The Munich retail group Ludwig Beck increased its sales significantly in the first half of the 2022 financial year. The company also reported a smaller loss on Thursday and confirmed its full-year guidance.
In the months from January to June, the retailer generated gross sales of EUR 34.0 million, exceeding the corresponding prior-year level by 68 percent. Net sales grew by 69 percent to EUR 28.6 million. “Despite the difficult start to the year, Ludwig Beck was able to identify a positive trend with the start of the Easter holidays and the slow return of tourists to downtown Munich and almost achieved sales of a normal year like 2019,” the company announced.
Thanks to the significant growth in sales and the restriction of discounts, the group was also able to improve its results, although it received less government aid than in the same period last year. The deficit before interest and taxes (EBIT) fell from 1.0 to 0.5 million euros, the net loss fell from 1.5 to 0.8 million euros.
In view of the development in the first half of the year, the company stuck to its forecast for the year. For 2022, the management is still expecting gross sales in the range of 85 to 88 million euros and a “slightly positive” result before taxes.
The retailer is assuming that “business will continue to be positive with the Oktoberfest taking place again and unrestricted Christmas business with Christmas markets like before the pandemic”. However, the possible effects of “renewed restrictions due to the Covid 19 pandemic, further negative developments in the war in Ukraine, the persistently rising inflation or further rising energy costs” would be “difficult to assess”, the group admitted.