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  GROUPE LDLC company press release from 20/07/2017

  20/07/2017 - 18:00

Q1 2017/2018 business review



REVENUES OF €100.8M

CONTINUED EXPANSION OF STORE NETWORK

CONFIRMED RECOVERY IN BTOB SALES


LDLC Group CEO Olivier de la Clergerie made the following comments: “There were no surprises in this first quarter, in which the ongoing surge in memory component prices continued to disrupt the BtoC business, although this business began to show signs of recovery in May and June. Naturally, highlights include the continued ramp-up of our store network, with four new stores opened since the start of our financial year on 1 April, and the confirmed recovery in our BtoB business, which posted growth per equivalent number of business days. The other high point of the period was the announcement of our plan to acquire the entire share capital of OLYS, the company that markets the BIMP brand. If it goes through, this acquisition will give us two major advantages. It will strengthen our ties with Apple, as well as providing us with know-how gained from over thirty years of grassroots experience in the BtoB and education sectors.”

FIRST QUARTER CONSOLIDATED REVENUES (1 APRIL TO 30 JUNE) – UNAUDITED

 €m 2017/2018 2016/2017 Change (%)
Revenues 100.8 104.2 -3.3%

First quarter figures, corporate data: Q1 revenues amounted to €95.1m compared to €75.1m in the previous year.

As seen towards the end of the last financial year, sales continue to be hit by the worldwide shortage of memory chips, which impacts the prices of memory modules and SSDs in particular. April was a difficult period, with revenues down 9%, while May and June saw the beginnings of an uplift suggesting that the start of the financial year may have been impacted by the economic situation and elections in France.

LDLC Group held up well against this trend, with BtoC revenues totalling €69.6m for the quarter compared to €72.8m in Q1 2016/2017.

The store network, which comprised 24 stores on 30 June 2017, contributed €11.5m to BtoC sales, up 31.3% from last year.

LDLC.pro recorded steady business with revenues of €28.2m versus €28.5m last year. Revenues measured in terms of equivalent business days increased, thus confirming that recovery is underway. July's figures confirm this trend.

Other business including Maginéa posted first quarter revenues of €3.0m, up from €2.9m the previous year.

OUTLOOK

The problems encountered by manufacturers due to the price of memory chips are expected to continue, which will affect High Tech sales in the BtoC segment throughout the first half. However, LDLC Group expects to show continued resilience in face of this trend. Group management will be on the look-out for signs of market recovery as seen in May and June.

In addition, the Group will pursue its business plan by (i) stepping up new store openings (26 stores at present: Vienne and Strasbourg opened since 30 June), (ii) establishing operations in Spain by the end of the 2017/2018 financial year (online and with a pilot store in Barcelona) and (iii) developing the BtoB business by setting up a sales team and delivery warehouse in the Paris area and by acquiring OLYS, the company that owns the BIMP brand (see press release dated 19 June).

LDLC Group has set itself the goal of reaching the billion-euro revenue mark and an EBITDA margin of 5.5%-6.0% by 2021. By that time, the Group plans to have around 100 stores up and running.



Next release:

26 October 2017 after market close, H1 2017/2018 revenues



GROUP OVERVIEW

The LDLC Group was one of the first to venture into online sales in 1997. Today, as an e-commerce leader in the IT and high-tech market, the LDLC Group operates via 12 websites, including 7 commercial sites, serving consumers and professionals alike. The Group employs over 700 people.

Winner of a number of customer service awards and widely recognised for the efficiency of its integrated logistics platforms, the LDLC Group is also developing a network of branch stores and franchises.

Read more at www.groupe-ldlc.com


ACTUS

Investor Relations
Amalia Naveira / Marie-Claude Triquet
anaveira@actus.frmctriquet@actus.fr
Tel.: +33 (0)4 72 18 04 93
 

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  Original Source: GROUPE LDLC