Hema has become profitable again: after improved net losses in the past quarters, the Dutch chain has managed to become profitable again in the third quarter.
Hema’s third quarter turnover grew 2.3 % to 308.2 million euro and its normalized EBITDA also spiked 10.1 % to 34.4 million euro. It ended up with a 4.6 million euro profit, compared to a 1.6 million euro loss last year. It generated an additional 2.2 % like-for-like consumer turnover and also opened a lot of new stores abroad. Dutch turnover dropped 0.2 % but there was a 1.1 % turnover increase for Belgium and Luxembourg.
“We are very satisfied with our third quarter results. We made excellent progress thanks to our growth strategy, which led to a third quarter net profit for the first time since 2012”, CEO Tjeerd Jegen said.
Jegen pointed to several reasons for the positive results, like how it finalized the implementation of its international formula across the Benelux’ smaller stores. “We have also launched a pilot to trial our international formula for our major stores. We have also launched a new food formula and its preliminary results are positive while the customers are also enthused.”
The company is also doing well internationally, both with its store network and its online platform. The goal is to continue its growth in the current markets, but to tackle new countries as well. “That is why we will enter the Austrian market in the spring of 2018, with our first two stores in the capital, Vienna.”