Hemtex’s year-end report shows strong growth and increased profitability

The Hemtex Group continued to show profitable growth during the fourth quarter of the company’s 2005/2006 fiscal year, namely the February 1 to April 30 period.

During the quarter, net sales rose 44 percent to SEK 255.6 million. The growth was mainly driven by sharply higher sales in the Group’s comparable stores and by the contribution made by newly established and acquired stores. When combined with a higher margin, the strong growth generated profit of SEK 17.7 million after tax during the quarter, compared with SEK 12.0 million during the year-earlier period. Full-year net sales rose 44% to SEK 1,159.7 million, and full-year profit after tax nearly doubled to SEK 130.5 million. “We have had a successful year, with strong growth and improved profitability. We have captured market shares in all countries and established operations in the Norwegian market during the year. I expect us to continue to grow under healthy profitability during the current year,” says Hemtex President and CEO, Anders Jansson. During the fiscal year, the Hemtex Group opened a total of 24 new stores, including 11 in Sweden, 10 in Finland, two in Denmark and one in Norway. The rate of establishment will remain high in 2006/2007. Hemtex expects to open approximately 35 new proprietary stores during the year. The company already has contracts for 30 stores.