Paris, 13 September 2022
ROCHE BOBOIS SA (ISIN: FR0013344173 - Ticker symbol: RBO), global benchmark in the high-end furniture market and the epitome of French Art de Vivre, announces its results for the first half of 2022. The financial statements were approved by the Executive Board on 9 September 2022. The audit is being finalised with reports issued at a later date.
In a less favourable global economic context, the Group delivered a record half-year performance for both sales and earnings, once again demonstrating the strength and resilience of its model and the remarkable appeal of its collections.
Current EBITDA increased significantly to €47.9m (+52.8% vs. H1 2021), representing a current EBITDA margin of 23.6% (+3.9 points vs. H1 2021). This outstanding performance was driven by record high levels in the United States/Canada region (29.1% of EBITDA margin in H1 2022), amplified by a favourable exchange rate effect.
The United States/Canada region has become the leading contributor to Group revenue and consolidated EBITDA margin. Roche Bobois has also just announced its strategic aim to strengthen its regional presence in the United States by exercising its unilateral purchase option to acquire three franchised stores in Atlanta, Houston and Dallas. This acquisition will be accretive for the Group as of next year.
In view of the excellent first-half 2022 results, combined with the level of retail sales and overall order backlog (€178m as of 30 June, 2022), Roche Bobois is targeting revenue in excess of €385m and a strong increase in EBITDA for the 2022 financial year.
|Sales of goods||140.9||179.6||+27.5%|
|Royalties and other services||18.7||23.4||+24.9%|
|Gross margin on sales of goods||59.4%||60.3%||+1.0 pt|
|EBITDA margin||19.6%||23.6%||+3.9 pts|
|EBIT before non-recurring items||13.8||28.1||+104.6%|
|Net financial income/expense||(0.9)||(0.9)||-|
At the end of H1 2022, ROCHE BOBOIS SA posted revenue up significantly by 27.2% to €203.0m vs. €159.6m as of 30 June 2021 (+22.9% at constant exchange rates). This growth was strong across all geographies and particularly the United States/Canada region, the largest contributor to revenue over the half year.
Factoring in the strong increase in volumes and the geographical mix (substantial contribution from the United States/Canada region) combined with a favourable exchange rate effect, in H1 2022, gross margin gained €24.7m in value terms and 1 percentage point to 60.3% vs. 59.4% in H1 2021.
External expenses totalled €44.1m vs. €34.5m in H1 2021; up 28.0%, notably owing to expenses for advertising (+€3.2m) and transport, linked to increased volumes (+€1.9m).
Staff costs amounted to €38.2m in H1 2022 vs. €35.0m, an increase of +9.2% linked to commission on sales (variable remuneration). Note that staff costs also included bonus share plan expenses of €1.2m.
In all, current EBITDA reached a record level of €47.9m vs. €31.4m, representing an increase of 52.8% on H1 2021 at current exchange rates (+47.8% at constant exchange rates). This remarkable performance stemmed from the significant contribution from the United States/Canada region (+€8.9m including a foreign exchange impact of €1.4m), France (+€2.6m) and the United Kingdom (+€1.7m). Note that the United States/Canada region reported a record EBITDA margin level in H1 2022 of 29.1%, vs. 24.1% in H1 2021.
On 30 June 2022, EBITDA margin totalled 23.6%, representing an increase of 3.9 points from 30 June 2021.
After deducting depreciation and amortisation of €18.4m, EBIT surged 104.6% to €28.1m on 30 June 2022, compared to €13.8m on 30 June 2021.
After financial expenses of €0.9m and income tax of €7.1m, net profit amounted to €20.1m on 30 June 2022 vs. €9.0m on 30 June 2021.
Sound and strong financial position
Shareholders' equity totalled €94.8m on 30 June 2022 vs. €72.4m on 30 June 2021.
The Group's healthy operating performance was reflected in gross cash flow before the cost of net financial debt which was up sharply by €16.5m to €48.1m on 30 June 2022 vs. €31.6m on 30 June 2021.
The change in working capital requirement (WCR) was negative at €5.0m on 30 June 2022 vs. €8.3m on 30 June 2021, owing to a one-off increase in inventories awaiting delivery, particularly in the United States, linked to a sharp increase in orders over recent months.
Cash flow from operations totalled €36.6m on 30 June 2022 (vs. €36.3m on 30 June 2021). This high level easily covered investments related to store transfers in Boston (US), Milan (Italy), Madrid (Spain) and openings and renovations (€5.4m); dividend payouts (€9.9m) and interest expenses (€1.4m).
Cash and cash equivalents increased to €87.7m on 30 june 2022 vs. €84.1m on 31 December 2021 (€63.2m on 30 June 2021).
Gross financial debt amounted to €12.9m on 30 June 2022 vs. €16.7m on 31 December 2021. Lease liabilities exclusively related to application of IFRS16 totalled €162.0m as of 30 June 2022.
Net cash (excluding IFRS16 lease liabilities) thus stood at €75.5m at 30 june 2022 vs. €67.6m on 31 December 2021 (€37.2m on 30 June 2021).
Acceleration of international expansion
As part of the international expansion plan, Roche Bobois is considerably strengthening its presence in the United States. The Group has just announced it has exercised its unilateral purchase option to acquire three franchised stores in Atlanta, Houston and Dallas. These new stores will be integrated by end-2022 in addition to the 4 store openings already planned during the financial year: Naples (Florida); Sarasota (Florida); Palm Desert (California), work on which is ongoing, and a new project in Shorthills (New Jersey) scheduled for the second half of the year. All told, Roche Bobois is planning 7 store openings (including acquisitions) in the United States.
As a reminder, Roche Bobois has also opened a directly operated store in Lugano (Switzerland) and three franchises in China (Kunming, Shengyang and Chengdu), confirming its plan to open between five and 10 franchises per year.
2022 guidance: expected revenue in excess of €385m for the financial year and strong increase in EBITDA
As a reminder, Roche Bobois SA posted very high total retail sales (across all brands) of €334.1m on 30 June 2022 vs. €312.2m on 30 June 2021 (+7% growth at current exchange rates and +3.6% at constant exchange rates). Directly-operated stores generated retail sales of €189.0m on 30 June 2022, representing growth of 12.2% vs. 30 June 2021, driven especially by the United States/Canada and Europe regions.
Faced with demanding comparison relative to the summer 2021 period, retail sales for directly-operated stores were down a slight 3.9% over the combined months of July and August 2022, albeit still showing growth of 38.7% compared to summer 2019 (pre-Covid-19 baseline year). On a full scope basis (directly-operated network and franchises), the decline was 7.4% compared with the combined months of July and August 2021, but up 26% from summer 2019.
In this context, which became more demanding over the summer, the Group maintained its growth, reporting total retail sales of €424.2m at end-August 2022 vs. €409.4m at end-August 2021, an increase of 3.6% across all brands. Year-to-date at end-August 2022, based on the scope of directly-operated stores, retail sales for the Roche Bobois and Cuir Center brands totalled €241.2m, vs. €222.7m at end-August 2021, representing growth of 8.3% at current exchange rates (+3.5% at constant exchange rates).
Roche Bobois also notes that across its brands, it has a global order backlog still to be shipped of €178.2m as of 30 June 2022 vs. €131.2m on 30 June 2021. This represents an increase of €47m (€10m of which is a positive foreign exchange effect) and revenues that will be recognised in the second half of 2022.
Very confident in its outlook, the Company announces 2022 guidance for annual revenue in excess of €385m (note that consolidated revenue was €334m in 2021) and a strong increase in EBITDA.
|About ROCHE BOBOIS SA
ROCHE BOBOIS SA is a French family business founded in 1960. The Group operates in 55 countries and has a network of 336 owned stores and franchises (at 30 June 2022) marketing its two brands: Roche Bobois, a high-end furniture brand with a strong international presence, and Cuir Center, positioned in the mid-range market segment with an essentially French customer base. Through its Roche Bobois brand, the Group embodies the French Art de Vivre whose presence can now be felt on the world stage, with original and bold creations from talented designers (Bruno Moinard, Jean Nouvel, Ora Ito, Sacha Lakic, Christophe Delcourt, Stephen Burks, Kenzo Takada, and Bina Baitel) and partnerships with fashion and haute couture houses. Roche Bobois is also a committed partner in the world of culture and the arts. Including franchises, these two brands posted 2021 retail sales of €639.6 million excluding VAT, to which Roche Bobois contributed €532.4 million and Cuir Center €107.2 million.
Roche Bobois SA's consolidated revenue in 2021 was €334 million.
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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 impact on Roche Bobois SA's business, financial position or results, or on its ability to achieve its targets, is included in Chapter 4 “Risk Factors” of the Base Document.
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.
 See press release of 9 September 2022
 Prorated as per vesting periods
 See press release of 9 September 2022
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