CALIDA GROUP press release
ad hoc announcement pursuant to article 53 LR
Sursee (Switzerland), 25 July 2024
 

• Structural optimization of the Group through organizational and personnel realignment – strategic reorientation is progressing
• Currency-adjusted decline in sales of 8.8% to CHF 111.3 million – CALIDA and AUBADE brands perform well despite subdued consumer sentiment
• Positive development of working capital and free cash flow
• Adjusted operating profit from continuing operations of CHF 0.5 million – adjusted net loss of CHF 0.5 million

“The year to date has seen us systematically pursuing the strategic realignment adopted by the Group Board of Directors in 2023, with its focus on operational excellence and the streamlined, goal-oriented processes this entails. Optimization of our Group structure and personnel is progressing as planned. The recent disposal of LAFUMA MOBILIER is consistent with our plan to focus the CALIDA GROUP on the textile segment. Our core brands CALIDA, AUBADE and COSABELLA are well positioned internationally and offer attractive potential for growth. The new CALIDA GROUP is steadily gaining definition and is well prepared to get back on the road to success”, comments Felix Sulzberger, Executive Chairman of the Board of Directors of the CALIDA GROUP, the half-year results 2024. 

Structural optimizations and personnel reinforcements 
The discontinuation of the ONMYSKIN online platform was completed in the first quarter, and further progress was made on integrating the former subsidiary Reich Online into the CALIDA organisation. This will further strengthen the Group's thriving e-commerce business.

In addition, personnel changes helped optimise the CALIDA GROUP's operational structure. With effect from 1 July 2024, Irem Aydin took over as the new General Manager for the CALIDA brand. Prior to this, she was Director Operations and a member of Executive Management of CALIDA AG. In her new role, Irem Aydin will be working to further grow the strong market position of the traditional brand. At COSABELLA meanwhile, Stéphanie Sauvage moved into the General Manager role for the brand, having previously been Head of Collection & R&D for AUBADE. Under her leadership, COSABELLA will unlock its current potential and develop into a profitable, attractive and competitive lingerie brand in the US market.
 

Focus on textile business 
The sale of LAFUMA MOBILIER to Peugeot Frères Industrie as communicated on 12 July 2024 allows the CALIDA GROUP to focus on its core business of underwear and lingerie. Completion of the transaction is expected within the current quarter. In the first half of 2024, LAFUMA MOBILIER generated sales of EUR 30.8 million, a currency-adjusted decrease of 18.2%, year-on-year. Due to the forthcoming disposal of LAFUMA MOBILIER, the brand is classified as a discontinued operation in the half-year results for 2024.
 

Subdued consumer sentiment weighs on sales performance – CALIDA and AUBADE report very positive results
CALIDA GROUP operational business in H1 2024 was defined by extremely weak consumer demand. The above-average demand seen during the coronavirus pandemic and the market saturation following in its wake left manufacturers and retailers with large inventories that need to be reduced. This has led to significant downward pressure on prices in CALIDA GROUP markets, at the same time as production costs have been on the rise. In addition, inflation has eroded consumer purchasing power, sharply reducing in-store sales.

Both CALIDA and AUBADE performed very strongly in a challenging market environment. CALIDA's contribution to Group sales was CHF 69.9 million (-3.6%) and AUBADE's was EUR 33.6 million (-3.9%). In other words, these brands did very well compared to the same period a year earlier (H1 2023). There is confidence that CALIDA will be able to maintain its strong market position in H2, this being the significantly stronger half for the brand. With the French market particularly hard hit by consumer reticence, sales for AUBADE are expected to extend their slight underperformance year-on-year into H2.

Acquired in 2022, the US lingerie brand COSABELLA remains a challenging investment. COSABELLA underwent ongoing restructuring and strategic realignment in H1 2024. As anticipated, this led to a drop in sales to USD 10.3 million (-18.6%). Moreover, the realignment will continue to absorb financial and human resources. The transitional agreement with COSABELLA retailers expires in May 2025, three years after the acquisition. At that point, the rights to the brand for non-US markets transfer to the CALIDA GROUP, as does unfettered access to COSABELLA's product development and supply chain. From spring 2025, therefore, the Group can market COSABELLA worldwide outside the US.

CALIDA GROUP sales from continuing operations in H1 2024 were CHF 111.3 million, down 8.8% on H1 2023 when adjusted for currency effects (-5.1% excluding the discontinued onmyskin.com shop). Reflecting market and business performance, currency-adjusted operating profit from continuing CALIDA GROUP operations was CHF 0.5 million in H1 2024 (H1 2023: CHF 2.3 million). The EBIT margin was 0.5% (H1 2023: 1.9%) due to the impact of higher sourcing costs on margins. Adjusted for currency effects, continued operations generated a net loss of CHF 0.5 million in H1 2024 (H1 2023: net income of CHF 1.2 million).

The operating result contrasts with the targeted positive performance of working capital and free cash flow. The CALIDA GROUP successfully reduced pandemic-related excess product inventory, achieving a significantly lower working capital position, year-on-year. As a result, free cash flow improved to CHF 10.3 million (H1 2023: CHF -19.0 million). Net liquidity improved by CHF 13.9 million, year-on-year, despite an operational break-even and excluding the sale of LAFUMA MOBILIER.

Continued focus on operational excellence
Despite an ongoing weak market environment expected for H2, a solid full-year Group operating result that exceeds the figure for 2023 is anticipated. The positive impact of the strategic course on the organic development of our core brands CALIDA and AUBADE as well as the expansion of COSABELLA and the US market will gradually take full effect.
 

For further information, please contact: 
Calida Holding AG 
Dave Müller, CFO
Phone: +41 41 925 43 20
investor.relations@calidagroup.com

Jürg Stähelin, IRF
Phone: +41 43 244 81 51
staehelin@irf-reputation.ch
 

Financial calendar 2024/25
Full-year results 2024     21 February 2025

The CALIDA GROUP is a globally active company for premium underwear with its head office in Switzerland. It consists of the brands CALIDA, AUBADE and COSABELLA in the underwear and lingerie segment. The CALIDA GROUP stands for high-quality products that delight consumers every day. In the first half of 2024, the Group generated sales of over CHF 111 million with almost 2,400 employees. The registered shares of Calida Holding AG (CALN) are traded on SIX Swiss Exchange AG.