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, post a consolidated turnover of 184 million lei, gross margin of 91.5 million lei, EBITDA of 16.9 million lei and a net loss of 2.4 million lei in the first six months of 2022.
“All Teilor Holding businesses continued the topline growth in the first semester of 2022, in line with the development plan, growing their local and international footprint, as well as the number of clients served. Yet, the first half of 2022 brought a challenging context for local businesses, including Teilor Holding. The costs generated by the amortization of the positive goodwill and the recognized trademarks following the consolidation significantly impacted the operating result. The general unpredictability caused by the geopolitical conflict, rising inflation, and the depreciation of the leu, especially concerning the US dollar, negatively impacted the financial result and, consequently, the net result. Despite the negative effect of 9.8 million lei in Teilor Holding’s net result of the costs mentioned above, which are not operational, we are satisfied with the results from the first half of the year. The management team of Teilor Holding is permanently connected to the evolution of the economic and financial reality in the local and global economy, having an anticipatory and proactive approach to market developments. We are thus confident that the operating result for the entire year of 2022 will be in line with the development plan presented to bondholders back in November 2021,” stated Mircea Varga, President of the Board of Directors of Teilor Holding.
Regarding the financial results registered by the three entities within Teilor Holding, in the first six months of 2022, the chain of luxury jewelry stores TEILOR recorded a turnover from activity in Romania of 135.4 million lei, an increase of 45% compared to H1 2021, an EBITDA of 10.6 million lei, a decrease of 22% and a net profit of 1.9 million lei, a 77% decrease compared to H1 2021. This increase in topline performance was driven by the diversification of the products sold, the investments made in marketing and brand recognition, and the investments in the expansion of stores in Romania. On the other hand, consumer behavior and demand fluctuated during the first six months of 2022 due to resumed travel, war, inflation, and rising interest rates. Nonetheless, the number of items sold increased by 13% compared to the first semester of 2021, driven by the continued strong demand for engagement rings and wedding bands, segment where TEILOR is a market leader in Romania.
At the consolidated level, which includes the performance of TEILOR’s subsidiaries in Poland, Bulgaria, Hungary, and the Czech Republic, the turnover of TEILOR recorded the value of 136.1 million lei, while the operating expenses reached the amount of 135.4 million lei. Due to the costs related to international expansion, by opening stores in Poland, Hungary and the Czech Republic in H1 2022, as well as the fact that the other stores opened in these markets in 2021 have not yet reached maturity, the consolidated operating result was 1.5 million lei. By the end of 2022, the TEILOR network will include 65 stores, of which 51 stores in Romania and 14 international stores in Poland, Hungary, Bulgaria, and the Czech Republic. Therefore, the focus for the years 2022-2024 will be consolidating the presence in these markets.
The financial lending company, Invest Intermed GF IFN, registered in H1 2022 turnover of 35.8 million lei, a 52% increase compared to H1 2021, determined by the investments made in the development of the agency network using part of the funds raised through corporate bonds issuance. The increase in the topline positively impacted the net profit, which increased 56% year-on-year, reaching 6 million lei in H1 2022.
The third entity within the holding company, Teilor Invest Exchange, registered in H1 2022 a turnover of 8,4 million lei, a 42% increase compared to H1 2021, and a net profit of 1.8 million lei, a 31% decrease year-on-year. The increase in revenues and operating costs was due to the expansion of the MoneyGold network, which serves both Invest Intermed and Teilor Invest Exchange. As of June 30th, 2022, there were 82 MoneyGold agencies across Romania. Between July 1st, 2021, and June 30th, 2022, 14 new agencies were opened in Bucharest, Moreni, Ploiesti, Mangalia, Reșita, Suceava, Huedin, Deva, Arad, Alba-Iulia, Strehaia, Craiova, Bârlad. Also, 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 regarding consolidation: According to OMF 1802, Teilor Holding S.A. could consolidate the results of its operations and subsidiaries for the year 2021 only starting from September 2021, therefore, there are no comparable financial statements of the Group for S1 2021 available. The consolidated results for S1 2022 include results recorded by TEILOR SRL, Invest Intermed SRL and Teilor Invest Exchange SRL.