- Decrease font
- Increase font
- Send to a friend
Click here to bookmark this page
Customize your Bookmarks:
- Type the name of the page the way you would like it to appear in "My Bookmarks";
- Click in the "Add as My Bookmarks" button.
To choose your favorite sessions, please click here.
São Paulo, June 25th, 2020 - Springs Global Participações S.A. (Springs Global), a leading company in bedding, tabletop and bath products, reported in the first quarter of 2020 (1Q20), net revenue of R$ 302.4 million, with gross margin of 31.1%. E-commerce revenue presented growth of 53.3% year-over-year (yoy).
The highlights of Springs Global´s performance in 1Q20 were:
- Net revenue of R$ 302.4 million, with a decline of 11.2% yoy, due to the closure of the stores, as of March 18, resulting on cancellation or suspension of orders from our customers;
- Gross profit of R$ 94.0 million, 3.5% lower than the first quarter of 2019 (1Q19);
- Gross margin of 31.1%, with an increase of 2.5 pp yoy;
- Cost of goods sold (COGS) with a reduction of 14.3% yoy, and sales, general and administrative expenses (SG&A) stable yoy, with higher expenses on digital media in March in order to transfer sales to the digital channels of our brands;
- EBITDA of R$ 20.4 million, with EBITDA margin of 6.7%, with a negative effect due to the Covid-19 pandemic estimated at R$ 15 million;
- Gross debt with a 4.4% reduction yoy, and a decline of 40.4% in the amount in foreign currency;
- Brazil - Wholesale business unit presented growth of 4.3% yoy in income from operations, in spite of the reduction in sales of approximately R$ 40 million, due to cancelations and postponements related to the Covid-19 pandemic;
- Growth of 6.8% yoy in sell-out revenue and 53.5% in e-commerce sales in the Brazil - Retail business unit;
- Argentina business unit showed stable revenue yoy, with an expansion in gross margin of 13.4 pp, in spite of the halt of its operations in March;
- Balance of exchange rate variations of R$ 24.7 million, with negative effect on net results, but with no cash effect;
- Free cash flow of R$ 80.6 million, with a decrease in working capital of R$ 101.1 million yoy; and
- Results related to the affiliate Keeco, with no cash effect, negative of R$ 120.8 million, that consists of equity loss in affiliate, impairment of goodwill calculated on its investment, and revaluation of deferred taxes, due to a new projection of Keeco’s results, considering the new economic scenario in the United States resulting from the pandemic.
To access the PDF file, click here.
Springs Global will host a conference call and webcast on June 26, 2020, at 11 am São Paulo time, 10 am New York time and 3 pm London time, in Portuguese with simultaneous translation to English.
Earnings conference call - 1Q20
Time: 11 am São Paulo time / 10 am New York time / 3 pm London time
In Portuguese: +55 11 3181-8565/ +55 11 4210-1803
In English: +1 844 204-8942 (Toll free) / +1 412 717-9627
Passcode: Springs Global
To access the webcast (live and replay) in English click here or access the website http://www.springs.com.br/ri
For further information, contact:
+55 11 2145-4476
Alessandra Gadelha - IR Officer