Q1 2024 revenue
Ivry sur Seine – France, April 24, 2024, 5:45 p.m.
CEST
RESILIENT BUSINESS IN Q1
2024
OUTLOOK CONFIRMED
- Q1 2024
revenue of €1,793m, up +0.7% on a reported basis compared
to Q1 2023
- Gross
margin rate up +30 bps compared to Q1 2023, excluding
dilutive impact from franchise
- Successful
omnichannel strategy: Click&Collect represents 51% of online
sales
- Sound
financial structure following the successful bond refinancing, no
major debt repayment due before April 2029
Enrique Martinez, Chief Executive
Officer of Fnac Darty, declared:
“Over this first quarter, the Group demonstrated
the excellent resilience of its business, with stable revenue and
improved gross margin.
In a market with mixed performances, the Group
once again demonstrated the relevance of its sustainable,
omnichannel and service-oriented strategy.
The success of the bond refinancing transaction
reflects the confidence that the markets have in our business model
and the trajectory adopted by the Group.
Fnac Darty and all its employees are now
preparing for the big sports events coming up in the second and
third quarters as well as the peak sales periods at the end of the
year.”
FIRST QUARTER 2024 REVENUE
|
|
|
|
|
Q1 2024 |
Change vs Q1 2023 |
|
|
in €m |
Reported |
Like-for-like basis - LFL1 |
|
France and
Switzerland |
1,456 |
-0.7% |
-0.7% |
|
Iberian
Peninsula |
179 |
+15.5% |
-2.6% |
|
Belgium and
Luxembourg |
159 |
-0.5% |
-0.4% |
|
Group |
1,793 |
+0.7% |
-0.8% |
|
First-quarter sales amounted to €1,793 million,
showing a +0.7% increase in reported basis and a slight decline of
-0.8% on a like-for-like basis1. This occurred in a market
environment where consumer spending did not improve compared to
previous quarters.
The strong in-store sales performance during the
period offset the decrease in digital activity, which accounts for
21% of the Group’s total sales. Omnichannel sales represented 51%
of the total online sales for the first three months of the
year.
Changes by product category
Editorial products showed
contrasting trends. As the market stabilized, the Books segment
posted a strong performance (mainly driven by consumer appetite for
Romance books). As anticipated, the gaming sector was impacted by a
very high comparison base. Services continued to
grow.
Domestic appliances sales
returned to growth after two difficult years. The category
benefitted from the strong performance of small appliances while
large appliances are stabilizing.
Consumer electronics showed
varying trends across segments: audio (primarily headphones) and
photography segments were dynamic; telephony remained stable but
did not compensate for the ongoing decline in hardware. Finally,
the Diversification category was driven by
double-digit growth in the toys and games segment, while urban
mobility declined, mainly as a result of having discontinued
in-store sales of electric bicycles since the beginning of
2024.
Changes by region
Sales in the France and
Switzerland region totaled €1,456 million,
experiencing a slight decline of -0.7% on a like-for-like basis2
compared to the first quarter of 2023. This performance was notably
bolstered by a good momentum in small domestic appliances, the
positive impact of the Pass Culture in France and the continued
development of Services, particularly Darty Max. Nature &
Découvertes activity was almost stable in Q1 2024.
Regarding the Iberian
Peninsula, first-quarter revenue stood at
€179 million, down -2.6% on a like-for-like basis1 and up
+15.5% on a reported basis compared to the first quarter of 2023.
Portugal posted double-digit growth on a reported basis, benefiting
from the activity of the 10 MediaMarkt stores that have been
consolidated since October 1, 2023. Although still declining,
Spain showed sequential improvement throughout the quarter and
returned to growth in March.
For the Belgium and Luxembourg
region, revenue stood at €159 million, virtually unchanged
compared to the first quarter of 2023.
Gross margin rate
Driven primarily by the growing positive impact
of services related to Darty Max, the Group’s gross margin
rate has increased by 10 basis points compared to the
first quarter of 2023. Excluding the dilutive impact of the
franchise, it was up 30 basis points.
FINANCIAL STRUCTURE
On March 19, Fnac Darty successfully carried out
a bond issuance for a total amount of €550 million, maturing
in April 2029, with a fixed annual interest rate of 6.0%. This
operation was favorably received by a diverse base of institutional
investors both in France and internationally, and it was
oversubscribed multiple times.
Taking advantage of a favorable market
environment, Fnac Darty proactively refinanced its entire bond
debt: the €300 million bond with an interest rate of 1.875%,
originally due in May 2024 and the €350 million bond with an
interest rate of 2.625%, originally due in May 2026.
Simultaneously, Fnac Darty obtained approval
from its banks to extend the maturity of its €100 million DDTL
credit line from December 2026 to March 2028, with the addition of
two one-year extension options (exercisable at the request of Fnac
Darty and subject to lender approval) to March 2029 and March
2030.
Additionally, the Group also has an RCF credit
line of €500 million, maturing in March 2028, which can also
be extended until March 2030. As of now, this credit line remains
undrawn.
Through this operation, the Group reduced its
gross debt by €100 million while maintaining a sound level of
liquidity.
Furthermore, in early April 2024 the Group
completed the share buyback program launched in October 2023. A
total of 765,012 shares representing €20 million were acquired
to offset the dilution resulting from the acquisition of free
shares granted to employees.
OUTLOOK
As communicated in February, Fnac Darty confirms
that growth is expected to pick up in 2024, supported by the
declining inflation and savings rate level. Energy costs will
benefit from a favorable comparison base, while rental costs and
wages are expected to rise.
Business activity in the first quarter was
stable compared to previous quarters. The timing of volumes
recovery remains uncertain.
The Group is continuing to have a cautious view
of the economic and geopolitical context, and therefore, at this
stage, reaffirms its target to reach a Current Operating
Income (COI) for 2024 at least equal to that of 2023 and a
cumulative free cash-flow from
operations3 of approximately
€500 million over the period 2021–2024 (i.e.
€180 million in 2024).
***
PRESENTATION OF FIRST QUARTER 2024
REVENUE
Jean-Brieuc Le Tinier, Group Chief
Financial Officer, will host a conference call for
investors and analysts in French, with simultaneous interpretation
into English, on Wednesday April 24, 2024, at 6:30 p.m.
(CEST); 5:30 p.m. (UK); 12:30 p.m. (East Coast USA).
The webcast will be available here.
In FrenchFor people wishing to connect to the
conference call in French and ask questions by phone: France:
+33 1 70 91 87 04In EnglishFor people wishing
to connect to the conference call in English and ask questions by
phone: UK: +44 1 212 818 004 / USA: +1 718 705
8796ReplayYou can listen to a recording of the
presentation at any time, in either French or English, via
www.fnacdarty.com.
FINANCIAL CALENDAR
May 29, 2024: General Meeting
2024July 24, 2024 (after market close): Half-year
results 2024October 23, 2024 (after market close):
Third quarter 2024 revenue
CONTACTS
ANALYSTS/INVESTORSDomitille
Vielle – Head of Investor Relations –
domitille.vielle@fnacdarty.com – +33 (0)6 03 86 05 02Laura Parisot
– Investor Relations Manager – laura.parisot@fnacdarty.com – +33
(0)6 64 74 27 18
PRESSAudrey Bouchard – Head of
Media Relations and Reputation – audrey.bouchard@fnacdarty.com –
+33 (0)6 17 25 03 77
APPENDIX – STORE NETWORK
|
Dec. 31, 2023 |
Opening |
Closure |
Mar. 31, 2024 |
|
France and Switzerland* |
838 |
2 |
1 |
839 |
|
Traditional Fnac |
96 |
0 |
0 |
96 |
|
Suburban Fnac |
17 |
0 |
0 |
17 |
|
Travel Fnac |
37 |
0 |
0 |
37 |
|
Proximity Fnac |
82 |
0 |
0 |
82 |
|
Connect Fnac |
7 |
0 |
0 |
7 |
|
Darty |
492 |
2 |
1 |
493 |
|
Fnac/Darty France |
1 |
0 |
0 |
1 |
|
Nature & Découvertes** |
106 |
0 |
0 |
106 |
|
Of which
franchised stores |
431 |
2 |
1 |
432 |
|
|
|
|
|
|
|
Iberian Peninsula |
88 |
0 |
1 |
87 |
|
Traditional Fnac |
53 |
0 |
0 |
53 |
|
Travel Fnac |
4 |
0 |
0 |
4 |
|
Proximity Fnac |
18 |
0 |
0 |
18 |
|
Connect Fnac |
3 |
0 |
1 |
2 |
|
MediaMarkt Portugal |
10 |
0 |
0 |
10 |
|
Of which
franchised stores |
6 |
0 |
1 |
5 |
|
|
|
|
|
|
|
Belgium and Luxembourg |
84 |
2 |
2 |
84 |
|
Traditional Fnac*** |
12 |
2 |
1 |
13 |
|
Proximity Fnac |
1 |
0 |
0 |
1 |
|
Darty (Vanden Borre) |
71 |
0 |
1 |
70 |
|
|
|
|
|
|
|
Fnac Darty Group |
1,010 |
4 |
4 |
1,010 |
|
Traditional Fnac |
161 |
2 |
1 |
162 |
|
Suburban Fnac |
17 |
0 |
0 |
17 |
|
Travel Fnac |
41 |
0 |
0 |
41 |
|
Proximity Fnac |
101 |
0 |
0 |
101 |
|
Connect Fnac |
10 |
0 |
1 |
9 |
|
Darty/Vanden Borre |
563 |
2 |
2 |
563 |
|
Fnac/Darty |
1 |
0 |
0 |
1 |
|
MediaMarkt |
10 |
0 |
0 |
10 |
|
Nature & Découvertes |
106 |
0 |
0 |
106 |
|
Of which
franchised stores |
437 |
2 |
2 |
437 |
|
* including 13 Fnac stores abroad: 3 in Qatar, 3
in Tunisia, 2 in Senegal, 2 in Ivory Coast, 1 in the Congo, 1 in
Cameroon, 1 in Saudi Arabia and 3 Darty stores abroad in Tunisia;
and including 18 stores in the French overseas territories.
Excluding 17 Fnac shop-in-shops opened in Manor stores.** including
Nature & Découvertes subsidiaries managed from France: 4 stores
in Belgium, 1 store in Luxembourg, 7 franchises in Switzerland, 1
franchise in Portugal and 5 franchises in the French overseas
territories.*** Including one store in Luxembourg, which is managed
from Belgium.
1 Like-for-like basis – LFL: excludes the effect of changes
in foreign exchange rates, changes in scope, and store openings and
closures.2 Like-for-like basis – LFL: excludes the effect of
changes in foreign exchange rates, changes in scope, and store
openings and closures.
3 Excluding IFRS 16.
- 20240424_Fnac_Darty_PR_Q1 2024
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