Paris, 23 September 2021
ROCHE BOBOIS SA (ISIN: FR0013344173 - Ticker symbol: RBO), a global benchmark on the high-end furniture market and the name behind the French Art de Vivre, today released its H1 2021 results. On 20 September 2021, the ROCHE BOBOIS SA Executive Board approved the half-year financial statements, following a limited review by the statutory auditors.
Although the beginning of 2021 saw continued disruption due to forced store closures (particularly in the UK, Germany, France, Switzerland and Canada), the Group made a fast recovery thanks to the large volume of distance sales generated during the closures and a flood of new orders upon reopening.
With the help of its suppliers, the Group has suffered limited raw material supply problems and is still able to deliver orders within normal lead times or keep delays down to the strict minimum. Accordingly, the outstanding retail sales volumes recorded during H1 2021 confirm the Group's confidence in posting record full-year earnings for 2021 with revenues of over €325 million and strong EBITDA growth.
The trend in orders continued throughout the summer, with total year-to-date retail sales of €409.4 million at the end of August (up 38.3% versus 2020).
2021 also marks the 50th anniversary of Roche Bobois's flagship product, the Mah Jong sofa. To celebrate the occasion, the Mah Jong has been given a facelift with new upholstery from designers including Kenzo Takada, Jean-Paul Gaultier and Missoni Home and elegant pedestals that re-invent and enhance its contours and comfort.
The Group is also investing heavily in the Roche Bobois and Cuir Center websites, soon to be backed by SalesForce™ Commerce Cloud plateform, in order to further improve ergonomics, online product customisation and e-commerce efficiency over the coming months.
|IFRS (€m)||H1 2020||H1 2021||Change |
|Sale of goods||95.3||140.9||+47.8%|
|Royalties and other services||14.2||18.7||+31.7%|
|Gross margin on sales||58.9%||59.4%||+0.5 pp|
|EBITDA margin||14.1%||19.6%||+5.5 pp|
|EBIT before non-recurring items||0.4||13.8||+3,325%|
|Net financial expense||(1.3)||(0.9)||-|
|Net profit/(loss) Group share||(1.1)||9.0||-|
ROCHE BOBOIS SA posted H1 2021 revenues of €159.6 million, a strong increase of 45.6% (49.1% at constant exchange rates) from €109.6 million in H1 2020. Brisk sales were recorded in all regions, particularly the United States and Europe. Revenues were 18.5% up before the covid crisis two years ago.Gross margin was up €27.4 million driven by the sharp increase in volumes, and the gross margin rate increased 0.5 percentage points from 58.9% in H1 2020 to 59.4%, mainly driven by the geographical mix (strong growth in the US/Canada region).
Operating expenses remained under tight control.
Despite the increase in revenues, external expenses fell 1.7% to €34.4 million, close to the H1 2019 level. Although H1 2020 expenses were lower than H1 2021, at €28.7 million, the period was strongly impacted by the health crisis in terms of reductions in local advertising and trade fair conference expenses (€1.4 million) and rent rebate negotiations (€1.1 million).
Staff costs reached €35.0 million, up 49.2% compared to H1 2020 and up 25.2% compared to H1 2019. This change is due to (i) the increase in commissions (variable compensation) due to strong growth in order intake and (ii) the sharp fall in furlough schemes and the related grants used by the Group in H1 2020 (€3.7 million impact in H1 2020). Staff costs also include an expense of €1.2 million related to the bonus share plan (prorated as per vesting periods).
Current EBITDA came to €31.4 million, up 102% compared to H1 2020 (at current and constant exchange rates), mainly driven by Roche Bobois France (€6.2 million), Roche Bobois USA/Canada (€3.9 million) and the Other Europe region (€3.3 million).
The EBITDA margin for H1 2021 was 19.6% at current and constant exchange rates, up 5.5 percentage points compared to H1 2020 and up 4 percentage points compared to H1 2019.
After recognition of depreciation, amortization and impairment charges (€16.3 million), EBIT saw a sharp increase to €13.8 million versus €0.4 million in H1 2020.
After a net financial expense of €0.9 million and a €3.8 million tax charge, the net income came to of €9.0 million for H1 2021.
Tight control of working capital and strong growth in operating cash flow
Group free cash flow increased sharply from €15.7 million in H1 2020 to €31.6 million, up 101.7%.
Working capital was kept under tight control and increased by €8.3 million as against €0.7 million one year ago.
Operating cash flow rose considerably in H1 2021 to €36.3 million, up 133% from €15.6 million in H1 2020, enabling the Group to finance all capital expenditure requirements (€6.8 million), dividend payments (€4.9 million), interest charges (€1.3 million) and purchases of minority interests (€1.3 million) comprising the outstanding portion of the Deco Center 95 acquisition. The Group also fully repaid its €25 million state-guaranteed loan during the period.
Cash and cash equivalents remained very high at €63.7 million at 30 June 2021 compared to €73.3 million at 31 December 2020.
Gross borrowings totalled €26.6 million, down from €48.4 million at 31 December 2020. Lease liabilities, which are exclusively related to the application of IFRS 16, amounted to €136.1 million at 30 June 2021.
Accordingly, net cash (excluding IFRS 16 lease liabilities) amounted to €37.2 million on 30 June 2021, compared to €24.9 million on 31 December 2020.
Ongoing store opening plan
Roche Bobois continued to roll out its international store opening plan by opening three new stores in H1 2020, including one owned store in Leeds Redbrick (UK) and two franchises in Huzhou and Xian (China).
The Group also transferred the Barcelona store to a premium location in the immediate vicinity of Avenida Diagonal.
The Group plans to open an owned store in Monaco by the end of the year. It also plans to carry out two new owned store developments in the United States (Florida and California), with work scheduled towards the end of 2021 and opening due very early in 2022.
The Roche Bobois SA chain comprised 339 stores in 55 countries on 30 June 2021.
€400 million retail sales mark reached at the end of August - 2021 financial guidance
All brands combined, Roche Bobois SA retail sales reached a record €312.2 million in H1 2021, up 50% from €208.0 million in H1 2020 and up 26.9% compared to H1 2019, mainly driven by like-for- like growth across existing stores. Growth was particularly strong in the United States.
The trend remained favourable in July and August. The Group posted total year-to-date retail sales of €409.4 million at the end of August, up 38.3% from €296 million at the same period last year, all brands combined (up 29% compared to H1 2019).
Across the owned store chain, Roche Bobois and Cuir Center posted YTD retail sales of €222.7 million at the end of August, up 41.9% from €157 million in 2020.
Furthermore, total order backlog for all brands at 30 June 2021 amounted to €131.2 million, up 27.4% from €103.0 million on 30 June 2020.
On the light of these factors, the Company remains confident in the 2021 financial year and is now targeting full-year revenues of over €325 million coupled with a strong increase in EBITDA.
Availability of the first half 2021 financial report
Roche Bobois SA hereby announces that it has published and filed its financial report for the six months ended 30 June 2021 with the AMF (French financial markets regulator). This report may be viewed and downloaded from the Roche Bobois website: www.finance-roche-bobois.com
|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 337 owned stores and franchises (at 31 December 2020) 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 2020 revenues of €484.5 million excluding VAT, to which Roche Bobois contributed €392.8 million and Cuir Center €92 million.
Roche Bobois SA 2020 consolidated revenues came to €266.0 million.
For more information please visit www.finance-roche-bobois.com
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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.
EBITDA = earnings before interest, tax, depreciation and amortisation. Underlying EBITDA equals Group pre-tax profit before deduction of interest, depreciation, amortisation and impairment charges on non-current assets, store opening costs and staff share-based payments, but after impairment of inventories and trade receivables. It shows profit generated by business activities regardless of financing conditions, tax constraints and the upgrading of operating assets. Non-recurring expenses (one-off, unusual or infrequent items) are excluded.