- Prachi Singh |
The international retail and services group Otto said that it continues its growth track, increasing revenues in the past 2017/18 financial year to February 28 to 13.653 billion euros (16.079 billion dollars), an increase of 6.7 percent. The company also increased its EBIT by 11 percent to 405 million euros (477 million dollars). The group’s digitised retail climbed 10.9 percent in online revenues to 7.9 billion euros (9.3 billion dollars).
“On our chosen path driven by the focused growth strategy, with a revenue target of 17 billion euros by 2022 on a comparable basis, in the past financial year we made better progress than we expected,” said Alexander Birken, Chairman of the Otto Group Executive Board in a statement.
Otto Group exceeds revenue and earnings target
The company said in a statement that the Otto Group exceeded its forecast revenues and earnings growth. Substantial investments in focus companies with particularly high growth potential paid off, contributing to powerful growth in revenues of 9.1 percent to 13.653 billion euros. Due to the Group-wide harmonisation of previously divergent financial years, which lead to a financial year one or two months longer at some individual group companies, the group’s overall growth was still 6.7 percent and thus 2 percentage points above plan.
The company added that EBITDA result climbed by another 20 million euros (23.5 million dollars) to reach 750 million euros (882.4 million dollars). The EBIT also improved correspondingly, from 365 to 405 million euros. The EBT (earnings before taxes) also climbed from 262 (308) to 629 million euros (740.2 million dollars). After taxes, the Otto Group’s net earnings for the financial year rose from 41 (48.2) to 519 million euros (610.7 million dollars).
Otto Group all three segments witness growth
The multichannel retail segment achieved an increase in revenues of around 5.3 percent – factoring in financial-year harmonisation effects this was 7.4 percent to 10.5 billion euros (12.3 billion dollars). In particular, the company said, digitised retail made a major contribution to this strong development; with growth of 10.9 percent – factoring in financial-year harmonisation effects, it was 12.3 percent to 7.9 billion euros (9.3 billion dollars).
Otto Group added that 75 percent of all the group’s retail revenues are generated online with over-the-counter/OTC retail: around 12 percent and catalogue business: around 13 percent. In Germany the group’s online retail revenues grew by 10.2 percent to exceed 5.4 billion euros (6.3 billion dollars).
Among the group companies, Otto grew for the eighth year in a row, raising revenues by around 8.5 percent to almost 3 billion euros (3.5 billion dollars). About You was also able to develop its fashion platform further with great success and more than double its revenues to 283 million euros (333 million dollars) or 110 percent.
The company said, with 2.5 million active customers the company has created a sound basis for its ambitious growth plans; besides Germany, Austria and Switzerland it has also launched its highly individualised business concept in the Netherlands and Belgium, with an expansion to further countries planned.
The Witt Group, as a leading provider to the 50+ target group, raised revenues by 8 percent to 818 million euros (963 million dollars), with very high profitability. With its successful market entry in the USA, in the past financial year Witt expanded beyond Europe for the first time.
The international fashion provider Bonprix, taking the effects of the financial year harmonisation into account, posted revenue rise of 3.2 percent to reach 1.561 billion euros (1.840 billion dollars). By making targeted investments, in the current financial year Bonprix intends to address new female customers and continue its profitable growth path.
The North American lifestyle retailer Crate and Barrel raised revenues by 5.5 percent to 1.564 billion euros, adjusted for exchange-rate effects and the harmonisation of the financial year. The Hermes Group also generated growth of 13.2 percent on a comparable basis. The growth has reached over 30 percent to a total of more than 2.1 billion euros (2.4 billion dollars) in external revenues.
Otto Group to chase revenue target of 17 bn euros by 2022/23
For the financial year now under way and with a view to the revenue target of 17 billion euros (20 billion dollars) on a comparable basis by the 2022/23 financial year, the Otto Group said that it will continue to rely on the digital transformation of the entire group of companies, and will continue to drive its focused growth strategy forward.
“In the past year we laid a good foundation for further investments as well as long-term profitable growth, and will continue to pursue our strategy with discipline. In the current 2018/19 financial year we expect ongoing revenue growth of around 5 percent on a comparable basis and an operating result that should match the previous year’s good figure”, added Birken.
Picture:Otto Group media centre