2022 ESTIMATED PERFORMANCE
Resilient sales in 2022, down by an estimated -1.2% in reported data compared with 2021 and up by +7.0% compared with 2019 pro forma1
Estimated gross margin of 30.3%, up approximately +80 basis points versus 2021, with operational costs under control
Current operating income estimated at close to €230 million, with a resilient current operating margin of nearly 3%
Slightly negative free cash-flow from operations2 impacted by lower sales in December and negative working capital effects; objective of approximately €500 million in cumulative free cash-flow2 extended to 2021–2024 period
In a particularly challenging retail climate, with this key year-end for the Group particularly impacted by heightened pressure on household purchasing power,
The estimated 2022 key figures are as follows:
Estimated and unaudited 2022 figures and reported and audited 2021 figures
(€ millions) | 2022 (estimated data) | 2021 (reported data) |
Revenue | c.7,945 | 8,043 |
Gross margin As a % of revenue | c.2,410 c.30.3% | 2,374 29.5% |
Current operating income | c.230 | 271 |
Current operating margin | c.2.9% | 3.4% |
Free cash-flow from operations2 | c.-30 | 170 |
PRELIMINARY ANALYSIS OF 2022 ESTIMATED PERFORMANCE
- For full-year 2022, the Group’s revenue is expected to total around €7,945 million, an estimated decline of -1.2% on a reported basis and -1.9% on a like-for-like basis3 compared with 2021. This change is mainly due to the approximately -€55 million contraction in sales in December, reflecting lower sales volumes, especially in small domestic appliances and IT equipment – categories which had significantly outperformed in the previous year.
Nevertheless, the Group still managed to post annual sales growth of +7.0% compared to 2019 pro forma4.
Despite an inflationary climate and pressure on purchasing power, the
- The gross margin rate is expected to be 30.3% in 2022, up by approximately +80 basis points compared with 2021, mainly driven by a positive product/service mix effect, with a particularly strong performance in book sales, services including
Darty Max , and ticketing. - Current operating income is estimated at around €230 million. In the second half of 2022, the Group continued to control operating costs in a highly inflationary environment. These costs reflect the reduced sales volumes over the period, higher wage costs, and performance plans that helped to offset the impact of inflation as far as possible. The current operating margin should be virtually unchanged year on year at around 3%.
- Free cash-flow from operations6 is slightly negative at around -30 million. About one third of the variance with the previous year’s free cash-flow reflects a decline in EBITDA, including non-current items. This is in line with the current operating income for the year. In addition, this year, working capital includes reduced cash inflows, which are in line with lower-than-expected sales in December, and more cash outflows early in the year, due to especially robust activity in late 2021. Inventory levels remain healthy and under control, rising only about +€40 million compared with the end of 2021. Lastly, operating investments for 2022 are slightly better than expected, at nearly €130 million.
GROUP OBJECTIVES
When the Group launched its strategic plan Everyday in
After generating free cash-flow from operations6 of €170 million in 2021 and given the level of free cash-flow from operations6 of approximately -€30 million in 2022, the Group considers it unlikely that it will achieve its objective of cumulative free cash-flow from operations6 of approximately €500 million over the 2021–2023 period. As a result, the Group is extending this objective to the 2021–2024 period.
Lastly, the Group remains fully mobilized to keep executing its strategic plan and to continue generating cash so as to ensure growth and regular returns to shareholders in accordance with what was set out as part of the strategic plan Everyday. For these reasons,
IMPORTANT INFORMATION
All figures in this press release that relate to the period from
These estimated financial data were reviewed by the Board of Directors of the Company on
These data are not derived from consolidated financial statements that have been officially approved by the Company’s Board of Directors. The Board of Directors is expected to sign off the accounts on
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WEBCAST TODAY AT 6:30 p.m. (CET)
The webcast will be available at this link: here.
The presentation slides are available in English on the Group website in the Investors section: here.
Listen to the recording at Fnac’s website: https://www.fnacdarty.com/en/.
CONTACTS
ANALYSTS/INVESTORS | stephanie.laval@fnacdarty.com +33 (0)1 55 21 52 53 | |
PRESS | ||
audrey.bouchard@fnacdarty.com +33 (0)6 17 25 03 77 |
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
1 Like-for-like basis: excludes the effect of changes in foreign exchange rates and scope of consolidation, and directly owned-store openings and closures.
2 Excluding IFRS 16.
3 Like-for-like basis: excludes the effect of changes in foreign exchange rates and scope of consolidation, and directly owned-store openings and closures.
4 Including Nature & Découvertes on a full-year basis and excluding BCC.
5 Banque de
6 Excluding IFRS 16.
7 Excluding IFRS 16.
Attachment
- CP_Estimation_2022_Fnac Darty_EN_VDEF
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