Analysis and Trends- Teilor Holding posts a consolidated turnover of 371.2 million lei in 2022 – Brief

Teilor Holding posts a consolidated turnover of 371.2 million lei in 2022

Teilor Holding SA, a group of companies that includes the chain of luxury jewelry stores, TEILOR, the financial lending company Invest Intermed GF IFN, and Teilor Invest Exchange, reports a consolidated turnover of 371.2 million lei, EBITDA of 53.8 million lei, a net accounting profit of 10.8 million lei, and a normalized net profit of 23.2 million lei in 2022.

“In 2022, the companies within Teilor Holding recorded rapid development, mainly manifested through expansion both locally and internationally. In the difficult global context, we are pleased with the net result achieved by the Group, especially given that it was affected by inflation and the depreciation of the leu against the dollar, supply chain disruptions, and rising interest rates. Moving forward, we will not give up on investments in expanding our geographic footprint, but we will target the markets where we are already present. It is important to note that, given the accelerated expansion we are pursuing, there were units in 2022 that had not yet reached maturity, and their impact was reflected in a higher proportion of expenses than revenues. Nevertheless, we remain optimistic and confident that the global economic situation will return to normal from 2024 onwards. In the meantime, we remain focused on our customers’ needs and requirements, so that we can continue to offer superior quality products and services that meet the existing demand on the market,” said Mircea Varga, Chairman of the Board of Directors of Teilor Holding.

Regarding the financial results recorded by the three entities within Teilor Holding during 2022, the luxury jewelry chain TEILOR recorded a turnover from its activity in Romania of 274.7 million lei, an increase of 19% compared to 2021, EBITDA of 35.9 million lei, an increase of 8%, and a net profit of 16.1 million lei, a decrease of 19% compared to the previous year. The revenue growth was driven by the diversification of products sold, investments in marketing, brand recognition, and the expansion of the network in Romania. These results were achieved in the context of fluctuating consumer behavior and demand throughout 2022, given the resumption of travel, the outbreak of war, inflation, and rising interest rates.

At the consolidated level, which includes the performance of TEILOR subsidiaries in Poland, Bulgaria, Hungary, Italy, Germany, and the Czech Republic, TEILOR’s turnover reached 269.3 million lei (excluding intra-group sales), an 18% increase compared to 2021, while operating expenses reached 253.6 million lei, a 26% increase compared to the previous year. In 2022, TEILOR expanded its network of stores with nine new units, three in Romania, three in Poland, two in Hungary, and one in the Czech Republic. Thus, given the costs associated with this expansion, coupled with the fact that most of the stores opened in international markets had not yet reached maturity, the net profit recorded was 5.6 million lei, a decrease of 62% compared to 2021. For 2023-2024, the emphasis will be on consolidating the presence in the markets where TEILOR is currently active.

The financial lending company Invest Intermed GF IFN recorded a turnover of 82.5 million lei in 2022, an increase of 77% compared to 2021, mainly due to investments made in developing the network of agencies using part of the funds obtained from the corporate bond issuance in December 2021. The revenue growth had a positive impact on the net profit, which increased by 90% compared to the previous year, reaching 14 million lei in 2022.

The third entity within the holding, Teilor Invest Exchange, recorded a turnover of 20.2 million lei in 2022, a 50% increase compared to 2021, and a net profit of 3.9 million lei, a 13% decrease compared to the previous year. The revenue and operating costs growth was due to the expansion of the MoneyGold network, which serves both Invest Intermed and Teilor Invest Exchange. As of December 31^st, 2022, there were 89 MoneyGold agencies throughout Romania. During 2022, 16 new agencies were opened in Reșița, Huedin, Deva, Arad, Alba Iulia, Strehaia, Bârlad, Târgu Neamț, Mediaș, Deva, Arad, Alba Iulia, Drobeta Turnu Severin, Pitești, Costești, and Târgoviște. Additionally, five agencies were expanded or relocated in Craiova, Urziceni, Topoloveni, Bucharest, and Botoșani.

In November 2021, Teilor Holding carried out two private placements, one in euro and one in lei, raising 45 million lei from BVB investors, the largest private placement for corporate bonds on the AeRO market of the Bucharest Stock Exchange. The two bond issues, in euro and lei, are traded on this market as of December 21st, 2021, under the stock market symbols TEI26 and TEI26E.

Note on the consolidation: In accordance with OMF 1802, Teilor Holding SA consolidated the results of its operations and subsidiaries only starting September 2021, therefore, the consolidated figures for Teilor Holding SA for 2021 are not comparable to those for 2022. The consolidated financial statements for 2022 include the results recorded by TEILOR SRL, Invest Intermed SRL, and Teilor Invest Exchange SRL.

Publisher Mihai MANEA