Springs Global: EBITDA expands by 20% and Income from operations by 32%

São Paulo, March 23th, 2017 - Springs Global Participações S.A. (Springs Global), the Americas’ largest company in bedding, tabletop and bath products, reported in 2016 net revenue of R$ 2,311.3 million and EBITDA of R$ 265.7 million, continuing its course of growth, with margin expansion.

The highlights of Springs Global’s performance in 2016 were:

  • Net revenue of R$ 2,311.3 million, 1.9% higher than 2015, with stable gross margin, equal to 26.8%;
  • EBITDA of R$ 265.7 million, or R$ 258.5 million adjusted, with a year-over-year (yoy) increase of 19.7%;
  • EBITDA margin of 11.5%, or 11.2% adjusted, with a 1.7 percentage point (pp) expansion against 20151;
  • Income from operations amounted to R$ 168.9 million, or R$ 180.9 million adjusted, 31.8% higher yoy;
  • Net result negatively impacted by: (i) the net exchange rate variation account in the financial result (-R$ 93.6 million yoy), due to the appreciation of the Brazilian real against the US dollar, and (ii) provision for devaluation of Retail stores (-R$ 19.1 million), all of them with no cash effect;
  • Net profit of R$ 25.6 million in the last quarter of 2016;
  • Growth of 30.0% of sales of intermediate products, enabling the maintenance of sales level in the South America - Wholesale business unit;
  • Growth of 71.5% of adjusted EBITDA from North America - Wholesale business unit;
  • Seven new franchise stores in the fourth quarter of 2016 (4Q16) and increase of 1.3% of sell-out from South America - Retail business unit, although we had less six stores in the end of 2016.

To access the PDF file, click here.

Springs Global will host a conference call and webcast tomorrow, March 24th, 2017, at 11am São Paulo time, 10 am New York time and 2 pm London time, in Portuguese with simultaneous translation to English.

Earnings conference call - 4Q16 and 2016

Date: 03/24/2017
Time: 11 pm São Paulo time / 10 am New York time / 2 pm London time

In Portuguese: +55 11 3193-1001/ +55 11 2820-4001
In English: +1 888 700-0802 (Toll free) / +1 786 924-6977
Passcode: Springs Global

To access the webcast (live and replay) in English click here or access the website