Maisons du Monde (MDM) H1 2024 earnings summary

Executive summary

• H1 2024 sales declined 9.6% year-over-year to €491.1 million, impacted by macroeconomic and political uncertainties, especially in June.

• EBIT turned negative at €(5.8) million versus €16.3 million in H1 2023, despite €20 million in gross cost savings and a 150 bps improvement in gross margin rate to 65.3%.

• Free cash flow remained nearly stable at €(0.9) million, supported by inventory optimization and lower capex.

• The 'Inspire Everyday' transformation plan progressed, with 17 stores adopting the new concept and showing double-digit sales growth.

• Brand awareness in France increased by 3 points from 2022 to 2024.

Financial highlights

• H1 2024 sales: €491.1 million, down 9.6% year-over-year; like-for-like sales down 8.5%.

• Gross margin improved to 65.3% of sales, up from 63.8% in H1 2023.

• EBITDA was €64.0 million (13.0% margin), down from €85.1 million (15.7%) in H1 2023.

• Net debt increased to €94.3 million, with leverage at 1.66x LTM EBITDA.

• Free cash flow nearly stable at €(0.9) million, with capex halved year-over-year to €9.2 million (1.9% of sales).

Outlook and guidance

• No significant market improvement expected in H2 2024, barring further political disruptions.

• Targeting €45 million in gross savings for 2024, as part of a €85 million three-year commitment.

• Cumulative free cash flow target of over €100 million for 2024-2026.

• No major change anticipated in gross margin rate for H2 2024.

• H2 2024 priorities include accelerating cost savings, rolling out the renewed store concept, and streamlining operations.