FY 2023 Results
&
Medium-Term Transformation
Plan 2024-2026
Paris, 12 March 2024
Disclaimer
Forward-looking statements
This presentation contains certain statements that constitute "forward-looking statements", including but not limited to statements that are predictions of or indicate future events, trends, plans or objectives, based on certain assumptions or which do not directly relate to historical or current facts.
Such forward-looking statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the future results expressed, forecast or implied by such forward-looking statements.
Accordingly, no representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved.
Any forward-looking statements included in this presentation speak only as of the date hereof and will not give rise to updates or revision. For a more complete list and description of such risks and uncertainties, refer to Maisons du Monde's filings with the French Autorité des marchés financiers.
2
FY 2023 results & Medium-Term Transformation Plan 2024-2026
Your speakers today
François-Melchior de Polignac
CEO
Denis Lamoureux
CFO
Gilles Lemaire
Deputy CFO
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FY 2023 results & Medium-Term Transformation Plan 2024-2026
Maisonsdu Monde:
The preferred partner for your Inspired, Accessible and Sustainable Home
Love brand with unique assets:
multi-style offer, in-house design expertise, strong network and omnichannel capabilities, ESG leadership
Transformation underway, leveraging | Lack of customer centricity and financial |
the assets, fixing customer centricity | |
discipline in recent years | |
and focusing on cash returns | |
Renewed Management Team and Board,
and a clear plan to restore the power
of the model
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FY 2023 results & Medium-Term Transformation Plan 2024-2026
AGENDA
1.
2.
3.
4.
5.
LOOK BACK AND LEARNINGS
TRANSFORMING OUR COMMERCIAL MODEL
SIMPLIFY AND OPTIMIZE
2024-2026 TRAJECTORY
Q&A SESSION
Maisons du Monde:
A unique set of assets and a diversified business model
1.LOOKBACKANDLEARNINGS
A LOVE BRAND
A WELL-BALANCED MODEL
A LEADING ESG PLAYER
I n s p i r a t i o n
#1 inspirational brand
Source: IPEA Decoration Study 2023
(France)
P a s s i o n a t e e x p e r t s
30 designers
3,000 new products
created in house /year
M d M f a n s
#1 Instagram & Pinterest
communities*
2.6m
followers Instagram (France)
500k
followers Pinterest (France)
* Home & Furniture (France)
O m n i c h a n n e l
Unique omnichannel model
50% | Share |
of digital sales |
C a t e g o r i e s
Decoration & Furniture
58 Share
- of Decoration
G e o g r a p h i e s
Continental Europe
55 Share of sales
- in France
P r o f i t a b i l i t y m o d e l
Best in class gross margin
63% - 65%
E S G e n g a g e m e n t
#2brand committed
to social and/or
environmental causes
Source: Customer survey 2023
(France and Italy)
Good is beautiful 36% products in the
offering
Climate
A List 2023
CDP
(Carbon Disclosure Project)
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FY 2023 results & Medium-Term Transformation Plan 2024-2026
Home & furniture market currently | |||||
experiencing "perfect storm" of macro headwinds… | |||||
1.LOOKBACKANDLEARNINGS | |||||
Market drivers at historical level | |||||
HOME FURNISHING MARKET | |||||
IN A LOW CYCLE IN FRANCE |
GEOPOLITICAL CRISIS ON MULTIPLE FRONTS FUELLINGUNCERTAINTIES
+0%
CAGR 2015-2019
HIGH SAVINGS RATE | UNPRECEDENTED INFLATION |
UNPRECEDENTED IN FRANCE | |
SINCE 1950 | IN LAST THREE DECADES |
-5%
CAGR 2021-2023
Source: EUROMONITOR 2023 (R2015-R2022-F2023)
HOME FURNISHING MARKET/France Constant prices
CONSUMER CONFIDENCE AT
LOWEST LEVELS SINCE THE 70s
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FY 2023 results & Medium-Term Transformation Plan 2024-2026
…revealing a number ofoperational and financial deficiencies 1.LOOKBACKANDLEARNINGS
OPERATIONAL | FINANCIAL |
2021 strategic plan based on overly optimistic growth assumptions post COVID
Primary focus on reported growth at the expense of like-for-likeperformance and value creation
Lack of customer-centricityat time of deep and historic shift in consumer behaviors (e.g. lack of tailored international commercial approach)
Insufficient emphasis on process, store
operations, and execution
(ex. store performance review, P&L ownership)
Oversized investments (Opex/Capex) to support 2021 growth plan
Expansion prioritized over cost control and cash
discipline (ex. peak inventory at 7.2 months in 2022)
Poor assessment of capital allocation decisions
and evaluation of ROCE (e.g. Modani)
Financial oversight systems lacking, leading to persistent guidance misses
Resulting in lack of lucidity and reactiveness throughout the organization
A TACTICAL PLAN RESPONSE LAUNCHED IN Q1 2023
CUSTOMERS - COSTS - CASH
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FY 2023 results & Medium-Term Transformation Plan 2024-2026
3C plan produced first tangible results in 2023 | |||
Partially mitigating revenue loss and initiating a cultural reset | |||
1.LOOKBACKANDLEARNINGS | |||
PUT CUSTOMERFIRST | AGGRESSIVELY REDUCE ALL COSTS CHASE CASH AT ALL LEVELS |
Customer centricity initiatives:
Product availability improvement
Tactical optimization of merchandising
Introduction of a more sophisticated approach
to pricing
Reinforcement of commercial
plan (promotional and non-promotional):
From -11 points gap vs. French retail panel in 2022 to -6 points gap in 2023
All costs and contracts
challenged
HQ reduction: -13% headcount
Worked hours in-storesstreamlined and refocused
Active store network management:
18 net closings o/w 5 transfers to affiliates
All CAPEX challenged with strict payback approach
Intensified scrutiny on all CAPEX allocation decision to achieve overall reduction
Decrease inventory level while
increasing product availability
Sequential sales
improvement H2 vs H1 2023
Gross cost savings | Inventory reduction |
of €35m in 2023 (SG&A and Logistic) | of €43m vs 2022 |
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FY 2023 results & Medium-Term Transformation Plan 2024-2026
FY 2023 EBIT
Pressure on EBIT margin contained despite significant sales decline
EBIT Evolution
(in €m and bps)
68.5
5.5%
+33.2 | 45.8 | |
-50 bps | ||
-160 bps | 4.1% | |
-3.3 | ||
+24.1
+80 bps
-20 bps
-76.7
1.LOOKBACKANDLEARNINGS
Drop in Gross margin due to volume decrease while GM rate remained flat
- Savings from freight rate normalization and positive contribution of Marketplace reinvested in promotion and price accessibility as well as old stock liquidation
Lower logistics costs due to cost optimization initiatives
- Better logistic performance and lower proportion of home delivery vs in-store sales
Store & Central costsreined in
- 3C Plan implementation effect more than compensating for inflation
- Other savings driven by lower volumes and one-off items (e.g. gift cards write-off)
Slight increase in D&A
- Start of amortization of our second distribution center in Northern France
- Capex reduction initiated in 2023, only partially flowing through D&A
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FY 2023 results & Medium-Term Transformation Plan 2024-2026
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Maisons du Monde SA published this content on 12 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 March 2024 08:17:05 UTC.