EQS-News

Strong financial foundation: DOUGLAS Group reduces net debt by 1 billion euros and increases financial flexibility

EQS-News: Douglas AG / Key word(s): Financing Strong financial foundation: DOUGLAS Group reduces net debt by 1 billion euros and increases financial flexibility 15.04.2024 / 16:49 CET/CEST The issuer is solely responsible for the content of this announcement. THIS ANNOUNCEMENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER OR INVITATION TO SELL OR ISSUE, OR ANY SOLICITATION OF AN OFFER TO PURCHASE OR SUBSCRIBE FOR, ANY SECURITIES OF DOUGLAS AG, KIRK BEAUTY SUN GMBH OR DOUGLAS SERVICE GMBH.

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Comprehensive Refinancing

Strong financial foundation: DOUGLAS Group reduces net debt by 1 billion euros and increases financial flexibility

• New financing at greatly improved conditions; reduction in interest expenses expected to be up to 100 million euros on annualized base
• Term loan facility in an amount of 800 million euros plus bridge facility of 450 million euros; additional revolving credit facility (RCF) of 350 million euros
• Full refinancing of financial indebtedness achieved, among others, through proceeds from IPO and equity injection; leverage ratio[1] falls from 4.0x to approx. 2.7x (calculated on adjusted EBITDA (LTM) and liquidity as of 31.12.2023)
• Sales growth trend accelerates: Group sales (net) increased by 11.5% in the second quarter of the financial year 2023/24 (January to March 2024) based on preliminary figures
• Growth backed by strong development across all areas: Double-digit sales growth (net) in both channels (stores +12.0%, E-Commerce +10.7%) and positive development in all segments; all segments continued to grow vs. PY in Q2 and in first half of the financial year

Düsseldorf, 15 April 2024 – The DOUGLAS Group, Europe’s number one omnichannel premium beauty destination, has paved the way for the future with a comprehensive refinancing. Following its listing on the Frankfurt Stock Exchange at the end of March, the company had already used the proceeds and a capital injection to partially prepay an existing facilities agreement in the amount of 675 million euros (nominal). In a second step, with today’s drawing of 1.3 billion euros under the new financing of in total 1.6 billion euros, the Group now redeemed the remaining existing financial indebtedness. As a result of the refinancing, the leverage ratio decreased significantly from previously 4.0x to approx. 2.7x.