Q1 2024 REVENUE:
€94.2M, IN LINE WITH EXPECTATIONS
2024 AMBITIONS CONFIRMED
LETTER OF INTENT SIGNED TO ACQUIRE TWO FRANCHISED STORES IN CANADA
Paris, 25 April 2024
ROCHE BOBOIS SA (ISIN: FR0013344173 - Ticker: RBO), the global benchmark in high-end home furnishings and French Art de Vivre, posted revenue of €94.2m in Q1 2024, down 9.4% year-on-year. This performance level aligns with the Group's roadmap for the start of this financial year. As a reminder, for the full financial year 2024, the Group aims to repeat the record performance delivered in 2023, gradually trending upward and with a return to growth in the second half of the year.
Reminder: Roche Bobois communicates both revenue (stemming from effective deliveries by its directly-operated stores and from royalties and commission fees) and retail sales (stemming from pre-tax order intake by the network of directly-operated stores and franchises for its two brands). Retail sales provide an indication of store activity and revenue levels in the coming months.
| Revenue (unaudited - €m) | 2023 | 2024 | Change at current exchange rates (%) | Change at constant exchange rates (%) |
| Q1 | 104.0 | 94.2 | -9.4% | -9.5% |
Detailed information on revenue by region is available in the appendices
Revenue in Q1 2024
Revenue in Q1 2024 stood at €94.2m, down 9.4% at current exchange rates versus Q1 2023. It came out equivalent to Q1 2022, a quarter turning in a good performance. This result was in line with the Group's expectations for the start of 2024[1], on the back of exceptionally high delivery momentum at end-2023 (one-off impact on the order backlog, i.e. €137m at 31 December 2023 vs. €170m a year earlier).
This impact was consistent throughout the Group's regions since the shorter delivery times at end-2023 applied to all territories. In addition, as a reminder, the comparison basis for Q1 2023 was particularly high. As a result, revenue for France and the rest of Europe respectively totalled €27.4m and €22.6m (i.e. -9.7% and -6.4%). The United States/Canada region achieved revenue of €32.1m (-15.5% at current exchange rates and -14.5% at constant exchange rates).
Note that the Cuir Center brand reported double-digit growth (+13.6%) with revenue of €10.1m in Q1 2024 versus €8.9m a year earlier, notably owing to scope effect.
2024 ambitions confirmed: Repeat the exceptional performance of 2023
In first-quarter 2024, the retail sales of directly-operated stores (in terms of order intake for all brands combined) slightly increased (+0.7% at current exchange rates; +0.5% at constant exchange rates) to €170.1m at end-March 2024, propelled by good business momentum in February and March 2024, notably during the "Les Tentations" event.
Moreover, during the first quarter, the order backlog[2] was partly replenished, totalling €154.6m as of 31 March 2024, representing an increase of €17.5m on 31 December 2023.
At end-March 2024, overall retail sales (across all brands, including franchises) amounted to €168.4m versus €176.2m in Q1 2023, slightly down by -4.5% at current exchange rates (-3.5% at constant exchange rates).
In the 2024 financial year, and despite a continued less buoyant market environment, Roche Bobois SA upholds its ambition to show the same record performance as 2023. As announced[3], the Group expects a gradual upward trend in 2024, in anticipation of a slight decline in revenue in the first-half and a return to growth in the second half, with the gradual ramp-up of new stores (including franchise acquisitions) such that they align with the Group's standards.
Further acceleration in the targeted consolidation strategy, with the acquisition of two stores in Canada
In April 2024, Roche Bobois SA signed a letter of intent[4] to acquire a 51% majority interest in Shanghai Rock Castle Furniture, the owner of the Roche Bobois franchise in China, which directly runs 3 stores (1 in Beijing and 2 in Shanghai) and manages 23 franchised outlets. This capital-intensive acquisition, set to take effect in July 2024, is expected to be accretive to the Group's revenue and EBITDA from 2024.
In addition, the Group announced that it signed a second letter of intent to acquire franchised stores in Vancouver and Calgary. Together, in 2023, these stores accounted for retail sales of €3.5m and will further contribute to stepping up the Group's presence in North America, the Group's leading market in revenue and profitability terms. This deal should also be completed by mid-2024.
On the strength of this new acquisition, Roche Bobois SA continues to accelerate in its targeted consolidation strategy within strategic markets, which creates value for the Group both in terms of expected sales and profitability.
Next event: H1 2024 revenue - Thursday 18 July 2024 (after trading)
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CONTACT
Actus Finance - Anne-Pauline Petureaux
Investor relations
Tél.: 01 53 67 36 72 / apetureaux@actus.fr
Actus Finance - Serena BONI
Media Relations
Tél.: 04 72 18 04 92 / sboni@actus.fr
APPENDICES
| Revenues per region and brand (unaudited - €m) | Q1 2023 | Q1 2024 | Change at current exchange rates (%) | Change at constant exchange rates (%) |
| Roche Bobois France | 30.3 | 27.4 | -9.7% | -9.7% |
| Roche Bobois US/Canada | 38.0 | 32.1 | -15.5% | -14.5% |
| Roche Bobois Europe (excluding France) | 24.2 | 22.6 | -6.4% | -8.1% |
| Roche Bobois Other (overseas) | 1.6 | 1.2 | -28.2% | -28.2% |
| Cuir Center | 8.9 | 10.1 | +13.6% | +13.6% |
| Corporate | 1.0 | 0.9 | -15.1% | -15.1% |
| TOTAL | 104.0 | 94.2 | -9.4% | -9.5% |
Reconciliation between Retail sales/Revenue (€m)
| Q1 2024 retail sales | 168.4 |
| Franchise sales volumes | -65.8 |
| Impact of the pace of orders and deliveries | -17.5 |
| Royalties | +2.8 |
| Other services | +6.3 |
| Q1 2024 revenue | 94.2 |
Forward-looking statements
This press release contains forward-looking statements. These statements do not constitute guarantees regarding the future performance of Roche Bobois SA. This forward-looking information covers the future outlook, growth and commercial strategy of Roche Bobois SA and is based on the analysis of future result forecasts and estimates of amounts that cannot yet be determined. By nature, forward-looking information involves risks and uncertainties, as it relates to events and depends on circumstances that may or may not occur in the future. Roche Bobois SA draws your attention to the fact that forward-looking statements provide no guarantee of future performance and that its actual financial position, results and cash flow, as well as changes in the sector in which Roche Bobois operates, may differ significantly from those proposed or suggested by the forward-looking statements contained in this document. Moreover, even if Roche Bobois' financial position, results, cash flow and changes in the sector in which Roche Bobois SA operates were to be in accordance with the forward-looking information contained in this document, these results or changes may not be a reliable indicator of Roche Bobois SA's future results or developments. A description of events that could have a material adverse effect on the business, finances or results of Roche Bobois SA, or on its ability to achieve its objectives, is set out in the "Risk Factors" section of the Universal Registration Document.
GLOSSARY
Current EBITDA: earnings before interest, taxes, depreciation, and amortisation. It designates the Group's pre-tax profit before interest, depreciation and amortisation of fixed assets (but after depreciation of stocks and receivables), store opening costs, expenses for payments in shares, including the associated social charges.
[1] See press release of 28 March 2024
[2] Order backlog for the Group's directly-operated stores (all brands combined) yet to be delivered
[3] See press release of 28 March 2024
[4] See press release of 10 April 2024
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