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Online sales reached €76.7 million, down by 8.0% (-7.6% like-for-like and excluding online activities in the UK which ceased at the end of Q2 2023). The Marketplace continues to progress positively, especially in Spain, Italy, and Germany.

Store sales decreased by 10.5% (-8.8% like-for-like). The three pilot stores that were revamped to the new concept in Q1 experienced a double-digit increase in sales this quarter.

Maisons du Monde closed 5 stores including 2 transfers to affiliation. At the end of June 2024, the network comprises 340 stores, including 7 under affiliation and 3 under franchise.

Decoration sales fell by 13.2% to €115.9 million. Furniture sales reached €127.5 million, down by 6.3% compared to Q2 2023.

Geographically, France held up better than International in April and May, as it did in Q1, before dragging down the Group average in June due to the specific political context. This resulted in a -9.3% like-for-like sales decline in France compared to Q2 2023, while International sales were down 8.4% (like-for-like and excluding the UK). Among the top contributing countries, Spain and Italy were supported by the growth of the marketplace. Germany shows relative improvement following the rationalization of its store network from 11 stores on December 31, 2023, to 6 stores on June 30, 2024.

EBIT

Net of price adjustments implemented at the beginning of the year, Gross margin rate increased by 150 bps compared to the first half of 2023, reaching 65.3%, notably thanks to continued favorable effects of reduced freight costs and the positive contribution of the Marketplace.

Store operating and central costs amount to €186.9 million, compared to €184.9 million in the first half of 2023.

Targeted actions on costs have resulted in gross savings of €20 million across the Group’s operations.

EBITDA margin decreased from 15.7% to 13.0% due to loss in volumes.

Depreciation and Amortization (D&A) is slightly up, mainly due to the depreciation of the second distribution center in northern France.

EBIT margin is negative at (1.2)% compared to 3.0% in the first half of 2023, significantly impacted by sales decline.

Other non-recurring operating income and expenses amount to €(8.2) million, compared to €(5.7) million as of June 30, 2023, mainly related to store closure costs.

Net income amounts to €(24.3) million compared to €1.0 million as of June 30, 2023 and includes:

• Financial result of €(11.5) million, which decreased by €2.9 million, due to losses of €(0.8) million on foreign exchange operations and an unfavorable effect compared to a gain of €1.3 million as of June 30, 2023.

• An income tax credit of €7.8 million compared to a tax expense of €(0.9) million as of June 30, 2023.

FREE CASH FLOW

As of June 30, 2024, investments reached €9.2 million, half the amount recorded on June 30, 2023. This resulted in a Capex-to-sales ratio of 1.9%.

In terms of working capital requirements, Maisons du Monde reduced its inventory level, reducing them from €222.8 million on June 30, 2023 to €188.0 million on June 30, 2024, through rigorous management, reflecting a decrease of 15.6%.

Free cash flow is nearly stable at €(0.9) million, compared to €2.7 million in June 2023.

NET FINANCIAL DEBT

Maisons du Monde benefits from a healthy financial base.

Financial leases decreased by €2.2 million and do not yet fully reflect the impact of store closures during the period. The Group is also continuing the renegotiation of leases with its landlords.

Net financial debt excluding IFRS 16 as of June 30, 2024, amounts to €94.3 million, almost stable compared to December 31, 2023.

At the end of June 2024, the Group benefits from €174 million in liquidity and has secured financing from its banking pool until April 2028.

PRIORITIES OF THE INSPIRE EVERYDAY TRANSFORMATIO PLAN FOR THE SECOND HALF OF 2024

During the second half, Maisons du Monde will continue executing its Inspire Everyday transformation plan by accelerating various initiatives to drive the evolution of its business model while simultaneously streamlining operations.

These initiatives will contribute to generating cumulative free cash flow of more than €100 million by 2026.

Disclaimer: Forward Looking Statement

This press release 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, forecasted 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 press release 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.

Financial calendar

24 October 2024        Q3 2024 Sales

About Maisons du Monde

Maisons du Monde is the leading player in inspiring, accessible, and sustainable home and decoration. The Brand offers a rich and constantly refreshed range of furniture and decorative items in a multitude of styles. Leveraging a highly efficient omnichannel model and direct access to consumers, the Group generates over 50% of its sales through its online platform and operates in 10 European countries.

corporate.maisonsdumonde.com

Contacts

1 Including Marketing expenses
2 Free Cash Flow defined as Operational cash flow generation after Capex and excluding financial interests, consistent with historical financial communication
3 EBITDA of €64 million is restated in accordance with the senior credit facility agreement dated April 22, 2022

Attachment

• 2024.07.26 MdM Press Release_H1 2024 Results_EN_FOR RELEASE