# JD Sports Fashion Plc Continue to make excellent progress with Group EBITDA increasing by a further 27% - Link: https://www.directorstalkinterviews.com/jd-sports-fashion-plc-continue-to-make-excellent-progress-with-group-ebitda-increasing-by-a-further-27/412772184 - Published: 2019-04-16T07:42:16+01:00 - Author: Charlotte Edwards **[JD Sports Fashion Plc](https://www.directorstalkinterviews.com/ftse-company/jd-sports-fashion/jd.l)**( LON:JD), a leading retailer of sports, fashion and outdoor brands, today announces its Preliminary Results for the 52 weeks ended 2 February 2019 (2018: 53 weeks ended 3 February 2018). | | 2019 | 2018 | % Change | | | £m | £m | | | | | | | | Revenue | 4,717.8 | 3,161.4 | +49.2% | | | | | | | Gross profit % | 47.5% | 48.4% | | | | | | | | EBITDA* | 488.4 | 385.2 | +26.8% | | Depreciation / amortisation | (126.9) | (76.4) | | | | | | | | Operating profit (before exceptional items)* | 361.5 | 308.8 | +17.1% | | Net interest expense | (6.3) | (1.4) | | | | | | | | Profit before tax and exceptional items* | 355.2 | 307.4 | +15.5% | | Exceptional items | (15.3) | (12.9) | | | | | | | | Profit before tax | 339.9 | 294.5 | +15.4% | | | | | | | Basic earnings per ordinary share | 26.90p | 23.83p | | | Adjusted earnings per ordinary share* | 28.44p | 25.15p | | | | | | | | Total dividend payable per ordinary share | 1.71p | 1.63p | | | | | | | | Net cash at period end (a) | 125.2 | 309.7 | | a) Net cash consists of cash and cash equivalents less interest-bearing loans and borrowings b) Throughout this release ‘*’ indicates first instance of a term defined and explained in the Glossary at the end of these preliminary results Group Highlights · Record result with EBITDA (before exceptional items) increased by a further 26.8%, being more than £100 million, to £488.4 million (2018: £385.2 million). · Depreciation includes £29.4 million (2018: £nil) from the combined Finish Line and JD business in the United States in the 33-week period post acquisition. · Headline profit before tax and exceptional items increased by 15.5% to £355.2 million (2018: £307.4 million). · Profit before tax increased to £339.9 million (2018: £294.5 million). · Encouraging total like for like sales* growth in global Sports Fashion fascias of more than 6% achieved against a backdrop of widely reported retail challenges in the Group’s core* UK market. · Robust gross margin performance in like for like Sports Fashion businesses*. · International development of the JD fascia continues: a) Net increase of 39 stores (2018: 56 stores) for the JD fascia across Europe b) A further 34 JD stores opened in the Asia Pacific region in the year (2018: nine stores) · Acquisition of Finish Line in the United States significantly extends the Group’s global reach with the trial of the JD fascia delivering encouraging early results. · Double digit EBITDA maintained in the Outdoor fascias after a particularly weather- challenged trading period. · Revenue, gross margin and operating profit before exceptional items of the two business segments are tabulated below: | Period to 2 February 2019   |   Sports Fashion £m | |   Outdoor £m | |   Total £m | | | | | | | | | Revenue | 4,296.4 | | 421.4 | | 4,717.8 | | | | | | | | | Gross margin % | 48.0% | | 42.5% | | 47.5% | | | | | | | | | EBITDA | 478.4 | | 10.0 | | 488.4 | | Depreciation / amortisation^(1) | (112.6) | | (14.3) | | (126.9) | | Operating profit / (loss) before exceptional items |   365.8 | |   (4.3) | |   361.5 |   ^(1) Depreciation / amortisation includes non-trading charges for the amortisation of various fascia names and brand names consequent to the accounting on acquisitions. These charges are as follows:   ·            Sports Fashion: £7.5 million (2018: £2.7 million) ·            Outdoor: £4.5 million (2018: £4.5 million)   | Period to 3 February 2018   |   Sports Fashion £m | |   Outdoor £m | |   Total £m | | | | | | | | | Revenue | 2,745.0 | | 416.4 | | 3,161.4 | | | | | | | | | Gross margin % | 49.2% | | 43.5% | | 48.4% | | | | | | | | | EBITDA | 362.2 | | 23.0 | | 385.2 | | Depreciation / amortisation | (62.2) | | (14.2) | | (76.4) | | Operating profit before exceptional items |   300.0 | |   8.8 | |   308.8 | | | | | | | | · Final dividend payable increased by 5.1% to 1.44p (2018: 1.37p) bringing the total dividend payable for the year to 1.71p (2018: 1.63p) per ordinary share, an increase of 4.9%. > **Peter Cowgill, JD Sport Fashion Executive Chairman, said:** > “I am very pleased to report that the Group continues to make excellent progress > with Group EBITDA (before exceptional items) increasing by a further 27%, being > more than £100 million, to £488.4 million (2018: £385.2 million). The headline > profit before tax and exceptional items increased by a further 16% to £355.2 million( > 2018: £307.4 million) and, after delivering a headline profit of £100 million > for the first time in the year to January 2015, the headline profit has now increased > by more than £250 million over the subsequent four years, a compound rise in excess > of 37% per annum. The Group profit before tax increased by 15% to £339.9 million( > 2018: £294.5 million). > “We firmly believe that the elevated and dynamic multibrand multichannel proposition > of the core JD fascia, which enjoys the ongoing support of the key international > brands, has the necessary agility to continue to exceed consumer expectations > and prosper in an increasing number of international markets. > “We believe that our acquisition of the Finish Line business in the United States, > the largest market for sport lifestyle footwear and apparel and the home to many > of the global sportswear brands, will have positive consequences for our long- > term brand engagement whilst significantly extending the Group’s global reach. > We maintain our belief that Finish Line is capable of delivering improved levels > of profitability. > “Given the significance of Easter trading to the overall result of the Group and > the change in the timing relative to last year, any announcement of like for like > sales performance in the year to date would lack precision. However, we are pleased > with the continued underlying positive performance of the Group and are excited > by the major developments ahead.” Share on: