            577220
   Indices:        SDAX
   Listed:         Regulated Market in Berlin, Dusseldorf, Frankfurt
                   (Prime Standard), Hamburg, Hanover, Munich, Stuttgart;
                   Regulated Unofficial Market in Tradegate Exchange
   EQS News ID:    1942519

End of News EQS News Service
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1942519 11.07.2024 CET/CEST