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São Paulo, August 13 th , 2020 – Springs Global Participações S.A. (Springs Global), a leading company in bedding, tabletop and bath products, reported in the second quarter of 2020 (2Q20), net revenue of R$ 263.3 million, with gross margin of 37.0%. E-commerce revenue grew 8.7 times year- over-year (yoy)..
The highlights of Springs Global´s performance in 2Q20 were:
- Net revenue of R$ 263.3 million, with a decline of 19.8% yoy, due to the closure of the stores during most of the period, given the Covid-19 pandemic;
- Gross profit of R$ 97.4 million, with gross margin of 37.0%, both with an expansion yoy;
- Sales, general and administrative expenses (SG&A) increased 9.8 yoy, with higher expenses on digital media and freight related to sales through the digital channels;
- EBITDA of R$ 8.5 million, with EBITDA margin of 3.2%;
- Strong brands and products with quality – tradition, together with proprietary and innovative technology, enabled strong and quick migration of sales to the digital channels;
- Growth of 21.5% yoy in sell-out revenue, which totaled R$ 150.5 million, and 770.2% in e-commerce sales;
- Wholesale business unit presented reduction of R$ 102.9 million, or 38.1%, in revenue yoy;
- Equity in the affiliate Keeco, with no cash effect, negative of R$ 5.9 million, with an improvement of R$ 2.3 million quarter-over-quarter (qoq);
- Gross debt with a 10.4% reduction yoy, enabling financial expenses – interests to reach a lower quarterly value; and
- Free cash flow of R$ 93.4 million, with a decrease in working capital of R$ 125.3 million yoy.
To access the PDF file, click here.
Springs Global will host a conference call and webcast on August 14, 2020, at 11 am São Paulo time, 10 am New York time and 3 pm London time, in Portuguese with simultaneous translation to English.
Earnings conference call – 2Q20
Date: 08/14/2020
Time: 11 am São Paulo time / 10 am New York time / 3 pm London time
In Portuguese: +55 11 3181-8565/ +55 11 4210-1803
In English: +1 844 204-8942 (Toll free) / +1 412 717-9627
Passcode: Springs Global
To access the webcast (live and replay) in English click here or access the website http://www.springs.com.br/ri