SMCP (SMCP) H2 2024 earnings summary

Executive summary

• 2024 was a transitional year with resilient sales, strong cash generation, and significant net debt reduction, despite macroeconomic and geopolitical challenges and network optimization, especially in China.

• Profitability improved in H2, but short-term costs and restructuring, mainly in China, impacted EBIT and net income.

• Sales improved quarter-on-quarter, with Q4 returning to growth, driven by Sandro and Maje, and robust performance outside China.

• Action plans and strict full-price strategy supported margin resilience, with benefits expected to materialize in 2025 and fully in 2026.

Financial highlights

• FY 2024 sales reached €1,212 million, down 1.5% at constant FX and like-for-like; excluding China, sales grew 2.3%.

• Adjusted EBIT was €53 million (4.4% margin), impacted by one-offs and macro factors; H2 EBIT margin at 5.5%.

• Gross margin improved by 0.6 points to 74.4%, reflecting a strict full-price strategy.

• Free cash flow was €49 million, reducing net debt to €237 million.

• Net income was -€24 million, mainly due to €31 million non-recurring impairments; excluding these, net income was €8 million.

Outlook and guidance

• Focus for 2025 is on like-for-like growth, partner channel expansion, and continued network optimization.

• Midterm targets reaffirmed: adjusted EBIT margin of ~10% in H2 2026 and €50 million free cash flow by 2026.

• Margin improvement expected in 2025, with full benefits of action plans in 2026.