- Prachi Singh |
Total sales at OVS increased by 43.1 million euros (46 million dollars), or 3.3 percent, with a positive contribution from network expansion, while the company said, like-for-like sales mainly suffered due to adverse weather conditions and decreased by 3.2 percent. EBITDA reached 186.7 million euros (200 million dollars), (13.7 percent as a percentage of net sales, representing an increase of 7.1 million euros (7.6 million dollars) or 3.9 percent.
“OVS, with the aim to strengthening its market leadership, will continue to explore opportunities to further consolidate the fragmented Italian apparel market. In view of this, management is looking ahead to the new year with confidence and conviction for its strategy and believes that its proven ability to execute and react in a constantly changing and increasingly competitive market, will result in sustainable and remunerative growth for our shareholders in 2017,”said Stefano Beraldo, Chief Executive of OVS in a statement.
OVS sales increased 3 percent in FY16
OVS registered an increase in sales of 3 percent, up 34 million euros (36 million dollars), driven by steady development of the direct sales network and accelerated openings of franchised stores. Upim's trend of growth, the company said, was further strengthened, with an increase in sales of 4.5 percent or 9.1 million euros (9.7 million dollars), boosted by positive feedback from the public on the brand's repositioning in terms of format and offering and the expansion of the network of franchised Blukids children's clothing stores.
The company said, both brands contributed to this performance, due to an improvement in the gross margin and careful control of costs and specific savings initiatives. The EBITDA of the OVS brand increased by 2.2 million euros (2.3 million dollars), up 1.4 percent year-on-year, while the EBITDA of the Upim brand grew by 4.9 million euros (5.2 million dollars), up 27.8 percent.
Operating profit amounted to 136.3 million euros (146 million dollars), up 6.3 million euros (6.7 million dollars) or 4.9 percent year-on-year. Profit before tax increased by 6.7 million euros (7.1 million dollars) or 5.8 percent year-on-year to 121.6 million euros (130 million dollars) buoyed by the operating result and a slight decrease in financial expenses. Net profit grew by 10.7 million euros (11 million dollars), to 91.8 million euros (98 million dollars).
The Board of Directors has resolved to propose to the shareholders' meeting the payment of dividends for 2016 of 34.05 million euros (36 million dollars), equal to 0.15 euro (0.16 dollar) per share, with a payout ratio of 37 percent of consolidated net profit.