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  ROCHE BOBOIS company press release from 27/07/2018

  27/07/2018 - 18:00

FIRST-HALF 2018 REVENUES UP 5% AT CONSTANT EXCHANGE RATES


Paris, 27 July 2018

ROCHE BOBOIS SA (ISIN: FR0013344173 - Trading symbol: RBO), a global benchmark on the high-end furniture market and the name behind the French Art de Vivre, today announces its revenues and retail sales for H1 2018.

H1 2018 results and highlights

Change in H1 revenues

 Revenues (unaudited - in €m) 2018 2017 Change at current
exchange rates (%)
Change at constant
exchange rates (%)
H1 129.2 126.3 +2.3% +5.0%

The breakdown of H1 2018 revenues by region is presented in the appendix

In the first half of 2018, Group revenues amounted to €129.2 million (compared to €126.3 million in H1 2017), up 5.0% at constant exchange rates (up 2.3% at current exchange rates).

North America (US/Canada) and France posted respective revenue growth of 7.5% and 5.5% versus H1 2017 (at constant exchange rates), benefiting from the positive impact of the contribution from the four owned store openings recorded at the end of 2017 (New York Upper West Side, Miami Design District, Saint Maximin, Nice Cap 3000).

The United Kingdom, a market reeling from the effects of Brexit, fell 6.9% at constant currencies (€7.9 million, i.e. 6% of total revenues in H1 2018).

The rest of Europe recorded a strong performance, posting growth of 8.1% at constant exchange rates.

Retail sales of the owned store and franchise networks [1]

Over the first six months of 2018, the entire Roche Bobois Group network recorded retail sales1 of €234.6 million, compared to €240.2 million in H1 2017, up 0.8% at constant exchange rates (down 2.3% at current rates).

Business activity at constant exchange rates was driven by the development of owned stores, with retail sales up 3.4% over H1 2017, particularly thanks to the latest owned store openings in Europe and the United States, and which outperformed the retail sales posted by franchise stores over the period (down 1.7%).

Ramp-up of store network

In the first half of 2018, the Roche Bobois Group maintained the momentum of store openings, with three net openings during the period:

  • 7 store openings: 6 franchises (Hanoi (Vietnam), Yekaterinburg (Russia), Guangzhou (China), Tokyo 2 (Japan), Kiev 2 (Ukraine) and Cuir Center in Mulhouse), as well as 1 owned store in the United States (Tysons Corner, Virginia) in line with its international development strategy;
  • 4 closures of non-strategic stores in France: 3 franchises (Roche Bobois Belfort, Roche Bobois Perpignan, Cuir Center Perpignan) and 1 Cuir Center owned store (Cuir Center in Marseille La Valentine) in line with the Group's operating plan. Roche Bobois does not foresee any new owned store closures. 

The stores in Tysons Corner (US), Guangzhou (China), Tokyo 2 (Japan) and Kiev 2 (Ukraine) opened in June 2018 and did not contribute to retail sales for H1 2018.

In accordance with Group strategy, presented during its recent IPO, the Group plans to ramp up its owned store openings in higher margin regions, in particular the United States (three new openings planned for H2).

En route to meet 2021 targets

As previously indicated, the Group has launched a new phase in the step-up of its growth and development, and reaffirms the targets announced during its IPO: revenues of €320 million in 2021 and a double-digit underlying EBITDA margin by 2019 with a doubling of the EBITDA margin in France by 2021.

Growth drivers that will help the Group achieve this objective include:

  • an increase in owned store openings abroad, in regions that contribute significantly to Group EBITDA. The Group is planning 39 net openings between 2018 and 2021, 50% of which will be owned stores located in strategic regions such as the US/Canada;
  • an acceleration in franchise takeovers in regions that contribute significantly to Group underlying EBITDA, helping to improve Group profitability over the coming years, with the aim of boosting and stepping up business at these newly integrated stores;
  • additional growth drivers through the ongoing digitisation of sales tools, the launch of e-commerce websites in 2019 and the development of the BtoB market.
About Roche Bobois SA
 
Roche Bobois SA is a French family business founded in 1960. The Group operates in 54 countries and has a network of 329 owned stores and franchises (at 31 december 2017) 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, 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 2017 revenues of €480 million excluding VAT, to which Roche Bobois contributed €388 million and Cuir Center €92 million. Roche Bobois SA consolidated revenues came to €249 million in 2017.
For more information please visit www.bourse-roche-bobois.com
 

 

 
   

 

 
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Investor Relations
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Press Relations
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APPENDICES

Revenues by region and by brand (unaudited - in €m) H1
2018
H1
2017
Change at current exchange rates (%) Change at constant exchange rates (%)
Roche Bobois France 45.2 42.9 +5.5% +5.5%
Roche Bobois US/Canada 30.9 31.3 -1.2% +7.5%
Roche Bobois UK 7.9 8.6 -9.0% -6.9%
Roche Bobois Other Europe 23.3 22.2 +5.3% +8.1%
Roche Bobois other (overseas) 2.1 1.9 +7.9% +7.9%
Cuir Center 18.3 18.0 +1.3% +1.3%
Corporate 1.5 1.4 +3.8% +3.8%
TOTAL 129.2 126.3 +2.3% +5.0%

Forward-looking statements

This press release contains forward-looking statements. These statements do not constitute guarantees regarding the future performance of ROCHE BOBOIS. This forward-looking information covers the future outlook, growth and commercial strategy of ROCHE BOBOIS 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 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 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' future results or developments. A description of events that could have a material adverse impact on ROCHE BOBOIS' business, financial position or results, or on its ability to achieve its targets, is given in Chapter 4 “Risk Factors” of the Base Document.


[1] Orders received excl. VAT throughout owned store network and franchises for both brands