Douglas Group reduces net debt, Q2 sales up 11.5 percent

Omni-channel beauty retailer Douglas Group has secured a new refinancing of 1.3 billion euros.

Following its listing on the Frankfurt Stock Exchange at the end of March, the company had used the proceeds and a capital injection to partially prepay an existing facilities agreement amounting to 675 million euros. With the fresh financing, the group has redeemed the remaining existing financial indebtedness.

In the second quarter, the company’s sales increased by 11.5 percent based on preliminary and unaudited figures backed by strong development in all areas and consistent performance of the omnichannel business model.

“With this important step, we have established a strong financial foundation for the coming years. At the same time, we are in a position to make investments from our cashflow into our successful business model and future growth. It is our firm goal to further reduce our debt and to start paying dividends in the medium term,” said Mark Langer, CFO of the Douglas Group in a statement.

The company added that the new financing includes a term loan facility of 800 million euros, a bridge facility of 450 million euros. The company has further secured a revolving credit facility (RCF) of 350 million euros.

The company's second quarter store sales improved by 12 percent, while ecommerce sales also rose by 10.7 percent.

Commenting on the preliminary second quarter update, Sander van der Laan, CEO of the Douglas Group, said: “After a very good start to the financial year during the Christmas period, we have followed up with another excellent quarter: The results for the first three months of the 2024 calendar year are an impressive demonstration of the attractiveness of our offering, our exceptional customer loyalty and the resilience of our omnichannel model.”