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Italy's OVS SpA reports strong sales & margin growth in H1 2024

23 Sep '24

2 min read

Italy's OVS SpA reports strong sales & margin growth in H1 2024

Pic: OVS

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OVS SpA reported that its net sales went up 3.6 per cent to €762 million (~$853.44 million) and adjusted EBITDA rose to €89 million (~$99.68 million) in H1 2024.
Despite weather challenges, gross margin improved to 59.6 per cent.
The company's brands, especially Upim and B.Angel, showed robust growth.
OVS remains optimistic for H2, extending its buyback programme by €10 million ($11.20 million).

OVS SpA has announced significant growth in both sales and margins for the first half (H1) of 2024, ended July 31, 2024, with net sales reaching €762 million (~$853.44 million), a 3.6 per cent increase compared to the same period last year. The company's gross margin improved to 59.6 per cent, equivalent to €66.75 million (~$66.75 million), a rise of 200 basis points from the 57.7 per cent recorded in the first half of 2023.

Adjusted EBITDA came in at €89 million (~$99.68 million), representing an increase of €2.6 million compared to H1 2023. Adjusted net profit also rose to €34.6 million (~$38.75 million), up by €0.9 million year-on-year, the company said in its financial statement.

Despite adverse weather conditions in the second quarter, OVS’ performance remained resilient. The group's flagship brand saw strong sales growth, while Upim registered a notable 7.3 per cent increase in sales. The company also highlighted the success of its Piombo Contemporary line, which targets a more refined customer base, and the B.Angel brand, which doubled its sales over the past two years. The beauty segment continued its strong performance, supported by social media-driven activations.

OVS’ net financial position stood at -€263 million (~-$294.56 million) as of July 31, 2024, reflecting €80 million (~$89.60 million) spent on treasury shares and dividends over the past year. Despite this, the company generated approximately €60 million (~$67.20 million) in cash during the same period.

Looking ahead, the company remains optimistic for the second half of the year. August sales rose by 7 per cent, and September has seen double-digit growth so far, driven by the success of the autumn collections. The company’s board has approved a further €10 million (~$11.20 million) extension to its buyback programme, underlining confidence in future performance.

OVS plans to continue expanding its brand portfolio and sales network while maintaining a focus on cost efficiency and sustainable growth. With strong momentum entering the second half, the group is on track to deliver robust results for the remainder of 2024.

Fibre2Fashion News Desk (KD)

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