Q2 2024 OVS SpA Earnings Call Transcript
Key Points
- OVS SpA (FRA:0OV1) achieved a solid like-for-like growth across all segments, outperforming the market which was flat or slightly negative.
- Upim, the company's second brand, saw a 7% increase in sales and is nearing its profitability level.
- The group achieved a global gross margin increase of almost 200 basis points, indicating strong financial health.
- The company expects continued gross margin growth in the second half of 2024, driven by a weaker dollar and lower markdowns.
- Strong sales performance in August and early September, with a notable 7% increase in August and up to 80% growth in early September.
- Negative weather conditions in May and June negatively impacted sales, although July was neutral.
- Higher marketing costs in the first half, including a EUR2 million investment in TV advertising, affected EBITDA.
- The company faced discontinuity in labor contributions, which were not confirmed for 2024, impacting costs.
- Inventory levels increased due to longer transit times between the Far East and Europe, partly due to the Suez Canal crisis.
- Net financial position worsened by EUR20 million compared to last year, partly due to dividend and buyback payments.
Good afternoon. This is the chorus call conference operator. Welcome and thank you for joining the OVS first half 2024 financial results conference call. (Operator Instructions)
At this time, I would like to turn the conference over to Mr. Stefano Beraldo, Chief Executive Officer of OVS. Please go ahead, sir.
Good afternoon to everyone. Thank you for being with us for this six month result of OVS. As you have seen from the press release, we had a -- I would say, a more than decent quarter and a good six months. And the quarter has been still again, so I would say was more penalized by negative weather. And this means that whether it is something that cannot be missed when we comment our results.
The month of May has been a similarly to last year, very rainy and cold compared to normal. The month of June has been much worse in terms of a rain and temperature compared to even last year where when it was much worse than normal.
So at least we have
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