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São Paulo, November 13th, 2019 – Springs Global Participações S.A. (Springs Global), a leading company in bedding, tabletop and bath products, reported in the third quarter of 2019 (3Q19), net revenue of R$ 380.4 million, with gross margin of 33.2%. E-commerce revenue presented growth of 54.8% year-over-year (yoy).
The highlights of Springs Global´s performance in 3Q19 were:
- Net revenue of R$ 380.4 million, in line with 3Q18;
- Gross profit of R$ 126.3 million, 7.1% greater than 3Q18;
- Gross margin of 33.2%, with an increase of 2.2 pp year-over-year (yoy) and 4.4 pp quarter-over-quarter (qoq), positively impacted by the reduction of raw materials prices and the consolidation of two industrial plants;
- Income from operations totaled R$ 28.6 million, 28.5% higher yoy, in recurring terms, excluding the R$ 14.7 million tax recovery registered in 3Q18;
- EBITDA of R$ 56.3 million, with EBITDA margin of 14.8%, and with a growth of 37.8% yoy, in recurring terms, and 45.8% qoq;
- Beginning of the compensation of tax credits – PIS/COFINS;
- Balance of exchange rate variations of R$ 43.4 million, with negative effect on net results, however with no cash effect, of which 80% is related to transactions among subsidiaries;
- Free cash flow of R$ 8.2 million;
- Expansion of 2.8 pp in gross margin yoy in the Brazil – Wholesale business unit;
- Growth of 9.0% yoy in sell out revenue(b), even with the addition of only one unit in our store network, and 54.8% yoy in e-commerce sales in the Brazil – Retail business unit;
- Growth of 18% yoy in revenue in the Argentina business unit, with an improvement of 5.1 pp in EBITDA margin; and
- Our brands – Santista, MMartan e Artex – won the ÉPOCA Reclame AQUI Award for another year.
To access the PDF file, click here.
Springs Global will host a conference call and webcast on November 14, 2019, at 11 am São Paulo time, 09 am New York time and 2 pm London time, in Portuguese with simultaneous translation to English.
Earnings conference call – 3Q19
Date: 11/14/2019
Time: 11 am São Paulo time / 9 am New York time / 2 pm London time
In Portuguese: +55 11 3193-1080/ +55 11 2820-4080
In English: +1 800 492-3904 (Toll free) / +1 646 828-8246
Passcode: Springs Global
To access the webcast (live and replay) in English click here or access the website http://www.springs.com.br/ri