15-5-2008
Full Year Results: Maxeda made A Difference in 2007
Amsterdam, 15 May 2008
Highlights 2007/08*:
• Net Sales (including concessionaires) increased by 5.2% to EUR 3,181 million
(1)
• Same store sales up by 3.3% (1)
• Operating EBITDA increased by 16.3% to EUR 228 million (1)
• Gross Asset Investment of EUR 126 million
• Working Capital Improvement of EUR 84 million
• Number of Stores increased by 8.1% to 1,346
• Increased market share in nearly all formats and product categories (2)
• Colleague Satisfaction improved to 7.6 (Dutch average 7.0)
The performance of Maxeda’s formats continued to be strong in a more challenging
marketplace. On the basis of Maxeda’s ‘A passion to Serve’ philosophy, it successfully
executed its ‘5 S’ strategy of Selling more, Sourcing better, Saving Costs & Cash, Exploiting
group Synergies and Smile! As a result, colleagues satisfaction increased and customer
satisfaction, measured by higher market share, improved in nearly all of its formats and in
most product categories.
Maxeda accelerated its same store sales growth and opened 134 new stores throughout Europe and in new markets. Over 50% of the stores are now outside the Netherlands.
Maxeda also improved sourcing, enhanced its supply chain and managed markdowns,
creating higher margins whilst tightly managing costs and cash. 2007 also saw the
successful graduation of HEMA from the ‘Maxeda Academy’ and the outsourcing of Maxeda
IT Services to Capgemini. After the sell of HEMA, Maxeda was successfully restructured and
refinanced into Maxeda DIY and Maxeda Fashion. Maxeda’s aim is to achieve retail
leadership in every format in every market in which they operate. It has set clear strategic
priorities with an absolute focus on satisfying customers and colleagues.
Tony DeNunzio, Executive Chairman Maxeda: “Maxeda delivered another good set of results
in 2007. We satisfied more customers, we increased our colleague satisfaction and our
formats won many prizes. In short: Maxeda made a difference to all its stakeholders. But
whilst we are pleased with the results, we still see significant potential within the group. All
our formats will therefore continue to execute our ‘5 S’ strategy with a passion to serve our
customers and our people. However, it is likely that greater economic uncertainty will
continue across Europe impacting our customers’ ability and willingness to spend. Our
challenge in 2008 will therefore be to control those factors that are controllable and
demonstrate the resilience of our business through the continued successful execution of
our plans. We have strong brands, strong plans and strong teams. With these ingredients,
we are convinced that we can maximise our opportunities in the coming year.”
Ronald van der Mark, CFO Maxeda: “In 2007, Maxeda showed further progress in many
areas in a more challenging market environment. Maxeda as a whole and most of its
formats increased their market share in highly competitive markets. Macro economic
developments, such as the credit crisis in the US, led to a sharp decrease in consumer
confidence. This impacted our retail markets to some extent. Also the volatile weather
patterns in 2007 had an influence on our performance. However, our continued focus on the
execution of our strategy proved to be successful and will continue to provide the basis for
further growth at Maxeda.”
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