Ellos may be the only remaining star of the FNG firmament, but it sure shines. The Scandinavian e-commerce platform saw its profits double during the last quarter.
Third more turnover
FNG subsidiary Ellos, the only retail formula that the former owner of Brantano and CKS still owns, is continuing to perform strongly. In the past first quarter, the e-commerce player recorded 830 million Swedish kronor (82 million euros) sales. Compared to the same period last year when the outbreak of the Covid-pandemic also boosted online purchases, it is an increase of 30 per cent.
The profit figures are even more remarkable: adjusted EBITDA doubled to 54.8 million Swedish kronor (5.4 million euros), reports Belgian newspaper De Tijd. So the growth did not come at a high cost, quite the contrary.
For FNG, the good results are of great importance as the group’s future is hanging by a thread, and that thread is Ellos. A settlement has been reached with former owner Nordic Capital since that investor group is still entitled to parts of the acquisition price of FNG. According to the agreement, FNG still owes Nordic Capital 100 million euros, but payment is not due until a safe – and debt-free – structure has been found for Ellos. Currently, the search for a solution is going towards a (partial) IPO or sale.
The question is whether the shareholders and creditors will let it get that far. After all, the group itself is now also suspected of fraud and about fifty disgruntled bondholders recently initiated legal proceedings against the Belgian retail group.
