Core Insights - The company reported annual results for 2024, achieving net sales of €1.002 billion, reflecting a decrease of 11.2% compared to 2023, attributed to challenging market conditions in the Homes and Decoration sector [5][6][23] - The company generated free cash flow (FCF) of €15 million in 2024, driven by strict control of working capital and cost savings of €45 million, despite a 10.2% decline in like-for-like sales [4][18] - The CEO emphasized ongoing transformation under the "Inspire Everyday" plan, aiming for a return to growth and a cumulative FCF of over €100 million from 2024 to 2026 [3][4] Financial Performance - Group sales for 2024 amounted to €1.002 billion, down from €1.128 billion in 2023, with like-for-like sales decreasing by 10.2% [5][6] - The gross margin improved to 64.0%, up 80 basis points from 2023, due to favorable freight costs and contributions from the Marketplace [12] - The net income for 2024 was -€115.3 million, a significant decline from a profit of €8.8 million in 2023, impacted by an €81 million impairment charge on historical goodwill [15][16] Operational Highlights - The company operated 338 stores at the end of 2024, including 14 managed by affiliates, and revamped 63 stores, with plans to reach a total of 100 revamped stores by the end of 2025 [4][9] - A loyalty program was launched in France in October 2024, and efforts were made to enhance the customer experience, resulting in a 4-point increase in Net Promoter Score (NPS) [4][18] - The company plans to simplify its operating model by reducing its SKU count by approximately 10% and cutting its supplier base by 50% by the end of 2025 [4][18] Debt and Liquidity - As of December 31, 2024, net financial debt excluding IFRS 16 was €85.1 million, a slight decrease from €90.4 million in 2023, with total gross debt at €175.2 million [19][20] - The company had around €200 million in liquidity and secured financing until April 2028, with adjustments to covenants accepted by banking partners [20][21] Future Outlook - The company anticipates visible effects from the "Inspire Everyday" plan in 2025, with a gradual return to growth expected [2][3] - The cost savings target has been increased to over €100 million over three years, with approximately €60 million expected during 2025-2026 [4][18]
MAISONS DU MONDE: ANNUAL RESULTS 2024 IN LINE WITH GUIDANCE: Positive free cash flow / Net Sales € 1.002 billion / Visible effects of Inspire Everyday expected in 2025, with a gradual return to growth