Maisons du Monde: Third Quarter 2016 Update

Press Release

Maisons du Monde: Third Quarter 2016 Update

Continued strong performance across all businesses and geographies

Further progress against the Group's omnichannel strategy

Full year 2016 guidance upgraded

 

Nantes, 25 October 2016,

 

Maisons du Monde (Euronext Paris: MDM), a European leader in affordable and inspirational decoration and furniture homeware, today releases its revenues for the third quarter of 2016.

Key highlights

·       Strong Q3 2016 performance: Customer Sales up 25.1% vs. Q3 2015 to €204 million, with like-for-like Customer Sales up 13.6% year-over-year;

·       September YTD 2016 Customer Sales of €594 million (+27.0%), with like-for-like Customer Sales up 15.6%;

o   All Group businesses and geographies reported strong growth;

o   Further progress towards the Group's omnichannel strategy, with the launch of its free in-store delivery service in Italy at the end of September 2016;

o   Good customer reception of the Group's new Autumn-Winter collection, progressively available in stores since mid-August 2016;

o   20 net store added by the end of September 2016, of which 13 stores outside France;

o   Successful opening of the Group's first international franchise in Casablanca, Morocco.

Full year 2016 guidance upgraded

·       As planned in August 2016, Maisons du Monde is now upgrading its guidance for the full year 2016, based on a strong Group performance over the first nine months of the year.

o   Consolidated Customer Sales are expected to grow above 20% compared to 2015, versus circa 15% initially announced at the time of the IPO (range of €800-815 million);

o   Like-for-like Customer Sales are expected to grow above 10% compared to 2015, versus a mid-single-digit growth initial objective;

o   25 net store openings for the full year 2016, versus an initial target of 20 net store openings;

o   Consolidated EBITDA margin is expected to be above 13.5% of Consolidated Customer Sales, versus a margin of 13%+ initially announced at the time of the IPO;

o   Net debt leverage is expected to be around 2.0x at end-December 2016, versus equal to or below 2.25x initially targeted;

o   This 2016 upgrade will be taken into account when we reformulate our guidance for 2017, which will be communicated as part of our 2016 result announcement.

 

At this occasion, Gilles Petit, Chief Executive Officer of Maisons du Monde, stated:

"Maisons du Monde delivered another strong performance in the third quarter of 2016, with double-digit growth across all businesses and geographies. I am especially pleased at how broadly based our performance has been in terms of both Decoration and Furniture as well as in each country where the Group operates. We have continued to successfully implement our omnichannel strategy as planned. Our new collections are also off to a good start.

As announced in August 2016, we are upgrading today our guidance for 2016 on sales, profitability and net debt leverage. We are fully confident that we will deliver on these new objectives."

 

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Q3 2016 Customer Sales

Selected Financial Figures (IFRS - Unaudited)
  Period ended 30 September
(In € million) Q3 2015 Q3 2016 % Growth
Customer Sales by geography    
France106.1128.5 +21.1%
International57.075.6 +32.6%
Total Customer Sales 163.1 204.1 +25.1%
      
Customer Sales by product category     
Decoration86.4108.0 +25.1%
Furniture76.896.1 +25.2%
Total Customer Sales 163.1 204.1 +25.1%
      
Customer Sales by distribution channel     
Stores132.5161.6 +22.0%
Online30.642.5 +38.8%
Total Customer Sales 163.1 204.1 +25.1%

 

9M 2016 Customer Sales

Selected Financial Figures (IFRS - Unaudited)
  Period ended 30 September
(In € million) 9M 2015 9M 2016 % Growth
Customer Sales by geography    
France305.5378.5 +23.9%
International161.9215.2 +32.9%
Total Customer Sales 467.4 593.7 +27.0%
      
Customer Sales by product category     
Decoration244.3310.3 +27.0%
Furniture223.1283.4 +27.0%
Total Customer Sales 467.4 593.7 +27.0%
      
Customer Sales by distribution channel     
Stores381.5474.1 +24.2%
Online85.8119.6 +39.4%
Total Customer Sales 467.4 593.7 +27.0%

 

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Key operating metrics

Maisons du Monde's management uses a number of key operating metrics, in addition to IFRS financial measures, to evaluate, monitor and manage its business. The non-GAAP operational and statistical information related to Group's operations included in this report is unaudited and has been derived from internal reporting systems. Although none of these metrics are measures of financial performance under IFRS, the Group believes that these metrics provide important insight into the operations and strength of its business. These metrics may not be comparable to similar terms used by competitors or other companies. These metrics include the following:

Customer Sales : Represents the revenue from sales of decorative products and furniture through stores, mobile applications and websites, delivery charges and charges to transporters for damaged goods and revenue of Distrimag for logistics services provided to third parties. The Group uses the concept of "Customer Sales", rather than total revenue, for the purpose of calculating like-for-like growth, gross margin, and EBITDA margin.

Like-for-like Customer Sales growth : Represents the percentage change in Customer Sales from the Group's retail stores, online sales platforms and B2B activities, net of product returns between one financial period (n) and the comparable preceding financial period (n-1), excluding changes in Customer Sales attributable to stores that opened or were closed during any of the periods that are being compared. Customer Sales attributable to stores that closed temporarily for refurbishment during any of the periods are included.

Gross margin : Is defined as Customer Sales minus Cost of sales. Gross margin expressed as a percentage of Customer Sales.

EBITDA : Is defined as current operating profit before other operating income and expenses, excluding (i) depreciation, amortization and allowance for provisions and (ii) the change in fair value of its derivative instruments, as well as (iii) pre-IPO management fees paid to the controlling shareholders to cover for management and administrative expenses and (iv) store pre-opening expenses, which relate to expenses incurred prior to the opening of new stores.

EBIT : Is defined as EBITDA after depreciation, amortization and allowance for provisions.

Net financial debt : Corresponds to the Group's Term Loan, RCF, Finance Lease Debt, Deposits and Banks Borrowings, net of cash and cash equivalents.

Leverage ratio : Corresponds to net financial debt divided by EBITDA.

 

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Financial Calendar

7 March 2017 - FY 2016 Results

Contacts

Investor Relations

Laurent Sfaxi - +33 2 51 71 52 07

lsfaxi@maisonsdumonde.com

Press Relations

Stephanie Elbaz (Havas Paris) - +33 1 58 47 97 73

stephanie.elbaz@havasww.com

 

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Warning: 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.

 

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About Maisons du Monde

Maisons du Monde is a creator of inspirational lifestyle universes in the homeware industry, offering distinctive and affordable decoration and furniture collections that showcase multiple styles. The Group develops its business through an integrated and complementary omnichannel approach, leveraging its international network of stores, websites and catalogs. The Group was founded in France in 1996 and has profitably expanded across Europe since 2003. The Group reported €699 million of Customer Sales and EBITDA of €95 million for the year ended December 31, 2015. In 2015, the Group operated 262 stores in seven countries including France, Italy, Spain, Belgium, Germany, Switzerland and Luxembourg and earned over 34% of its sales abroad. Additionally, the Group has introduced a complementary and comprehensive online shopping website, sales of which from 2010 to 2015 grew on average at 36% per year. The website is up and running in eleven countries comprising the seven countries where the Group operates stores plus Austria, the Netherlands, Portugal and the United Kingdom. In 2015 the website accounted for 17% of Group consolidated sales.

www.maisonsdumondeipo.com

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Source: MAISONS DU MONDE via GlobeNewswire

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