Tendam raises EBITDA outlook on strong Q3

Tendam Brands third quarter revenues stood at 278.2 million euros, reflecting growth of 5.7 percent versus Q3 2022 and 8.5 percent versus the same period of 2019.

Total sales rose to 884.3 million euros over the nine month period, up 5.2 percent year-over-year and 8.4 percent versus the same period of 2019. Like-for-like sales grew by 6.2 percent versus the same period of 2022.

Commenting on the trading performance, Tendam chairman and CEO Jaume Miquel said in a media release: “The Tendam 5.0 strategy has been instrumental in driving the group's sustained growth, delivering increasing margins and improving operating leverage.”

“Based on the results obtained in the previous quarters and the strong Christmas and early sales campaigns, the company has improved its outlook for full-year 2023/24 and raised its estimated recurring EBITDA growth to over 10 percent,” added Miquel.

The company’s recurring EBITDA was up 12.6 percent in the third quarter, while in the first nine months of the year, recurring EBITDA stood at 210.7 million euros, 9.4 percent higher than the same period in 2022. On a like-for-like basis, recurring EBITDA was 119.7 million euros, up 18.1 percent versus the same period in 2022.

EBIT for the first nine months was up 31.4 percent, while Tendam improved its gross margin to 64.2 percent, up 1 percentage point year on year.

Sales by Tendam's new own brands – Hoss Intropia, Slowlove, High Spirits, Ooto, Dash and Stars and Hi&Bye – and by third-party brands increased by 37.8 percent versus 2022, and the core brands performed well, with Cortefiel and Pedro del Hierro sales up 8.1 percent.

The company said that Mexico outperformed in the global market, confirming its strong position as one of the key countries in Tendam's five-year strategy, with growth of 20.5 percent at constant exchange rates.

The online business continued to grow in the first nine months as profitability improved, delivering an EBITDA margin of almost 31 percent.