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Hema experiences heavy losses again



Hema, the Dutch warehouse chain, has experienced another disappointing fiscal year first quarter as it reports a loss of €22m.

The chain’s total turnover remained fairly constant at €257m, however the opening of 25 new stores has lowered its turnover per square meter, when compared to the previous year’s first quarter.  This has resulted in a loss of €22m, a 50% increase on last year.

Hema experiences heavy losses again.jpgThe Dutch chain has felt the effects of restructuring costs and high interest rates.  One of its write-offs was €11.1m stated as restructuring costs.  Its main market, Dutch turnover, declined several percentages to €204.4m in sales. This is the first time that the group has revealed quarterly results.  This has been a forced revelation as many of its loans are being traded on the Luxembourg stock exchange.

This is not the first time that Hema has published disappointing results and it has taken steps to cut its costs.  An example of this is that it was considering the cessation of payments for the breaks taken by its Dutch employees, while it has opened new stores abroad in an attempt to experience growth.

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