Strong sales growth in the first half
Acceleration of the Group’s transformation and strengthening of its multi-specialist profile
- Revenue at €3,284.6 million up +2.6% on a like-for-like basis1, driven by all geographies and rapid digital growth
- Good cost control thanks to the excellent execution of performance plans
- Current operating income of €42.2 million, with a solid gross margin rate of 30.4% despite the technical impact of perimeter effects and product mix
- Strengthening of the financial structure thanks to the success of the bond refinancing
- Current net income2 is at breakeven, excluding exceptional items linked in particular to financing transactions
- Transformation of the Group and strengthening of the multi-specialist profile with the acquisition of Nature & Découvertes, which is being finalized
- Strategic partnership project with CTS Eventim, the European leader in ticketing, allowing Fnac Darty to reassert its leadership in ticketing after the acquisition of BilletReduc.com
Enrique Martinez, Chief Executive Officer of Fnac Darty, declared: “Once again, this semester shows the Group’s commercial agility, with good growth in sales, driven by all geographies as well as digital. In a rapidly changing market, the Group is also accelerating its transformation through structuring projects. The strategic partnership project announced with CTS Eventim, the European leader in ticketing, echoes the acquisition of BilletReduc.com in the first half-year, and demonstrates our commitment to be an active leader in this market. Thanks to the efforts rolled out in the last six months, the Group is perfectly positioned to meet the challenges of the second half, the most important of the year.”
KEY FIGURES
| (€ millions) | H1 2019 | H1 2018 | Change | |
| Revenues | 3,284.6 | 3,199.5 | +2.7% | |
| Change on a like-for-like basis1 | +2.6% | |||
| Current operating income | 42.2 | 45.6 | -€3.4M | |
| Current net income2, Group share | 0.1 | 10.9 | -€10.8M |
HIGHLIGHTS OF THE FIRST HALF OF THE YEAR
Strong sales growth driven by all geographies
Fnac Darty reported revenue of €3,284.6 million, up +2.6% on a like-for-like basis compared with the first half of 2018. This performance is based on the continued development of the Group's omni-channel platform, in a context marked by a 1st quarter still impacted by the “Yellow Vests” movement, in France, which eased during the first half.
Gross margin for the half-year reached €997.0 million, slightly up compared to the first half of 2018. The gross margin rate remains at a high level of 30.4%, despite strong negative impacts due to perimeter effects especially with the franchise development and the partnership with Wehkamp. The small domestic appliances and television segments had a negative impact on the gross margin rate in the half year.
Continued tight control of costs has enabled the Group to post a significant drop of costs as a percentage of sales, down by 60 basis points, despite a highly negative perimeter effect of more than €10 million during the semester, following the integration of WeFix and Wehkamp.
Current operating income stood at €42.2 million, versus €45.6 million the previous year.
Current Net income, Group share totaled €0.1 million in the first half, excluding non-recurring items (€21.5 million) and costs associated with the bond refinancing in May (€27.0 million).
Free cash flow from operations, excluding IFRS 16, totaled -€379.4 million at the end of June 2019, mainly reflecting the seasonal nature of the business.
Analysis of the impact of the transition to IFRS 16
The method used for the application of IFRS 16 is the modified retrospective method. It consists in reintegrating rent commitments into debt, and recognizing in return an asset, called the right of use. As a result, for lease contracts within the scope of IFRS 16, rental expenses are no longer recognized in the income statement, replaced by depreciation and financial charges. The payment of rents is divided between the repayment of the capital of the debt and financial charges. The main impacts of the standard therefore relate to EBITDA, the Group's debt position and the accounting financial expenses associated with this debt.
EBITDA stood at €207.3 million, up by €112.8 million compared to the first half of 2018, of which €116.2 million was linked to the application of IFRS 16. Excluding IFRS 16, EBITDA totaled €91.1 million, compared to €94.5 million the previous year.
At the end of June, the net debt position was €1,387.8 million, compared to €452.1 million excluding IFRS 16.
Finally, the application of IFRS 16 adversely impacts financial costs, in the income statement, for €11.8 million.
Strengthening of the Fnac Darty platform and acceleration of the transformation
In the context of the rollout of Confiance+ plan, the Group continued to open its platform and enhance its ecosystem, through both partnerships and acquisitions. These initiatives demonstrate the momentum of the Fnac Darty transformation and strengthen the Group's multi-specialist profile.
During the half-year, the Group signed an exclusive distribution agreement with Xiaomi for the distribution of its latest smartphone and electric scooter. A first 50-sqm corner dedicated to Xiaomi products was also opened, in a Fnac store.
The partnership with Google continued to bear fruit in the first half, thanks to a stronger offer for connected devices.
The integration of WeFix, a French leader in express smartphone repair, is progressing according to plan, with the aim of doubling the number of repair points. The Group recorded 22 new openings in the half year, which brings the total number of points of sale to 79.
Through its subsidiary France Billet, the Group also completed in the first quarter the acquisition of BilletReduc.com, a specialist in culture and entertainment ticket sales. This acquisition enables the Group to present a wider and more diversified ticket sales offering, by integrating the last-minute market. To continue the development momentum of France Billet, Fnac Darty recently announced the signing of a strategic partnership project with CTS Eventim, the European leader in the ticketing sector. France Billet will be able to count on the technological innovations of CTS Eventim, accelerating the development of its digital platform and allowing it to offer more in terms of value to its customers and partners. CTS Eventim will accordingly include in its offer the distribution of show tickets in France, a leading market in Europe.
The intended strategic partnership would be reinforced with the acquisition by France Billet of a 100% equity stake in the capital of CTS Eventim France. CTS Eventim will acquire a 48% minority stake in France Billet, which will remain under Fnac Darty's control. At the end of a 4-year period, CTS Eventim may increase its shares to a majority stake.
Fnac Darty plans to retain a long-term interest in France Billet, a strategic asset for the Group. France Billet would thus be able to count on the support of Fnac Darty, the European leader in omnichannel retail, and on the expertise of the leading European player in ticketing, representing more than €1 billion in revenue and more than 250 million tickets sold in 2018. This alliance would allow Fnac Darty to strengthen its role as a distributor of show tickets both online and in-store.
This project will first be presented to the employee representative bodies with the aim of finalizing the operation by the end of 2019.
At the same time, Fnac Darty continues its exclusive discussions to acquire Nature & Découvertes, a leader in the omnichannel distribution of natural and well-being products, which should be finalized in the coming weeks. This acquisition will enable the Group to diversify its product offering and strengthen its positioning in responsible consumption, a theme that is becoming increasingly important to consumers. Many areas of cooperation between Fnac Darty and Nature & Découvertes will thus be deployed, in order to enhance the power of the Nature & Découvertes brand, particularly through dedicated corners within Fnac stores in France and abroad. The first “shop-in-shops” could open in France in 2019, and the expansion of the banner internationally could be rolled out rapidly, especially in the Iberian Peninsula.
Strengthening the Group's omnichannel platform
The Group is accelerating the transformation of its digital platforms with the deployment of its Digital Factory project, which aims to increase the agility of IT and business line teams, in order to accelerate production launch times that will facilitate continuous improvement in the customer experience.
E-commerce accounted for more than 19% of the Group’s revenue in the first half, compared to 18% the previous year. The Group recorded double-digit growth in online sales during the half year, driven by the strong momentum of all geographies. The Group is also accelerating on mobile devices, which account for 62% of the traffic on its sites, strongly up this half year. Marketplaces also continued their development with double-digit growth. Omnichannel sales accounted for 49% of online sales, up 2 points compared to the first half of 2018.
The Group continued to strengthen its delivery offering during the first half and generalized its click&collect offer for books, CDs and DVDs, thus offering its customers the option of picking up their purchases within one hour. The entire Fnac network of integrated stores in France has rolled out this new service.
The digitalization of stores continued in the first half with nearly 290 digitalized stores at the end of June 2019. This helps to improve the customer experience thanks to sale support on tablets and the simplified acceptance of payment.
The territorial network has been further expanded with the opening of 32 stores this half-year, 25 of which are franchise stores. The Group opened seven integrated stores, including 5 Fnac and 2 Darty. Fnac opened 15 stores in the first half, including 12 in France, 1 in Portugal, 1 in Luxembourg and 1 in Belgium. Darty opened 17 stores in France. At the end of June 2019, Fnac Darty had a total of 804 stores, including 284 franchises. The expansion momentum will continue in the second half of the year, mainly through the opening of franchise stores. The Group should open close to 60 stores in 2019.
Continued diversification of the offer and support for customers towards an "educated choice"
Diversification categories, mainly Urban Mobility, Games/Toys and Home & Design, posted very strong growth over the first half, with double-digit performance.
The development of the kitchen offering continued with the opening of around ten points of sale during the half year, including 4 stores dedicated exclusively to this offering. At the end of June 2019, the Group had more than 140 kitchen points of sale.
Services continued to grow in the first half of the year, driven by WeFix and advertising businesses.
At the same time, the normalization of telephony/multimedia insurance commissions, and the gradual ramp-up of new offers, had a negative but limited impact on revenue and gross margin growth from the second quarter onwards. These effects are expected to continue during the rest of the year.
Finally, Fnac Darty continues its initiatives to help customers make “educated choices”, by launching the second "after-sales service barometer," which will be renewed every year in order to better inform the public about the lifespan of household appliances and multimedia equipment. The Group also strengthened its commitment to promote products’ sustainability, by creating the “Durable Choice by Darty” and extending the scope of the repairability index to smartphones.
Lastly, the Group asserted its environmental strategy, by setting a quantified objective of reducing its CO2 consumption in France by 50% by 2030, compared to the 2017 level.
HALF-YEAR OPERATING PERFORMANCE AND RESULTS
Analysis of second-quarter revenue
Group sales for the second quarter of 2019 totaled €1,569.6 million, up 3.7% in reported basis, and 3.6% on a like-for-like basis compared with 2018.
In France-Switzerland, revenue was up 2.1% on a like-for-like basis. Sales were boosted by a more buoyant consumer environment this quarter.
The region recorded good growth in household appliances sales, driven by the momentum of sales of air-conditioners and fans, a result of the heat wave in June. However, the small domestic appliances segment was highly competitive.
Consumer electronics were impacted by lackluster television sales, which were affected by the unfavorable base effect due to the 2018 Soccer World Cup. The sound, IT and telephony categories, on the other hand, showed good momentum. Editorial products posted a clear improvement in their performance in the second quarter, after a first quarter impacted by the end of the "Yellow Vests" movement. At the same time, in the services sector, the normalization of telephony/multimedia insurance commissions, and the gradual ramp-up of new offers, had a negative but limited impact on revenue growth from the second quarter onwards. These effects are expected to continue during the rest of the year.
In the Iberian Peninsula, revenue was up +1.7% on a like-for-like basis. Spain showed strong resilience in a context of sluggish consumption and fierce competition. This robust performance can be explained by the quality of commercial execution, and the “premiumization” of the offer, as well as the strengthening of the digital platform's performance.
Portugal continued its steady growth driven by the good performance of e-commerce and the momentum of sales in telephony and books.
In Benelux, sales increased by +14.6% on a like-for-like basis. Belgium posted growth during the quarter, thanks to the performance of household appliances, and despite greater competition from brick & mortar players. Business in the Netherlands was sharply up during the quarter, driven in particular by the success of the partnership with Wehkamp and the continued performance of e-commerce.
Analysis of first-half revenues and results by segment
First-half revenue was €3,284.6 million, up 2.6% on a like-for-like basis compared with 2018.
The first signs of a recovery in consumption in France in the second quarter enabled the France-Switzerland region to reach revenue of €2,524.3 million, up 1.6% on a like-for-like basis. The region’s performance is based on the good momentum of large domestic appliances, IT, telephony and books. The television segment was down due to the unfavorable base effect linked to the 2018 Soccer World Cup.
During the half year, the Group continued to keep its commercial investments and costs under control. Current operating income was down €40.3 million, compared to €46.5 million in the first half of 2018, due to a gross margin rate impacted by the perimeter effect and the product mix.
Sales in the Iberian Peninsula were up in the half year, at +0.5% on a reported basis thanks to a strong sales momentum in the second quarter, after a lackluster first quarter. The digital platforms continued to record solid growth. In Spain, commercial execution remained under good control while competition from brick & mortar players remained fierce. Portugal posted solid performance driven by expansion and services. Operational excellence and cost control significantly increased current operating income by 66% to €5.5 million this half year, compared to €3.3 million in 2018.
Revenues for Benelux grew sharply over the period, +10.6% on a like-for-like basis, driven by the success of the partnership with Wehkamp. E-commerce sites posted double-digit growth in both countries in the region. Despite a negative calendar effect and intense sustained pressure from competitors, Belgium showed solid resilience in its operating performance, particularly in white products. The transformation plan launched for the Fnac banner in the first quarter to boost in-store agility continued.
In the Netherlands, the Group accelerated its digital and operational transformation. Sales posted strong growth during the half year, driven in particular by Wehkamp and the very strong performance of e-commerce. The quality of commercial execution helped to protect margins against a background of intense competition.
As a result, current operating income for Benelux posted growth of +€0.6 million to -€3.6 million.
Analysis of first half results
Gross margin
The gross margin rate remains at a solid level of 30.4% compared to 31.1% in the first half of 2018. The decline is due to the dilutive technical effect linked to the perimeter effects as well as the negative effect related to the small domestic appliance and television segments. Gross margin stood at €997.0 million, compared with €996.4 million in 2018.
Operating costs and results
Operating costs in the first half of 2019 reached €954.8 million versus €950.8 million in the first half of 2018, while the Group experienced a perimeter effect that adversely impacted costs by more than €10 million. This solid performance is based on a rapid and agile rollout of transformation plans, which allowed the Group to post an operating expense ratio of just 29.1% of revenues, down 60bps compared to the previous year.
EBITDA totaled €207.3 million, up by €112.8 million compared to the first half of 2018, of which €116.2 million was linked to the application of IFRS 16. Excluding IFRS 16, EBITDA totaled €91.1 million, compared to €94.5 million the previous year.
Current operating income amounted to €42.2 million, versus €45.6 million the previous year.
Non-recurring items totaled €21.5 million over the half year, of which €5 million was linked to the exceptional bonus (Macron bonus), €4 million related to the Benelux transformation plan, and €9 million related to restructuring, notably at some of Darty's subsidiaries.
Operating income thus amounted to €20.7 million for the first half of the year.
Financial expenses
In the first half of 2019, financial expenses rose €28.9 million to €54.0 million, impacted by the costs related to the refinancing of the bond issue for €27.0 million, as well as the impact linked to the application of IFRS 16 for €11.8 million. The debt restructuring conducted by the Group in the last 18 months will help to reduce financial expenses by roughly €10 million on full-year basis.
Net income
Income tax expense for the half year amounted to €6.6 million. Current Net income, Group share totaled €0.1 million in the first half, excluding non-recurring items (€21.5 million) and excluding costs associated with the bond refinancing in May (€27.0 million). In 2018, Current net income, Group share totaled €10.9 million, excluding non-recurring items (€10.9 million), excluding financial expenses associated with the bank refinancing (€5.9 million) and excluding non-current tax impacts (€8.7 million).
FINANCIAL STRUCTURE
The Group’s net financial debt excluding IFRS 16 stood at €452.1 million as of June 30, 2019. The change in debt results mainly from the negative free cash flow from operations excluding IFRS 16 (-€379.4 million), mainly due to the seasonal nature of the Group's business.
The change compared to 2018 is mainly due to the change in working capital requirements related to the Wehkamp partnership, the franchise development model, the creation of tactical inventories, and the adjustments of payment terms in 2018 in Benelux.
As of June 30, 2019, cash and cash equivalents totaled €475.6 million, and the revolving credit facility of €400 million was undrawn.
In the first half of 2019, Fnac Darty announced the signing of a €100 million credit agreement with the European Investment Bank (EIB) to finance the Group’s digital transformation investments in support of the Confiance+ roll-out.
The Group has received an upgrade of its long-term credit rating to BB+ (stable outlook) from Standard & Poor's and has received a BBB- rating from Scope Ratings. These two ratings are in addition to the Ba2 (stable outlook) rating received from Moody’s.
Given these positive developments, the Group renegotiated its bond issue, improving the terms and extending its maturity. The success of this operation demonstrates the confidence expressed by the financial market in Fnac Darty's strategy.
The debt restructuring conducted in the last 18 months strengthen the Group’s financial structure and will reduce the cost of financial expenses by roughly €10 million on a full year basis.
Finally, Fnac Darty continued to implement its share buyback program in the first half year and bought back and canceled 196,750 shares, representing 0.7% of share capital, for an amount of €14 million.
CONCLUSION AND OUTLOOK
In a still competitive market environment, the Group has once again demonstrated its commercial agility and its business growth capabilities.
For the upcoming major commercial events in the second half of 2019, the Group will stay focused on its commercial execution and cost control. Fnac Darty will also continue to transform its model. The integration of its recent acquisitions, the acceleration on digital and the strengthening of its omnichannel footprint will contribute to strengthening the Group’s operational profile while enabling it to continue the initiatives aimed at offering “educated choices” and improving the customer experience.
The expansion momentum will continue in the second half, mainly through the opening of franchise stores. The Group plans to open close to 60 stores in 2019.
Fnac Darty also confirms its medium-term objectives and aims to achieve higher growth than its markets, and a current operating margin between 4.5% and 5%. These objectives take into account the application of IFRS 16.
HALF-YEAR 2019 RESULTS PRESENTATION
Jean-Brieuc Le Tinier, Group Chief Financial Officer, will host a conference call for investors and analysts on Thursday, July 25, 2019, at 7:00 p.m. (CET); 6:00 p.m. UK); 1:00 p.m. (East Coast USA).
An audio webcast will also be available via this link
A replay will be available on the Group’s corporate website
Conference call dial-in numbers:
France: +33 1 72 72 74 03
Germany: +49 692 22225429
UK: + 44 207 194 3759
US: +1 646 722-4916
Access code: 19308762#
CONTACTS
| ANALYSTS / INVESTORS | Stéphanie Constand | stephanie.constand@fnacdarty.com +33 (0)1 55 21 18 63 |
| Marina Louvard | marina.louvard@fnacdarty.com +33 (0) 1 72 28 17 08 | |
| PRESS | Benjamin Perret | benjamin.perret@fnacdarty.com +33 (0)1 55 21 54 13 |
| Audrey Bouchard | audrey.bouchard@fnacdarty.com +33 (0)1 55 21 59 25 |
APPENDICES
The limited review procedures for the half-year financial statements, approved by the Board of Directors on 25 July 2019, were performed by the statutory auditors. The limited review report is being issued.
The 2019 published data reflects the application of IFRS 16.
SUMMARY INCOME STATEMENT
| (in €m) | H1 20182 | H1 2019 | Change | |||||||
| Revenues | 3,200 | 3,285 | +2.7% | |||||||
| Gross margin | 996 | 997 | +0.1% | |||||||
| As a % of revenues | 31.1% | 30.4% | ||||||||
| Total costs | 951 | 955 | +0.4% | |||||||
| As a % of revenues | 29.7% | 29.1% | ||||||||
| Current operating income | 46 | 42 | -€4M | |||||||
| As a % of revenues | 1.4% | 1.3% | ||||||||
| Other non-current operating income and expenses | -11 | -22 | ||||||||
| Operating income | 35 | 21 | -€14M | |||||||
| Net financial expense | -25 | -54 | ||||||||
| Income tax | -2 | -7 | ||||||||
| Net income from continuing operations for the financial year | 7 | -40 | -€47M | |||||||
| Net income from discontinued operations | 1 | 0 | ||||||||
| Consolidated net income, Group share | 8 | -39 | -€47M | |||||||
| Current net income, Group share | 11 | 0 | -€11M | |||||||
| EBITDA3 | 95 | 207 | +€113M | |||||||
| As a % of revenues | 3.0% | 6.3% | ||||||||
| EBITDA excluding IFRS 16 | 95 | 91 | -€4M | |||||||
CURRENT OPERATING INCOME BY SEGMENT
| (in €m) | H1 2018 | As a % of revenues | H1 2019 | As a % of revenues | Change | |||||||||
| France and Switzerland | 46.5 | 1.9% | 40.3 | 1.6% | -6.2 | |||||||||
| Iberian Peninsula | 3.3 | 1.1% | 5.5 | 1.9% | +2.2 | |||||||||
| Benelux | -4.2 | -1.0% | -3.6 | -0.8% | +0.6 | |||||||||
| Group | 45.6 | 1.4% | 42.2 | 1.3% | -3.4 | |||||||||
NET CURRENT INCOME RECONCILIATION TABLE
| (in €m) | H1 2019 | H1 2018 |
| Net income from continuing operations, Group share | (39.0) | 6.8 |
| APEC Non-current items | 21.5 | 10.9 |
| Non-current financial expenses (bank and bond debts renegotiation) | 27.0 | 5.9 |
| Taxes4 | (9.4) | (12.7) |
| Current net income, Group share | 0.1 | 10.9 |
CASH FLOW STATEMENT
| (in €m) | In €m | ||
| H1 2018 | H1 2019 | ||
| Cash flow from operations before tax, dividends and interest | 78 | 178 | |
| IFRS 16 impact | -117 | ||
| Cash flow from operations before tax, dividends and interest, excluding IFRS 16 | 78 | 61 | |
| Change in working capital requirement, excluding IFRS 16 | -321 | -3765 | |
| Income tax paid | -17 | -15 | |
| Net cash flows from operating activities, excluding IFRS 16 | -260 | -330 | |
| Operating investments | -47 | -55 | |
| Change in debt and receivables relating to non-current assets | 1 | 6 | |
| Operating divestments | 1 | 0 | |
| Net cash flows from operating investment activities | -45 | -49 | |
| Free cash flow from operations, excluding IFRS 16 | -305 | -379 | |
BALANCE SHEET
| Assets (€ millions) | As of December 31, 2018 | As of June 30, 2019 | |
| Goodwill | 1,560 | 1,585 | |
| Intangible non-current assets | 480 | 471 | |
| Tangible non-current assets | 620 | 593 | |
| Rights of use relating to lease agreements | - | 931 | |
| Investments in companies accounted for using the equity method | 20 | 21 | |
| Non-current financial assets | 21 | 24 | |
| Deferred tax assets | 67 | 68 | |
| Other non-current assets | 0 | 0 | |
| Non-current assets | 2,767 | 3,692 | |
| Inventory | 1,092 | 1,067 | |
| Trade receivables | 272 | 176 | |
| Tax receivables due | 42 | 18 | |
| Other current financial assets | 14 | 8 | |
| Other current assets | 406 | 315 | |
| Cash and cash equivalents | 919 | 476 | |
| Current assets | 2,744 | 2,059 | |
| Assets held for sale | 0 | 0 | |
| Total assets | 5,511 | 5,751 | |
| Liabilities (€ millions) | As of December 31, 2018 | As of June 30, 2019 | |
| Share capital | 27 | 27 | |
| Equity-related reserves | 984 | 972 | |
| Translation reserves | (5) | (4) | |
| Other reserves | 247 | 176 | |
| Shareholders' equity, Group share | 1,254 | 1,170 | |
| Shareholders’ equity - Share attributable to non-controlling interests | 8 | 7 | |
| Shareholders’ equity | 1,261 | 1,177 | |
| Long-term borrowings and financial debt | 855 | 854 | |
| Leasing debts with a maturity of over one year | - | 742 | |
| Provisions for pensions and other equivalent benefits | 162 | 202 | |
| Other non-current liabilities | 191 | 175 | |
| Deferred tax liabilities | 190 | 193 | |
| Non-current liabilities | 1,398 | 2,165 | |
| Short-term borrowings and financial debt | 56 | 74 | |
| Leasing debts with a maturity of less than one year | - | 194 | |
| Other current financial liabilities | 16 | 20 | |
| Trade payables | 1,877 | 1,448 | |
| Provisions | 52 | 38 | |
| Tax liabilities payable | 44 | 7 | |
| Other current liabilities | 806 | 628 | |
| Current liabilities | 2,851 | 2,408 | |
| Liabilities relating to assets held for sale | 1 | 1 | |
| Total liabilities | 5,511 | 5,751 |
FIRST HALF 2019 REVENUES
| H1 2019 In €m | Change compared with H1 2018 | ||||
| (in €m) | Actual | at constant exchange rates | like-for-like basis | ||
| France and Switzerland | 2,524 | +1.7% | +1.3% | +1.6% | |
| Iberian Peninsula | 296 | +0.5% | +0.5% | +0.2% | |
| Benelux | 465 | +9.8% | +9.8% | +10.6% | |
| Group | 3,285 | +2.7% | +2.3% | +2.6% | |
2019 SECOND QUARTER REVENUES
| Q2 2019 In €m | Change compared with Q2 2018 | ||||
| (in €m) | Actual | at constant exchange rates | like-for-like basis | ||
| France and Switzerland | 1,206 | +2.2% | +1.7% | +2.1% | |
| Iberian Peninsula | 144 | +2.0% | +2.0% | +1.7% | |
| Benelux | 219 | +14.0% | +14.0% | +14.6% | |
| Group | 1,570 | +3.7% | +3.3% | +3.6% | |
STORE NETWORK
| Dec. 31, 2018 | Opening | Closing | June 30, 2019 | ||
| France and Switzerland6 | 571 | 30 | 6 | 595 | |
| Traditional Fnac | 91 | 1 | 0 | 92 | |
| Suburban Fnac | 14 | 3 | 0 | 17 | |
| Travel Fnac | 24 | 4 | 1 | 27 | |
| Proximity Fnac | 53 | 2 | 0 | 55 | |
| Fnac Connect | 6 | 3 | 0 | 9 | |
| Darty | 382 | 17 | 5 | 394 | |
| Fnac Darty France | 1 | 0 | 0 | 1 | |
| Of which franchised stores | 255 | 25 | 1 | 279 | |
| Iberian Peninsula | 62 | 1 | 1 | 62 | |
| Traditional Fnac | 45 | 0 | 1 | 44 | |
| Travel Fnac | 2 | 0 | 0 | 2 | |
| Proximity Fnac | 13 | 1 | 0 | 14 | |
| Fnac Connect | 2 | 0 | 0 | 2 | |
| Of which franchised stores | 5 | 0 | 0 | 5 | |
| Benelux | 147 | 1 | 1 | 147 | |
| Traditional Fnac | 10 | 1 | 1 | 10 | |
| Proximity Fnac | 1 | 0 | 0 | 1 | |
| Darty | 136 | 0 | 0 | 136 | |
| Fnac Darty Group | 780 | 32 | 8 | 804 | |
| Traditional Fnac | 146 | 2 | 2 | 146 | |
| Suburban Fnac | 14 | 3 | 0 | 17 | |
| Travel Fnac | 26 | 4 | 1 | 29 | |
| Proximity Fnac | 67 | 3 | 0 | 70 | |
| Fnac Connect | 8 | 3 | 0 | 11 | |
| Darty | 518 | 17 | 5 | 530 | |
| Fnac/Darty | 1 | 0 | 0 | 1 | |
| Of which franchised stores | 260 | 25 | 1 | 284 |
DEFINITIONS OF ALTERNATIVE PERFORMANCE INDICATORS
CHANGE IN REVENUES AT CONSTANT EXCHANGE RATES AND COMPARABLE SCOPE OF CONSOLIDATION
The change in revenues at constant exchange rates and comparable scope of consolidation means that the impact of exchange rate fluctuations has been excluded and that the effect of changes in scope is corrected to not take modifications (acquisition, sale of subsidiary) into account. The exchange rate impact is eliminated by recalculating sales for financial year N-1, based on the exchange rates used for financial year N. The revenues of subsidiaries acquired or sold since January 1 of financial year N-1 are excluded from the calculation of the change. This indicator can be used to measure the change in revenues excluding the effects of exchange rates and scopes of consolidation.
CHANGE IN REVENUES (LIKE-FOR-LIKE)
The change in revenues on a like-for-like basis means that the impact of exchange rate fluctuations has been excluded, that the effect of changes in scope has been corrected (acquisition, disposal of subsidiary) and that the effect of directly-owned store openings and closures since January 1 of financial year N-1 has been excluded. This indicator can be used to measure the change in revenue excluding the effects of exchange rates, scopes of consolidation and directly-owned store openings and closings.
EBITDA
EBITDA = Earnings (current operating income) Before Interest, Tax, Depreciation, Amortization and provisions on fixed operational assets.
NET CURRENT INCOME
Net current income refers to the Net earnings, Group share, from activities, restated for the exceptional items of the fiscal year. Restated items include other non-current income and expenses, exceptional items belonging to financial income or tax, and the impact of these items on income tax. This indicator is used to measure the change in net income excluding non-recurring elements which occurred during the fiscal year.
| EBITDA | + Rents within the scope of IFRS 16 = | EBITDA excluding IFRS 16 |
| Current operating income before depreciation, amortization and provisions on fixed operational assets | EBITDA including rental expenses within the scope of IFRS 16 | |
| Free Cash flow from operations | + Disbursement of rents within the scope of IFRS 16 = | Free Cash flow from operations excluding IFRS 16 |
| Net cash provided by operating activities less net operating investments | Free cash flow from operations including cash impacts relating to rents within the scope of IFRS 16 | |
| Net debt | - Rental debt = | Net debt excluding IFRS 16 |
| Gross financial debt less gross cash and cash equivalents | Net financial debt less rental debt | |
| Financial result | - Financial interest on rental debt = | Financial result excluding IFRS 16 |
1 Like-for-like data excludes effect of changes in foreign exchange rates, variations in perimeter, store openings and closings
2 Net Income, Group share, excluding non-recurring items, exceptional costs related to the refinancing bond or bank debt, and non-current tax impacts
2 Data excluding IFRS 16
3 EBITDA = Earnings (current operating income) Before Interest, Tax, Depreciation, Amortization and provisions on fixed operational assets.
4 includes non-recurring income taxes and restatements for income tax effect on non-current item
5 IFRS 16 impact of €5m
6 The France-Switzerland region includes 12 stores abroad: 1 in Luxembourg, 3 in Morocco, 2 in Tunisia, 1 in Congo, 1 in Cameroon, 2 in the Ivory Coast and 2 in Qatar, and 17 stores in the French Overseas Territories.
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