Maisons du Monde : Q2 sales and First Half results 2024
PRESS RELEASE
Nantes, le 26 July 2024
Q2 sales and First Half results
2024
Inspire Everyday
plan on track
Q2 activity impacted in June by
macroeconomic uncertainties
Gross margin rises 150 bps, reaching
65.3%
Free Cash Flow nearly stable compared to
H1 2023
-
Gross margin up 150 bps to 65.3%, partially balancing a
-9.6% drop in sales
-
Free Cash Flow nearly stable as expected,
with cost & cash initiatives offsetting a negative
EBIT
-
Adaptation of the store network is
accelerating:
- 5 store openings in H1, including 2
under affiliation
- Renewed concept successfully tested
on 3 pilot stores with double-digit higher performance compared to
the network, rolled out to 17 stores with limited investment, in
line with our agenda to revamp 70 stores in 2024
- Positive results from 5 affiliate
stores in operation for one year, confirming 2024 target of 13
affiliate stores and c.30% of the network under
affiliation/franchise by the end of 2026
- 5 store openings in H1, including 2
under affiliation
-
Optimisation of the operating model showing initial
benefits:
- €20m gross cost savings, confirming
our 3-year commitment of €85m of gross savings
- 15.6% reduction in inventories,
i.e. €188m
- Capex at 1.9% of sales, i.e €9m
François-Melchior de Polignac
commented: “2024 marks a pivotal year in our Inspire
Everyday 2024-2026 journey. The Transformation Plan we presented
earlier this year is now well underway as expected.
The negative EBIT and Net Result realised in the
first half of the year, which we had anticipated, are a consequence
of the strategic investment we are making to positively transform
our business model. By 2026, we intend to emerge stronger than
ever, with an optimized offering, a renewed concept, and an
enhanced store footprint that comprises a significant portion of
affiliate partners.
These actions will stand to elevate our inspiring, accessible,
and sustainable Brand.”
AUDIO WEBCAST FOR
INVESTORS AND ANALYSTS
Date: 26 July 2024 at 6:00 pm CEST / Presentation in English
Webcast connexion:
https://edge.media-server.com/mmc/p/t5d3kju2
Conference call :
https://register.vevent.com/register/BI20bace0b96fc424e818c3c320d377217
SALES PERFORMANCE FOR THE SECOND QUARTER AND THE FIRST
HALF OF 2024
|
|
Q2 2024
|
Q2 2023
|
%
Variation
|
H1 2024 |
H1 2023 |
%
Variation |
|
In € million |
|
|
|
|
GROUP GMV |
275.3 |
303.7 |
-9.4% |
559.6 |
610.8 |
-8.4% |
|
Sales |
243.4 |
269.7 |
-9.7% |
491.1 |
543.4 |
-9.6% |
|
Like for like and excl. UK |
237.0 |
260.2 |
-8.9% |
477.5 |
521.7 |
-8.5% |
|
Sales by product category |
|
|
|
|
|
|
|
Decoration |
115.9 |
133.6 |
-13.2% |
254.0 |
289.3 |
-12.2% |
|
% of sales |
47.6% |
49.5% |
|
51.7% |
53.2% |
|
|
Furniture |
127.5 |
136.1 |
-6.4% |
237.1 |
254.1 |
-6.7% |
|
% of sales |
52.4% |
50.5% |
|
48.3% |
46.8% |
|
|
Sales by channel |
|
|
|
|
|
|
|
Stores |
166.7 |
186.2 |
-10.5% |
343.1 |
382.2 |
-10.3% |
|
% of sales |
68.5% |
69.1% |
|
69.8% |
70.3% |
|
|
Online |
76.7 |
83.4 |
-8.0% |
148.1 |
161.2 |
-8.1% |
|
% of sales |
31.5% |
30.9% |
|
30.2% |
29.7% |
|
|
Sales by geography |
|
|
|
|
|
|
|
France |
130.1 |
143.7 |
-9.5% |
265.7 |
291.6 |
-8.9% |
|
% of sales |
53.4% |
53.3% |
|
54.1% |
53.7% |
|
|
International |
113.3 |
126.0 |
-10.0% |
225.4 |
251.8 |
-10.5% |
|
% of sales |
46.6% |
46.7% |
|
45.9% |
46.3% |
|
Q2 2024 sales details
Q2 2024 Group sales declined by
9.7% compared to the second quarter of 2023 (-8.9% like-for-like
and excluding UK), reflecting a significant drop in consumption in
June 2024 due to current macroeconomic uncertainties.
Online sales reached €76.7
million, down by 8.0% (-7.6% like-for-like and excluding online
activities in the UK which ceased at the end of Q2 2023). The
Marketplace continues to progress positively, especially in Spain,
Italy, and Germany.
Store sales decreased by 10.5%
(-8.8% like-for-like). The three pilot stores that were revamped to
the new concept in Q1 experienced a double-digit increase in sales
this quarter.
Maisons du Monde closed 5 stores including 2
transfers to affiliation. At the end of June 2024, the network
comprises 340 stores, including 7 under affiliation and 3 under
franchise.
Decoration sales fell by 13.2%
to €115.9 million. Furniture sales reached €127.5
million, down by 6.3% compared to Q2 2023.
Geographically, France held up better than
International in April and May, as it did in Q1, before dragging
down the Group average in June due to the specific political
context. This resulted in a -9.3% like-for-like sales decline in
France compared to Q2 2023, while
International sales were down 8.4% (like-for-like
and excluding the UK). Among the top contributing countries, Spain
and Italy were supported by the growth of the marketplace. Germany
shows relative improvement following the rationalization of its
store network from 11 stores on December 31, 2023, to 6 stores on
June 30, 2024.
EBIT
In € million |
H1 2024 |
H1 2023 |
%
Change |
|
Sales |
491.1 |
543.4 |
-9.6% |
|
Cost of goods sold |
(170.4) |
(196.9) |
-13.5% |
|
Gross margin |
320.7 |
346.5 |
-7.4% |
|
As a % of sales |
65.3% |
63.8% |
|
|
Store operating and central costs1 |
(186.9) |
(184.9) |
1.1% |
|
Logistic costs |
(69.8) |
(76.4) |
-8.6% |
|
Operating costs |
(256.7) |
(261.3) |
-1.8% |
|
EBITDA |
64.0 |
85.1 |
-24.8%
|
|
As a % of sales |
13.0% |
15.7% |
|
Depreciaton, amortization, and allowance for provisions |
(69.8) |
(68,8) |
1.5% |
|
EBIT |
(5.8) |
16.3 |
-9.6% |
|
As a % of sales |
(1.2)% |
3.0% |
-13.5% |
Net of price adjustments implemented at the
beginning of the year, Gross margin rate increased
by 150 bps compared to the first half of 2023, reaching 65.3%,
notably thanks to continued favorable effects of reduced freight
costs and the positive contribution of the Marketplace.
Store operating and central
costs amount to €186.9 million, compared to €184.9 million
in the first half of 2023.
Targeted actions on costs have resulted in gross
savings of €20 million across the Group’s operations.
EBITDA margin decreased from
15.7% to 13.0% due to loss in volumes.
Depreciation and Amortization
(D&A) is slightly up, mainly due to the depreciation of the
second distribution center in northern France.
EBIT margin is negative at
(1.2)% compared to 3.0% in the first half of 2023, significantly
impacted by sales decline.
Other non-recurring operating income and
expenses amount to €(8.2) million, compared to €(5.7) million as of
June 30, 2023, mainly related to store closure costs.
Net income amounts to €(24.3)
million compared to €1.0 million as of June 30, 2023 and
includes:
-
Financial result of €(11.5) million, which decreased by €2.9
million, due to losses of €(0.8) million on foreign exchange
operations and an unfavorable effect compared to a gain of €1.3
million as of June 30, 2023.
- An
income tax credit of €7.8 million compared to a tax expense of
€(0.9) million as of June 30, 2023.
FREE CASH FLOW
In € million |
30 June 2024 |
30 June 2023 |
|
EBITDA |
64.0 |
85.1 |
|
Change in working capital |
8.2 |
4.0 |
|
Change in other operating items |
7.3 |
(0.2) |
|
Net cash
generated by operating
activities |
79.5 |
88.9 |
|
Capital expenditures (Capex) |
(9.2) |
(18.0) |
|
Change in debt on fixed assets |
(6.7) |
(6.4) |
|
Proceeds from sale of non-current assets |
0.3 |
0.4 |
|
Decrease in lease debt |
(58.1) |
(55.7) |
|
Decrease in lease debt/Lease interest paid |
(6.7) |
(6.5) |
|
Free cash flow
2 |
(0.9) |
2.7 |
As of June 30, 2024, investments reached €9.2
million, half the amount recorded on June 30, 2023. This resulted
in a Capex-to-sales ratio of 1.9%.
In terms of working capital requirements,
Maisons du Monde reduced its inventory level, reducing them from
€222.8 million on June 30, 2023 to €188.0 million on June 30, 2024,
through rigorous management, reflecting a decrease of 15.6%.
Free cash flow is nearly stable
at €(0.9) million, compared to €2.7 million in June 2023.
NET FINANCIAL DEBT
In € million |
30 June 2024 |
31 December 2023 |
|
Term loan |
75.3 |
100.0 |
|
Revolving Credit Facilities (RCF) |
28.1 |
(1.0) |
|
Share buyback |
- |
- |
|
Other debt |
14.3 |
20.1 |
|
Gross debt |
117.7 |
119.1 |
|
Finance leases |
568.8 |
571.0 |
|
Cash & cash equivalents |
(24.2) |
(29.9) |
|
Net debt (IFRS 16) |
662.3 |
660.2 |
|
Less: Lease debt (IFRS 16) |
(568.8) |
(571.0) |
|
Plus : Lease debt (finance lease) |
0.8 |
1.2 |
|
Net debt |
94.3 |
90.4 |
|
EBITDA restated3 (last twelve months) |
56.7 |
81.3 |
|
Leverage ratio |
1.66x |
1.11x |
Maisons du Monde benefits from a healthy
financial base.
Financial leases decreased by €2.2 million and
do not yet fully reflect the impact of store closures during the
period. The Group is also continuing the renegotiation of leases
with its landlords.
Net financial debt excluding IFRS 16 as of June
30, 2024, amounts to €94.3 million, almost stable compared to
December 31, 2023.
At the end of June 2024, the Group benefits from
€174 million in liquidity and has secured financing from its
banking pool until April 2028.
PRIORITIES OF THE INSPIRE EVERYDAY TRANSFORMATIO PLAN
FOR THE SECOND HALF OF 2024
During the second half, Maisons du Monde will
continue executing its Inspire Everyday transformation plan by
accelerating various initiatives to drive the evolution of its
business model while simultaneously streamlining operations.
These initiatives will contribute to generating
cumulative free cash flow of more than €100 million by 2026.
Disclaimer: Forward Looking
Statement
This press release
contains certain statements that
constitute "forward-looking statements,"
including but not limited to
statements that are predictions of or
indicate future events, trends, plans or objectives, based on
certain assumptions or which do
not directly relate to
historical or current facts.
Such forward-looking statements
are based on management's
current expectations and
beliefs and are subject to
a number of risks and
uncertainties that could cause actual results
to differ materially from the future results expressed, forecasted
or implied by such forward- looking statements.
Accordingly, no representation is made that any of these statements
or forecasts will come to
pass or that any
forecast results will be
achieved. Any forward-looking
statements included in this
press release speak only as
of the date hereof and
will not give rise to
updates or revision. For
a more complete list
and description of such
risks and uncertainties, refer
to Maisons du Monde’s filings
with the French Autorité
des marchés financiers.
Financial calendar
24 October
2024 Q3
2024 Sales
About Maisons du
Monde
Maisons du Monde is the leading player in
inspiring, accessible, and sustainable home and decoration. The
Brand offers a rich and constantly refreshed range of furniture and
decorative items in a multitude of styles. Leveraging a highly
efficient omnichannel model and direct access to consumers, the
Group generates over 50% of its sales through its online platform
and operates in 10 European countries.
corporate.maisonsdumonde.com
Contacts
|
Investor Relations |
Press Relations |
Carole Alexandre
Tel: (+33) 6 30 85 12 78 |
Pierre Barbe
Tel: (+33) 6 23 23 08 51 |
|
calexandre@maisonsdumonde.com |
pbarbe@maisonsdumonde.com
Michelle Kamar
Tel : (+33) 6 09 24 42 42
michelle@source-rp.com |
1 Including Marketing expenses
2 Free Cash Flow defined as Operational cash flow generation after
Capex and excluding financial interests, consistent with historical
financial communication
3 EBITDA of €64 million is restated in accordance with the senior
credit facility agreement dated April 22, 2022
- 2024.07.26 MdM Press Release_H1 2024 Results_EN_FOR
RELEASE
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