Business Model of Takko Fashion Optimized for Future Growth / Increase in Net Revenue and Adjusted EBITDA

TELGTE, Germany, December 19, 2017 /PRNewswire/ --

Takko Fashion ("The Group"), a leading European apparel retail group operating over 1,850 stores across 16 countries in Western, Central and Eastern Europe, today announces its results for Q3 17/18 (August - October 2017).

Net revenue in Q3 17/18 grew by 4.9% year-on-year, to 300.3 million euros, including an increase in Like-for-like (LfL) sales of 4.8%. Adjusted EBITDA increased by 0.7% year-on-year to 42.0 million euros, against 41.7 million euros in Q3 16/17.  Adjusted EBITDA margin was 14.0%, against 14.6% for the same period last year.

Net cash flow from operating activities increased from 44.1 million euros in Q3 16/17 to 51.1 million euros in Q3 17/18. Net cash used in investing activities increased from (2.8) million to (4.7) million euros. With 1,862 stores at the end of October 2017, the total number of stores increased by a net number of 14 stores compared to the end of July 2017.

"Overall, we are very satisfied with the Company's performance over the course of this year, and we were able to develop the business very well in the third quarter. We expect this positive trend to continue," says CEO Arnold Mattschull.

In November, the Company successfully completed the refinancing of its debt, ahead of the maturity date of the previous bonds. New notes amounting to 510 million euros have been issued in two tranches and used to repay the previous notes, securing financing for the next six years until 2023. "Given the improved terms on the new notes, we will be saving more than 20 million euros per year in interest payments", says CEO Arnold Mattschull.

With the refinancing in November this year, Takko has successfully accessed the capital markets and secured attractive financing terms supporting its growth trajectory going forward. Takko will continue to explore all strategic financing options available to best shape its future, including potentially accessing public equity markets.

Takko Fashion is pursuing further growth. The smart discounter intends to expand its footprint, with more than one hundred new openings planned for the coming business year. Around one-third of these new openings shall be so-called "Takko Express" stores, a new small-space concept that the Company has been testing in some locations since spring and which it will now further roll out.

Disclaimer 

The press release contains information on known and unknown risks, uncertainties, and other factors largely outside of the control of Takko Fashion S.à.r.l., Takko Luxembourg 2 S.C.A., and their affiliated companies (the "Group"), and which are difficult to predict and may lead to the actual development differing significantly from the development explicitly or implicitly presented within this press release.

Any liability by the Group with regard to the information contained within this press release is expressly ruled out (including for direct or indirect damages or subsequent damages). This press release (or parts thereof) or the fact of its publication constitute neither the foundation nor a statement of trust for finalisation of a contract, the acceptance of obligations, or an investment decision.

No company within the Group is obligated to update or assess this press release, including the forward-looking statements or all other information contained herein, unless for reasons stemming from new knowledge, future events, or other reasons. This press release may neither be published, released, nor distributed in jurisdictions in which such would constitute a violation of law, nor may it be brought into or transported into such jurisdictions.

Investor Relations:
Michael Huck, CFA
Manager Corporate Finance
T: +49-2504-923-438
investor.relations@takko.de

Public Relations:
Katharina Petermann
Manager Public Relations
T: +49-2504-923-564
presse@takko.de