Home 170530 BeterBed | uncertainties create opportunities
170530 BeterBed | uncertainties create opportunities

170530 BeterBed | uncertainties create opportunities

No. pages 30
Description A disappointing share price performance due to unfavorable geographic mix and rising costs
We have published a new report (30 pages) featuring Beter Bed following earlier reports last July 2015 and April 2016. There is no denying that the upside potential that we expected hasn't materialized. Beter Bed's share price dropped considerably thereby underperforming the market. Main reasons for the disappointments were a negative sales growth performance in Germany and accelerating operational costs in general. Ironically, Dutch sales growth rates were so strong that additional capacity was needed to absorb the sales jump.

Road map of our report: Shorter and longer term trends and what about leases?
Chapter 1 of this company report presents further by presenting 2 scenarios. We might be early regarding this subject, but we believe a sluggish share price performance might also have been related to the uncertainties related to leases. However, cash flows will not (hardly) change following the implementation of IFRS 16. Moreover, details our investment case. In Chapter 2 we deepen our focus on longer term trends, specifically on sales densities per country and banner. Lastly, in Chapter 3, we shed our light on the potential impact of the implementations of IFRS 16 as of January 2019 Beter Bed has included provisions in its agreements so that debt covenants are not breached as a result of applying IFRS 16. Bottom line, IFRS 16 should not be a reason for worries, in our view.

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Created Date: Tuesday May 30, 2017 12:27:14
Last Updated Date: Tuesday May 30, 2017 12:27:14
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