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Scotch & Soda posts 3 percent rise in annual turnover

By Prachi Singh

Oct. 3, 2017

Business

On a consolidated basis, Scotch & Soda reported revenue growth of 3 percent to 335.6 million euros (394 million dollars) for fiscal 2016/17 from 325.9 million euros (382 million dollars) a year earlier. The Amsterdam-based company returned to profitability last year after reporting heavy losses in the year 2014/15. This year again the company posted losses of 5.4 million euros (6.3 million dollars) against a profit of 1,1 million euros (1.2 million dollars) last year.

The company said in a statement that it plans to continue controlled investments in its retail store roll-out plan in the core markets, which it believes has been a key part the company’s successful growth in the recent years. The company intends to win with the winners by taking more control over its wholesale channel and collaborating more closely with the large key accounts and online pure players to improve sell-through and margins.

Retail sales grow, decline in wholesale narrows

On the back of new store openings and positive like-for-like sales growth, the company’s retail sales improved 22.1 percent to 90.7 million euros (106 million dollars) from 74.3 million euros (87 million dollars) in 2015/16. The company said, ecommerce sales increased 7.3 percent to 41.1 million euros (48 million dollars). The company expanded its online presence with localised stores in 14 countries.

The company added that decline in its wholesale business slowed down with sales reaching 203.7 million euros (239 million dollars) against 213.3 million euros (250 million dollars) last year. Last year, the company’s wholesale results were disappointing, though they accounted for 65 percent of the company’s total turnover. The wholesale turnover decreased by 7 percent in 2015/16 to 213.3 million euros (250 million dollars).

Adjusted EBITDA improved 12 percent to 50.9 million euros from 45.4 million euros in FY15/16, while adjusted EBITDA margin improved 130 bps from 13.9 percent to 15.2 percent.

Scotch & Soda expands worldwide retail presence

Earlier this year, the company took direct control of its wholesale operations in Germany with its own Scotch & Soda sales team. The company also acquired the Canadian wholesale distribution and five retail stores from its Canadian business partner.

As a part of its retail expansion plans, Scotch & Soda opened 19 new company-owned store in the Netherlands, Germany, France, the United States and added 23 new franchise stores to its global retail store network. The number of company-owned stores at the end the year reached 101 compared to 80 a year earlier, while franchise stores were 105 against 96 last year. At the end of the year, the company operated 206 mono-brand stores and over 7000 points of sales across the world.

On July 28, 2017, Scotch & Soda acquired its wholesale Norway and on August 8, the company acquired one retail store in Norway from Brandment. On August 17, the company took control of its wholesale distribution in Sweden.

Picture:Facebook/Scotch Official