ADVEO's results still hampered by stock availability
| 15 May, 2018
In the first quarter of the year, ADVEO obtained a negative net result of €2.9m, due essentially to the lack of stock availability. The company says it is making progress in obtaining additional funding which will allow recover the target stock levels. ADVEO estimates to successfully close this process before summer.
Despite this situation, ADVEO stated that by prioritizing strategic categories and the continuous reduction of structural costs (€5.6m after the actions undertaken in Germany, France and Spain) it has maintained an EBITDA level in accordance with the budget. EBITDA in Q1 reached €2.8m, 51.3% less than last year, due to lower sales, but with a better management of margins
Revenue in the first quarter fell by 17.8% due to the lack of stock availability which penalized primarily the German and Spanish subsidiaries.
Nevertheless, ADVEO reports that it made good progress in implementing strategic initiatives following the closure of the Winkelhaid site; the sale of two warehouses in France for €13 m; the launch of new Own Brands and the implementation of new technological solutions and new commercial plans.