Dutch bed chain Beter Bed Holding has suffered from problems in Germany during the first semester of its fiscal year, causing its turnover and profits to go down. The Dutch and Belgian markets performed better, but failed to save the day.
Online growth
The group’s turnover went down 3.9 % to 201.6 million euro, while profit even went down twice as fast (-7.9 %). That negative trend is caused by a scandal in Germany, where toxins were found in matresses and pillows that were sold by Beter Bed after problems at its supplier BASF. Afterwards, German turnover crashed by 9.4 % (in the first quarter), but the tide is turning after a new management was appointed. Also, new commercial initiatives should boost traffic and turnover.
Dutch growth was 4.8 % in Q1 and 3.1 % in Q2, outperforming the general market on both accounts as the new management aims to reinforce the group in the value for money segment. In Belgium, turnover growth in both quarters combined was a whopping 48.6 %. Online turnover from both countries went up 19 %, while Sweden witnessed a 13.8 % turnover hike. In Spain however, the company has lost all hope that local chain El gigante del colchón would ever become profitable and has decided to sell said chain during the current year.
Aside from the financial results, Beter Bed announced the arrival of Hugo van den Ochtend as CFO. Van den Ochtend currently works at Ahold Delhaize‘s Gall & Gall and will succeed Bart Koops, who will leave the company on 1 August.
