SMCP - 2025 FY Results

Core Insights - The company achieved strong profitability improvement and record free cash flow generation, reflecting the effectiveness of its strategic initiatives [1][2] Financial Performance - Sales for FY 2025 reached €1,217.4 million, a 0.5% increase compared to FY 2024 [3] - Adjusted EBITDA rose to €231.3 million, marking a 7% increase from €216.4 million in FY 2024 [3] - Adjusted EBIT surged by 80% to €95.2 million, representing 7.8% of sales, compared to €53 million (4.4% of sales) in FY 2024 [3][16] - Net income improved to €17 million, a €40 million increase from a loss of €24 million in FY 2024 [3][18] - Free cash flow generation reached a record €91 million, up 86% from €49 million in FY 2024 [5] Sales Breakdown - Organic sales growth for 2025 was 1.7% compared to 2024, with significant contributions from the EMEA and American markets [4] - Sales in France decreased by 1.6% organically, impacted by a challenging consumer environment in H2 2025 [6] - EMEA region sales increased by 6.8% organically, driven by strong like-for-like growth [8] - American sales grew by 10.1% organically, despite a high comparison base [10] - Asia Pacific sales fell by 8.8% organically, primarily due to network optimization impacts [12] Strategic Initiatives - The company maintained a strict full-price strategy, resulting in a three-point decrease in the average in-season discount rate to 20% [4] - The network optimization plan led to a reduction of 32 points of sale, with a total of 1,630 points of sale worldwide by the end of 2025 [4][19] - The company plans to enter ten new markets, including regions like the Balkans and South-East Asia, to drive growth [4] Future Guidance - The company aims for an adjusted EBIT margin of approximately 10% in H2 2026 and free cash flow generation of €50 million for the year [21]