OVS post strong growth in full year sales and profit

OVS SpA closed the year to January 31, 2023 with net sales of 1,513 million euros, up 11.3 percent, due to the strong performance in the like-for-like perimeter.

The company said in a release that the trend was seen across all the group's brands and distribution channels and was consistent in all periods, with a more pronounced trend in May, partly due to favourable weather conditions, and in the months of Christmas shopping and winter sales.

For OVS, growth was almost exclusively driven by the like-for-like performance, while for Upim, growth came not just from like-for-like perimeter, but also from the expansion of the sales network with the opening of direct outlets and franchises.

There was a 22.4 percent increase in adjusted EBITDA to 180.2 million euros compared to 2021, amounting to 11.9 percent of sales. Revenue performance and the increase in the gross margin was 57.1 percent, up 40 basis points more than offset the strong pressures on the cost of products and the entire supply chain.

Fourth quarter adjusted EBITDA was 56.1 million euros, up 13.4 million euros or 31.5 percent compared with the same period last year. Adjusted consolidated net profit rose to 78.4 million euros, up 75.2 percent compared with 2021.

The company added that a dividend of 0.06 euros per share will be proposed to the shareholders' meeting, an increase of 50 percent compared with previous year.

OVS expects strong growth in the coming years as a result of major new product projects, further expansion and improvement of the store network in Italy and abroad, growth in e-commerce and the launch of numerous projects in the digital field, the streamlining of operations and the ongoing development of its human capital.

The company further said that current trading has been very positive since February, with like-for-like for all brands up more than 10 percent compared to 2022, not least due to the positive response to its new collections.