ETAM DÉVELOPPEMENT 
By Regulatory News:
Etam Développement (Paris:TAM)
| €m | 30.06.10 | 30.06.09 | Variation | |||
| Net sales | 545.5 | 499.6 | +9.2% | |||
| Like-for-like and at constant exchange rates | +1.7% | |||||
| Gross profit | 320.9 | 287.9 | +11.5% | |||
| Gross margin | 58.8% | 57,6% | +1.2 pts | |||
| EBITDA* | 47.0 | 29.0 | +62.1% | |||
| Operating income | 19.5 | 7.1 | +175.8% | |||
| EBIT | 18.1 | 6.6 | +175.7% | |||
| As % of sales | 3.3% | 1.3% | +2.0 pts | |||
| Net income, Group share | 7.2 | 2.2 | +235.6% | |||
| Net debt | 179.9 | 113.1 | +66.8 | |||
| Gearing | 63.0% | 31.1% | +31.9 pts |
* Earnings before interest, taxes, depreciation and amortisation
SALES & GROSS MARGIN
In the first half of 2010, the Etam Group posted net sales of €545.5 million, including a negative currency impact of €-1.8 million related mainly to the depreciation of the yuan against the euro. Net sales rose by 9.2% compared with the first half of 2009. Like-for-like and at constant exchange rates, net sales grew by 1.7%.
The Group's gross margin rose to 58.8% of sales in the first half of 2010, up 1.2 points compared with 57.6% in the first half of 2009, mainly due to a reduction of markdowns in Europe.
RESULTS
In the first half of 2010, the Group posted an operating income of €19.5 million, up €12.4 million compared to the first half of 2009.
The Group's EBIT totalled €18.1 million or 3.3% as a percentage of sales, an increase of €11.5 million compared with €6.6 million and 1.3% as a percentage of sales to 30 June 2009. In the first half of 2010, this EBIT included a €-1.4 million charge with respect to the Group plan to reduce costs and improve productivity initiated in 2009, compared with a charge of €-0.5 million for the first half of 2009.
In Europe, EBIT rose by €1.5 million to €3.5 million or 1.0% as a percentage of sales, compared with €2.0 million and 0.6% as a percentage of sales for the first half of 2009. In China, EBIT increased by €10.0 million to €14.6 million or 7.9% as a percentage of sales, compared with €4.6 million and 3.6% as a percentage of sales to 30 June 2009.
Consolidated net income came to €10.2 million compared with €4.3 million in the first half of 2009. Including minority interests of €3.0 million compared with €2.2 million in 2009, net income, Group share, was €7.2 million compared with €2.2 million to 30 June 2009.
FINANCIAL STRUCTURE
At 30 June 2010, the Group's net debt stood at €179.9 million versus €113.1 million at 30 June 2009. Thanks to significant free cash flow generation after capital expenditure in the 12 months period ended 30 June 2010, this €66.8 million increase was limited despite the share purchase tender offer made in June 2010 representing a cost of €99.2 million. Gearing remained satisfactory at 63.0% at 30 June 2010 after taking the share purchase tender offer into account, compared with 31.1% at 30 June 2009.
POST-CLOSING EVENTS
Etam Développement cancelled 2,835,916 shares representing 26.34% of share capital purchased through the share purchase tender offer. The Group's share capital now stands at €12,169,313, divided into 7,982,547 shares subscribed and paid in full.
OUTLOOK
In July 2010, the Group benefited from the favourable impact in France of the end-of-season sales, which started on 24 June 2009.
International retailer of women's ready-to-wear clothing, lingerie and accessories
3,940 sales outlets at 30 June 2010
Next event:
2010 third-quarter sales on 14 October 2010 after Paris stock exchange closing time
Etam Développement - ISIN code: FR0000035743 / Reuters: TAM.PA / Bloomberg: TAM FP
Etam Développement €12,169,313 – R.C. S. PARIS 308 382 035
Registered office: 67/73, rue de Rivoli, 75001 Paris – France
Etam Développement
Information
for analysts and investors
www.etamdeveloppement.fr
Tel:
01 55 90 72 79
