2019 ESTIMATED PERFORMANCE
Activity in Q4 2019 impacted by an estimated loss in revenues of around €70 million in December, due to social movements in France
Good resilience of estimated current operating margin and Free Cash Flow
Announcement of the launch of an active search for a partner for operations in the Netherlands
In a particularly difficult context for the retail sector due to major social movements in France in December, Fnac Darty announces an estimate of its sales and results for the 2019 period. The Group is also launching a search for a partner for its operations in the Netherlands.
The estimates of the 2019 key figures for continuing operations would be the following:
Operations in the Netherlands are recognized as discontinued operations, following the application of IFRS 5, unaudited figures.
Enrique Martinez, Chief Executive Officer of Fnac Darty, commented: “For the second year in a row, business in France was impacted by social movements in December, the most critical period for our sector. In 2019, these events will materially impact the Group’s performance. Despite this, thanks to our agility and cost control, our current operating margin should show strong resilience and would reach 4% in 2019 based on our most recent estimates. In addition, I have decided to initiate a search for a partner for our Dutch subsidiary BCC. In 2020, in a remaining uncertain environment, we would target slight growth in our revenues and our current operating income. Lastly, Fnac Darty’s unique assets, its omnichannel platform, its range of products and services, and the quality of its teams, should enable the Group to achieve, in the mid-term, a growth higher than its markets and a current operating margin of 4.5% to 5%.”
Preliminary analyses of 2019 estimated performances - continuing operations
Search for a partner for activities in the Netherlands
Given the efforts made to improve its operational agility and a renewed focus on markets in which the Group has a critical size, Fnac Darty has decided to launch an active search for a partner for its operations in the Netherlands so as to allow its Dutch subsidiary BCC to better seize its market opportunities.
Group’s objectives
In a still uncertain social climate in France, the Group remains cautious about the performance of its markets in 2020, but confirms its ability to outperform their growth and remains focused on cost control.
As a result, the Group would target a slight growth in revenues and current operating income in 2020.
Fnac Darty confirms its mid-term objectives and aims to achieve higher growth than its markets and a current operating margin between 4.5% and 5%.
Important notices
All figures relating to the period from January 1, 2019 to December 31, 2019 presented in this press release are estimated financial data. These estimated financial data have been prepared in accordance with an accounting and consolidation process similar to the process generally used to prepare the consolidated financial statements. However, not all the annual closing procedures have been completed.
These estimated financial data were reviewed by the Board of Directors of the Company on January 16, 2020 and have not been audited by the Company’s statutory auditors.
The final complete consolidated financial statements of the Group, which will be the subject of an audit report by the Company’s statutory auditors, will be published on February 26, 2020 after the stock market closes according to the provisional publication timetable.
CONFERENCE CALL TODAY AT 7 PM
Enrique Martinez, Chief Executive Officer, and Jean-Brieuc Le Tinier, Group Chief Financial Officer, will host a conference call in French (simultaneous translation into English) for investors and analysts today at 7:00 p.m. (CET); 6:00 p.m. (UK) ; 1:00 p.m. (East Coast USA).
Dial-in numbers for conference call in French:
France: + 33 1 70 71 01 59
Access code: 75688753#
Dial-in numbers for conference call simultaneously translated into English
Germany: +49 69 222 225429
UK: +44 20 7194 3759
US: +1 646 722 4916
Access code: 82147285#
Replay dial-in numbers (available until Friday, April 17, 2020)
France: +33 (0)1 72 72 74 02
Replay access code: 418898658#
Germany: +49 211 97190087
UK: +44 20 3364 5147
US: +1 646 722 4969
Replay access code: 418898660#
APPENDICES
Summary of unaudited key figures of continuing operations for 2018
and reminder of reported and audited data for 2018
(€ millions) | 2018 Continuing operations (1) | 2018 reported |
Revenues | 7,132 | 7,475 |
Change on like-for-like basis(2) | +1% | |
Gross margin As a % of revenues | 2,182 30.6% | 2,265 30.3% |
Operating costs | 1,878 | 1,969 |
Current operating income (COI) | 304 | 296 |
Operating margin | 4.2% | 4.0% |
Free Cash Flow(3) | 158 | 153 |
Disclaimer - Forward-looking statements
This release may contain statements concerning the objectives, prospects and areas of development of the Group as well as forward-looking statements. Although these statements are based on data, assumptions and estimates that are considered to be reasonable by Fnac Darty at the date of this press release, Fnac Darty cannot guarantee that the objectives described will be achieved or that the projections will be realized nor that the assumptions made by Fnac Darty will prove to be fair. These statements and projections may change over time as a result of uncertainties relating to the vagaries of any business and to the change in the financial, economic, competitive and regulatory environment in which the Group operates. Fnac Darty makes no undertaking to update or revise the objectives, projections, prospects and forward-looking information contained in this release except pursuant to any legal or regulatory obligation that might apply to it. Fnac Darty cannot guarantee and give an assurance that the objectives described in this press release will be achieved.
CONTACTS
ANALYSTS / INVESTORS | Stéphanie Constand | stephanie.constand@fnacdarty.com +33 (0)1 55 21 18 63 |
Thibault Abeille | thibault.abeille@fnacdarty.com +33 (0)1 55 21 84 41 marina.louvard@fnacdarty.com +33 (0)1 72 28 17 08 | |
Marina Louvard | ||
PRESS | ||
Audrey Bouchard | audrey.bouchard@fnacdarty.com +33 (0)1 55 21 59 25 |
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