DOUGLAS Group Achieves Major Debt Reduction and Financial Flexibility Enhancement

Douglas AG, a leading omnichannel premium beauty retailer in Europe, has successfully decreased its net debt by 1 billion euros and enhanced its financial flexibility. This significant financial restructuring follows the company's recent initial public offering and additional equity injection. As of the end of 2023, Douglas AG managed to lower its leverage ratio from 4.0x to approximately 2.7x, calculated against adjusted EBITDA.

In a comprehensive refinancing initiative, Douglas has secured new financing totaling 1.6 billion euros. This includes a term loan of 800 million euros and a bridge facility of 450 million euros, alongside a 350 million euros revolving credit facility. These efforts have substantially lowered the interest rates from around 8% to a range between 5.5% and 6.5%, aiming to reduce annual interest costs by up to 100 million euros.

The group reported robust sales growth of 11.5% in the second quarter of the fiscal year 2023/24, driven by significant gains in both store-based sales, which went up by 12.0%, and E-commerce, which saw a 10.7% increase. This progress supports the company's transition towards reducing debt further and its plan to start issuing dividends in the medium term.

Focused on sustainability as part of its business strategy, Douglas has also introduced an ESG Rendezvous-Clause in its financial agreements, linking interest margins to specific sustainability performance indicators, set in consultation with its banking syndicate. This approach underscores Douglas's commitment to integrating ESG factors into its core operations.