Reported Earnings • Jul 26
First half 2023 earnings released: EPS: €0.17 (vs €0.08 in 1H 2022) First half 2023 results: EPS: €0.17 (up from €0.08 in 1H 2022). Revenue: €118.4m (up 5.4% from 1H 2022). Net income: €4.55m (up 110% from 1H 2022). Profit margin: 3.8% (up from 1.9% in 1H 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Specialty Retail industry in Germany. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has increased by 33% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Jul 25
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 2.3% Last year net profit margin: 5.9% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (27% average weekly change). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (2.3% net profit margin). New Risk • Jul 11
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of German stocks, typically moving 27% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (27% average weekly change). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (2.3% net profit margin). Duyuru • Jul 11
Torqx Capital Partners agreed to acquire Beter Bed Holding N.V. (ENXTAM : BBED) for approximately €170 million. Torqx Capital Partners agreed to acquire Beter Bed Holding N.V. (ENXTAM : BBED) for approximately €170 million on July 10, 2023. Under the terms, consideration will be paid in cash for €6.10 per share. BBH’s Boards fully and unanimously support the Offer and the transactions. Torqx will fund the Transaction entirely through a combination of equity and prudent debt financing package. Offer is expected to settle in the beginning of 2024.The Transaction is subject to customary pre-offer conditions and offer conditions, including obtaining the Competition Clearance and Minimum acceptance level of at least 80% of the Shares. Michel Cijsouw, Victor Sperling, Aaron van Gils and Jimmy Teelen of Rabobank are acting as financial advisors and De Brauw Blackstone Westbroek N.V. is acting as legal advisor to the Beter Bed. OXEYE Advisors is acting as financial advisor, Stibbe N.V. as legal advisor to Torqx Capital Partners. Valuation Update With 7 Day Price Move • Jul 10
Investor sentiment improves as stock rises 97% After last week's 97% share price gain to €5.75, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 11x in the Specialty Retail industry in Germany. Total returns to shareholders of 211% over the past three years. Duyuru • May 11
Beter Bed Holding N.V. Declares Dividend for the Financial Year 2022, Payable on May 22, 2023 Beter Bed Holding N.V. declared a dividend of €0.15 per share for the 2022 financial year. The dividend will be distributed fully in cash. ex-dividend May 12, 2023, record date May 15, 2023 and Payment date May 22, 2023. Upcoming Dividend • May 05
Upcoming dividend of €0.15 per share at 4.9% yield Eligible shareholders must have bought the stock before 12 May 2023. Payment date: 22 May 2023. Payout ratio is on the higher end at 77%, however this is supported by cash flows. Trailing yield: 4.9%. Within top quartile of German dividend payers (4.7%). Higher than average of industry peers (2.6%). Reported Earnings • Mar 12
Full year 2022 earnings released: EPS: €0.19 (vs €0.47 in FY 2021) Full year 2022 results: EPS: €0.19 (down from €0.47 in FY 2021). Revenue: €229.4m (up 7.1% from FY 2021). Net income: €5.27m (down 58% from FY 2021). Profit margin: 2.3% (down from 5.9% in FY 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 3.5% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Specialty Retail industry in Germany. Over the last 3 years on average, earnings per share has increased by 51% per year but the company’s share price has only increased by 35% per year, which means it is significantly lagging earnings growth. Duyuru • Jul 28
Beter Bed Holding N.V. to Report Fiscal Year 2022 Results on Mar 10, 2023 Beter Bed Holding N.V. announced that they will report fiscal year 2022 results on Mar 10, 2023 Reported Earnings • Jul 25
First half 2022 earnings released First half 2022 results: Revenue: (down 100% from 1H 2021). Net income: (down €4.07m from profit in 1H 2021). Profit margin: (down from 4.2% in 1H 2021). The decrease in margin was driven by lower expenses. Over the next year, revenue is forecast to stay flat compared to a 8.6% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 71% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • May 06
Upcoming dividend of €0.15 per share Eligible shareholders must have bought the stock before 13 May 2022. Payment date: 23 May 2022. Trailing yield: 3.2%. Lower than top quartile of German dividend payers (4.1%). Higher than average of industry peers (2.9%). Reported Earnings • Mar 13
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: €0.47 (up from €0.37 in FY 2020). Revenue: €214.2m (up 3.3% from FY 2020). Net income: €12.5m (up 36% from FY 2020). Profit margin: 5.9% (up from 4.5% in FY 2020). The increase in margin was driven by higher revenue. Like-for-like sales growth: 1.2% vs FY 2020 Revenue was in line with analyst estimates. Over the next year, revenue is forecast to grow 11%, compared to a 18% growth forecast for the retail industry in Germany. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Mar 09
Investor sentiment deteriorated over the past week After last week's 17% share price decline to €3.48, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 11x in the Specialty Retail industry in Europe. Total loss to shareholders of 19% over the past three years. Reported Earnings • Jul 24
First half 2021 earnings released: EPS €0.15 (vs €0.11 in 1H 2020) The company reported a solid first half result with improved earnings and profit margins, although revenues were flat. First half 2021 results: Revenue: €97.2m (flat on 1H 2020). Net income: €4.07m (up 44% from 1H 2020). Profit margin: 4.2% (up from 2.9% in 1H 2020). Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Jun 12
Investor sentiment improved over the past week After last week's 16% share price gain to €7.13, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 14x in the Specialty Retail industry in Europe. Total loss to shareholders of 4.9% over the past three years. Valuation Update With 7 Day Price Move • May 15
Investor sentiment improved over the past week After last week's 25% share price gain to €6.50, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 15x in the Specialty Retail industry in Europe. Total loss to shareholders of 17% over the past three years. Reported Earnings • Mar 14
Full year 2020 earnings released: EPS €0.32 (vs €0.19 loss in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: €222.1m (up 20% from FY 2019). Net income: €7.94m (up €12.1m from FY 2019). Profit margin: 3.6% (up from net loss in FY 2019). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 57% per year but the company’s share price has only fallen by 19% per year, which means it has not declined as severely as earnings. Analyst Estimate Surprise Post Earnings • Mar 14
Revenue beats expectations Revenue exceeded analyst estimates by 0.005%. Over the next year, revenue is forecast to grow 1.8%, compared to a 7.5% growth forecast for the Specialty Retail industry in Germany. Is New 90 Day High Low • Jan 09
New 90-day high: €5.43 The company is up 75% from its price of €3.10 on 09 October 2020. The German market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Specialty Retail industry, which is down 1.0% over the same period. Is New 90 Day High Low • Nov 11
New 90-day high: €4.16 The company is up 67% from its price of €2.49 on 13 August 2020. The German market is flat over the last 90 days, indicating the company outperformed over that time. It also outperformed the Specialty Retail industry, which is up 5.0% over the same period. Is New 90 Day High Low • Oct 08
New 90-day high: €3.13 The company is up 56% from its price of €2.01 on 10 July 2020. The German market is up 3.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Specialty Retail industry, which is up 18% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €81.24 per share.