Douglas, the Düsseldorf-based beauty retail giant, has announced a €200 million unsecured debt refinancing through a German private placement (Schuldscheindarlehen), with maturities ranging from 3 to 7 years. This move aims to reduce the company’s leverage ratio from 2.8 to 2.0 by the end of the 2024/25 fiscal year.
The funds, sourced from international investors, will be combined with €250 million in operational liquidity to fully repay a €450 million bridge loan established a year ago following Douglas’s listing on the Frankfurt Stock Exchange. By opting for early repayment, the company anticipates interest cost savings of approximately €3.3 million.
Initially targeting €150 million, the private placement was oversubscribed, reaching €200 million, with strong participation from both German and international investors. This refinancing diversifies Douglas’s debt profile and reduces financing costs, supporting the group’s expansion plans.
In the 2023/24 fiscal year, Douglas reported sales of €4.45 billion. The first quarter of 2024/25, ending December 31, saw a 5.8% increase in sales to €1.64 billion, with the French subsidiary Nocibé experiencing a 2.1% rise to €342.2 million. Store sales grew by 5.7% to €1.1 billion, while online sales increased by 6.2% to €545.3 million. The group’s EBITDA rose by 1.5% to €353.5 million, and net profit surged by 30.2% to €160 million during this period.
Implications for the Beauty Retail Industry
Douglas’s proactive debt refinancing and robust financial performance reflect a strategic focus on financial health and operational efficiency. The company’s ability to secure international investor confidence underscores its market position and growth potential. This move highlights a broader industry trend where beauty retailers are strengthening balance sheets to support expansion and innovation in a competitive market. Douglas’s emphasis on reducing leverage and interest costs positions it favourably for future investments and resilience against economic fluctuations.
