Fnac Darty SA (FRA:1FN) (FY 2024) Earnings Call Highlights: Strong Cash Flow and Strategic ...

In This Article:

  • Revenue: Almost EUR8 billion, up 0.7% on a reported basis and 0.2% on a like-for-like basis.

  • Operating Profit: EUR182 million, in line with the target of at least EUR180 million.

  • Operating Free Cash Flow: EUR195 million, above the target of EUR180 million.

  • Gross Margin: 30.6%, with a service orientation and subscriber base growth.

  • Net Cash Position: EUR224 million at year-end.

  • Dividend Proposal: EUR1 per share, a 55% increase from last year.

  • Omnichannel Sales: Account for 52% of online sales.

  • Subscriber Base: 1.4 million subscribers for services like Darty Max.

  • Store Network: More than 1,500 points of sale after the acquisition of Uni EUR.

  • Leverage Ratio: 1.9 times, adjusted to 1.65 times excluding certain impacts.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Fnac Darty SA (FRA:1FN) achieved solid sales growth and market share gains, driven by strong performance during major commercial events.

  • The company's omnichannel strategy proved successful, with omnichannel sales accounting for 52% of online sales.

  • Subscription services experienced double-digit growth, supporting a customer base of 11 million.

  • The acquisition of UNI EUR in Italy is expected to strengthen Fnac Darty's European leadership and provide growth opportunities.

  • The company maintained strong cash flow generation, exceeding its target with EUR195 million in operating free cash flow.

Negative Points

  • The macroeconomic environment remained lackluster, impacting overall market conditions.

  • The gaming business faced unfavorable impacts, affecting the editorial products category.

  • There was a slight increase in churn for subscription services due to price increases.

  • The Belgian business experienced a goodwill impairment charge of EUR15 million.

  • The exit from the ticketing business is expected to impact recurring operating income by around EUR10 million.

Q & A Highlights

Q: Can Fnac Darty reach 2 million Darty customers in 2025? A: Jean-brieuc Le Tinier, CFO, stated that reaching 2 million customers is a target for 2025. Despite inflation-induced price increases causing some churn, the company remains optimistic due to innovations and new offers.

Q: What are the drivers for the stable margin guidance for 2025, excluding Uni EUR? A: Jean-brieuc Le Tinier, CFO, explained that the exit from the ticketing business, which had a low sales volume but significant impact on operating income, will be offset. The company expects to perform better than in 2024 despite this exit.