Maisons du Monde (MDM) H2 2024 earnings summary

Executive summary

• 2024 marked the first year of a comprehensive transformation, emphasizing omnichannel balance, cost control, customer engagement, and operational efficiency amid persistent macroeconomic headwinds.

• Net sales reached €1.002 billion, down 11.2% year-over-year and 10.2% like-for-like, reflecting a challenging home and decoration market.

• Achieved positive free cash flow of €15 million, supported by €45 million in cost savings and disciplined capital allocation.

• Store network reduced to 338, with 63 revamps and a shift toward affiliate/franchise models and new concepts.

• Net income was -€115.3 million, impacted by an €81 million non-cash goodwill impairment and lower sales.

Financial highlights

• Sales declined by €126 million, with total revenue at €1,001.9 million, down 11.2% year-over-year.

• Gross margin improved to 64% of sales (+0.8ppt), maintaining best-in-class levels despite price reductions and promotions.

• EBITDA margin fell to 14.5% from 18.4%; EBIT margin dropped to 0.1% from 4.1%.

• Free cash flow was €15 million, down from €27 million in 2023, driven by working capital improvements.

• Net debt reduced to €85.1 million, with a leverage ratio of 3.81x (up from 1.11x in 2023); liquidity stands at €200 million.

Outlook and guidance

• Management targets a gradual return to growth in 2025, driven by the Inspire Everyday transformation plan and continued focus on free cash flow.

• Cumulative free cash flow of over €100 million targeted for 2024–2026, with €15 million already achieved in 2024.

• Additional €100 million cost savings plan over three years, with capex/sales ratio to remain below 2.5%.

• Plans include new store openings (mainly affiliates/franchises), category extensions, and online experience upgrades.