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HEMA records a net loss of 1.6 million despite higher sales

2019-12-17T10:19:10.114Z

Store chain HEMA has seen its revenue for the third quarter grow by 4.2 percent compared to last year. Turnover comes to 317.2 million, the chain announced on Tuesday. Despite the higher turnover, HEMA again recorded a net loss of 1.6 million euros. According to the retail chain, this has to do with the switch to a new accounting system.



Store chain HEMA has seen its revenue for the third quarter grow by 4.2 percent compared to last year. Turnover comes to 317.2 million, the chain announced on Tuesday. Despite the higher turnover, HEMA again recorded a net loss of 1.6 million euros. According to the retail chain, this has to do with the switch to a new accounting system.

Turnover is increasing because HEMA customers are increasingly finding the store online. The online sales of the retail chain increased by 34.6 percent compared to the same quarter last year.

The so-called like-for-like turnover, where the circumstances are compared with last year and, for example, newly opened stores are not included, grew by 2.7 percent.

"We are pleased with our results in the third quarter. We have shown solid like-for-like revenue growth. Despite strong competition, we have grown much faster online than the market. Our online activities have been profitable for the past two years and this profitability increased further in the third quarter, "said CEO Tjeerd Jegen.

Despite the positive words from Jegen, it seems that the traditional Dutch retail chain is not doing well. The company is struggling with a lot of debts, so credit rating agency Moody's lowered the creditworthiness of the chain in November. Moody's lowered the rating from B3 to Caa1. This means that the credit rating agency is less certain that the retail chain can pay off its debts.

Source: nunl

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