Fnac Darty (FNAC) H1 2024 earnings summary

Executive summary

• H1 2024 results showed resilience and effective strategy execution, with all geographies returning to growth in Q2 and performance meeting expectations.

• Technical products, especially those with AI features, and services led growth, while cost control and operational efficiency supported profitability.

• The planned acquisition of Unieuro in Italy is set to boost turnover above €10 billion, expand the store network to over 1,500, and reinforce European leadership.

• Improved ESG ratings and continued commitment to sustainability, now ranked #2 in specialized retail.

Financial highlights

• H1 2024 revenue reached €3.39 billion, up 1.4% year-over-year (+0.1% like-for-like); Q2 revenue was €1.60 billion (+2.1% reported, +0.8% LFL).

• Gross margin stable at 31.0% of revenue, up 10 bps excluding franchise and integration effects.

• Current operating income was -€36 million, stable year-over-year; net income from continuing operations improved to -€73 million from -€134 million in H1 2023.

• Free cash flow from operations (ex-IFRS 16) was -€673 million, reflecting seasonal working capital needs and MediaMarkt integration.

• Dividend of €0.45 per share paid in July 2024, representing a 39% payout ratio of adjusted net profit.

Outlook and guidance

• 2024 guidance confirmed, with current operating profit expected to match or exceed €171 million and cumulative operating free cash flow (ex-IFRS 16) targeted at around €500 million for 2021–2024, with €180 million expected in 2024.

• Anticipates at least €20 million in annual pre-tax synergies from the Unieuro acquisition starting in 2025.

• Volumes recovery and positive impact from innovation launches and key commercial events expected in H2 2024.