from ROCHE BOBOIS (EPA:RBO)
Q3 2024 REVENUE: EUR 96.2M (-2.2%) - RETAIL SALES OF DIRECTLY-OPERATED STORES UP +3.4% in Q3 - OUTLOOK CONFIRMED
Paris, 22 October 2024
ROCHE BOBOIS SA (ISIN: FR0013344173 – Ticker: RBO), the global benchmark in high-end furnishings and French Art de Vivre, posted revenue of €96.2m in Q3 2024, slightly down by -2.2% year-on-year at current exchange rates. Nine-months revenue totalled €300.6m, down -6.1% at current exchange rates.
In terms of retail sales, directly-operated stores reported a retail sale of €78.5m in Q3 2024, up +3.4% versus the same period in 2023, thanks to an excellent September observed across all regions (+12.4%) and the consolidation of three formerly franchised stores in China. Over the first nine months of 2024, retail sales of directly-operated stores came to €261.3m, slightly up by +1.0% from the same period one year earlier. Including the order intake of franchised stores, all brands combined, total retail sales stood at €426.6m (-2.5% at current exchange rates and -1.3% at constant exchange rates).
The Group's order backlog to be delivered was €139m at 30 September 2024. With a brisk pace of deliveries expected at year-end, Roche Bobois SA aims to return to growth in Q4 2024. On a full-year basis, the Group confirms its guidance for 2024, namely full-year revenue of around €418m with EBITDA down by around 15-20%, factoring in a more profitable second half than the first.
Note that Roche Bobois communicates both revenue (stemming from effective deliveries by its directly-operated stores and from royalties and commission fees) and retail sales (stemming from pre-tax order intake by the network of directly-operated stores and franchises for its two brands). The retail sales of directly-operated stores account for the main part of sales revenues with a delay of around 3-6 months depending on the region. Any growth in the retail sales of the directly-operated stores therefore has a direct effect on future revenue growth.
| Revenue (unaudited – €m) | 2023 | 2024 | Change at current exchange rates (%) | Change at constant exchange rates (%) |
| H1 | 221.7 | 204.4 | -7.8% | -8.0% |
| Q3 | 98.4 | 96.2 | -2.2% | -1.9% |
| 9 months | 320.1 | 300.6 | -6.1% | -6.2% |
Detailed information on revenue by region is available in the appendices
Revenue in Q3 2024
Revenue in Q3 2024 came to €96.2m, down by a slight -2.2% at current exchange rates versus Q3 2023 (-1.9% at constant exchange rates), reflecting a continuously improved trend since the start of the year.
Revenue for the United States/Canada was almost stable at €35.8m versus the same period one year earlier (-0.6% at current exchange rates and +0.4% at constant exchange rates), including the impact of the extended store scope. Revenue generated in Europe (excluding France) was down -5.4%, notably penalised by Germany, Spain and the United Kingdom while Switzerland and Belgium delivered double-digit growth. Q3 revenue for France declined more significantly (down -14.8% and -6.9% for Roche Bobois and Cuir Center respectively) against an unfavourable economic backdrop. In addition, Overseas revenue saw strong growth in Q3 2024 (€5.7m, i.e., a surge of 237% year-on-year) thanks to the consolidation of 3 stores in China (2 in Beijing and 1 in Shanghai) – effective since July 2024 – and an intermediary activity in the Chinese network of franchises (purchase/resale of goods)[1] which had a positive overall impact of +€3.2m within this region.
Lastly, the Group offset a significant portion of its delayed deliveries following a logistics issue at a supplier in Italy concerning a new fabric (the delay amounted to only €1.2m at 30 September 2024 vs. €5m at 30 June 2024). Roche Bobois is confident it will deliver all the remaining affected orders by year-end.
All told, for the first nine months of the financial year, Roche Bobois reported revenue of €300.6m, down -6.1% at current exchange rates (-6.2% at constant exchange rates).
Retail sales of directly-operated stores up +3.4% in Q3
Despite a global economic backdrop that remains sluggish, retail sales of directly-operated stores were excellent over the period, totalling €78.5m, and up +3.4% year-on-year. This performance results from an excellent September observed across all regions including Cuir Center (up +12.4% in September alone) and the initial impact of the consolidated stores in China and Canada. In Q3 2024, the United States/Canada propelled growth in retail sales of directly-operated stores (+6.6%) while retail sales in France remained stable from Q3 2023. Retail sales in the three Chinese stores in Beijing and Shanghai contributed +€1.1m.
For Q3 2024, overall retail sales (across all brands, including franchises) were stable at €126.7m (+0.1%).
Over the first nine months of the financial year, retail sales of directly-operated stores came to €261.3m, slightly up by +1.0% from the same period one year ago. At end-September 2024, overall retail sales (across all brands, including franchises) amounted to €426.6m, a slight decline of -2.5% at current exchange rates versus end-September 2023
(-1.3% at constant exchange rates).
Outlook confirmed – Return to growth expected in Q4 2024
Over the next quarter, Roche Bobois SA will seek to step up the pace of deliveries for its order backlog (€139m at 30 September 2024, including China) and therefore return to growth in Q4 2024. As a reminder, the Group is aiming for a slight increase in revenue for H2 2024 versus the same period one year earlier.
On a full-year basis in 2024, the Group reaffirms its guidance for revenue of around €418m and a decline in EBITDA of approximately 15-20%, albeit with a more profitable second half than the first.
The Group continues to expand its network of directly-operated stores. In the United States/Canada, following the opening of 2 stores in Toronto (early July 2024) and the acquisition of franchised stores in Calgary and Vancouver (end-June 2024), the Group plans to open a directly-operated store in Montreal-Royal Mount (Canada) within the next few weeks. New development projects are also underway in Las Vegas and Austin (United States). April 2024 saw the Group acquire the Cuir Center in Rouen, France. Parallel to this, 6 franchised stores opened in Casablanca Anfa (Morocco), San José (Costa Rica), Kuala Lumpur (Malaysia), Shijiazhuang, Taiyuan and Wenzhou (China).
In total, at the end of September 2024, Roche Bobois SA had 343 stores, including 267 Roche Bobois stores (127 directly-operated stores and 140 franchised stores) and 76 Cuir Center stores (25 directly-operated stores and 51 franchised stores).
CONTACT
Actus Finance – Anne-Pauline Petureaux
Investor relations
Tel.: +33 (0)1 53 67 36 72 / apetureaux@actus.fr
Actus Finance – Serena Boni
Media relations
Tel.: +33 (0)4 72 18 04 92 / sboni@actus.fr
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APPENDICES
| Revenues per region and brand (unaudited – €m) | Q3 2023 | Q3 2024 | Change at current exchange rates (%) | Change at constant exchange rates (%) |
| Roche Bobois France | 26.4 | 22.5 | -14.8% | -14.8% |
| Roche Bobois US/Canada | 36.1 | 35.8 | -0.6% | +0.4% |
| Roche Bobois Europe (excluding France) | 23.0 | 21.8 | -5.4% | -5.9% |
| Roche Bobois Other (overseas) | 1.7 | 5.7 | +236.6% | +236.3% |
| Cuir Center | 10.3 | 9.6 | -6.9% | -6.9% |
| Corporate | 0.9 | 0.8 | -10.8% | -10.8% |
| TOTAL | 98.4 | 96.2 | -2.2% | -1.9% |
| Revenues per region and brand (unaudited – €m) | 9 months 2023 | 9 months 2024 | Change at current exchange rates (%) | Change at constant exchange rates (%) |
| Roche Bobois France | 90.6 | 83.2 | -8.2% | -8.2% |
| Roche Bobois US/Canada | 110.6 | 102.0 | -7.7% | -7.3% |
| Roche Bobois Europe (excluding France) | 77.5 | 72.7 | -6.2% | -7.2% |
| Roche Bobois Other (overseas) | 5.5 | 9.5 | +72.2% | +72.1% |
| Cuir Center | 32.7 | 30.5 | -6.7% | -6.7% |
| Corporate | 3.1 | 2.7 | -13.3% | -13.3% |
| TOTAL | 320.1 | 300.6 | -6.1% | -6.2% |
Reconciliation between Retail sales/Revenue (€m)
| 9-months 2024 retail sales | 426.6 |
| Franchise retail sales | (165.3) |
| Logistics intermediary activity in China | +1.7 |
| Impact of the pace of orders and deliveries | +5.2 |
| Royalties | +7.8 |
| Other services | +24.7 |
| 9-months 2024 revenue | 300.6 |
Forward-looking statements
This press release contains forward-looking statements. These statements do not constitute guarantees regarding the future performance of ROCHE BOBOIS SA. This forward-looking information covers the future outlook, growth and commercial strategy of ROCHE BOBOIS SA 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 SA 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 SA 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 SA's future results or developments. A description of events that could have a material adverse effect on the business, finances or results of ROCHE BOBOIS SA, or on its ability to achieve its objectives, is set out in the third “Risk Factors” section of the Universal Registration Document (“URD”).
GLOSSARY
EBITDA: earnings before interest, taxes, depreciation, and amortisation. It designates the Group's pre-tax profit before interest, depreciation and amortisation of fixed assets (but after depreciation of stocks and receivables), store opening costs, expenses for payments in shares, including the associated social charges.
[1] Following the acquisition of a 51% stake in Shanghai Rock Castle – see press release of 5 July 2024