ECOMIAM: Annual results 2021/22 – 01/12/2023 at 7:10 p.m.

• Store sales up 17.9%
  

• Gross commercial margin improved by 3.9 points to 37.7%
  

• Network operating profit, before structural costs, of €3.5 million (+12.7%)
  

• Strengthening of the organization and marketing investments impacting the Group’s profitability in the short term to support growth
  

• Available cash of €6.9 million
  

• Good start to the 2022/23 financial year marked by 21.9% growth in store sales in 1
  
  ^er
  
  quarter illustrating the first effects of the performance optimization plan
  

ecomiam (ISIN code: FR0013534617 – mnemonic: ALECO), French n°3
[1]
specialized distribution of frozen products

publishes its annual results for the 2021/22 financial year (period from 1

^er

October 2021 to September 30, 2022), examined by the Board of Directors at its meeting of January 10, 2023, and its store sales

[2]

from 1

^er

quarter of the 2022/23 financial year.

A growing turnover, confirming the resilience of the model in times of crisis

Over the 2021/22 financial year, in a context of accelerating inflation,

ecomiam

continued its development, confirming the solidity of its concept and the relevance of its commercial strategy in the service of its customers. Thus, store turnover increased by 17.9%, to €37.3 million, thanks to 13 new store openings over the financial year, 69% of which were in new territories.

At constant sales area, store sales were down -12.5% ​​year-on-year, due to a high comparison base in the context of the pandemic, but up +19.3% compared to 2019, confirming the favorable underlying trend.

Consolidated revenue amounted to €38.6 million, up 6.6%, due to a €1.5 million drop in other income (re-invoicing to the network of equipment purchases) linked the lower number of openings over the financial year (13 compared to 29 in 2020/21).

Gross sales margin and network operating income on the rise

As expected and announced,

ecomiam

recorded an improvement in its gross margin over the year, which rose by 3.9 points, to 37.7% of store sales in a context of inflation. The brand thus remains faithful to its fair balance in the sharing of value between producers and consumers while preserving its investment capacity.

The network’s operating income, before structural costs, amounted to €3.5 million for the 2021/22 financial year, up 12.7% over one year, representing a margin rate of 9.3 % (-0.5 points).

ecomiam

had to deal with rising transport costs (+65%), in an inflationary context of fuel costs.

In order to support the dynamics of network deployment,

ecomiam

has intensified its customer loyalty and marketing actions throughout the territory, the full effect of which on operations is expected in the 2022/23 financial year. Communication expenditure has thus been multiplied by 2.5 in one year, while remaining perfectly under control, at 6.6% of store turnover. This proactive policy, in line with the strategy presented at the time of the IPO, weighs temporarily on EBITDA (-€1.6 million) and consolidated operating income (-2.5 million €).

After taking into account deferred tax income, the consolidated net income for the 2021/22 financial year comes to -€2.1 million.

Available cash of €6.9 million after growth investments

During the exercise,

ecomiam

invested part of its available cash, resulting from the capital increase carried out during the IPO, to support the development of its activity (€1.8 million) and strengthen its assets (€0.9 million) while repaying part of its loans (€0.7 million).

Following these growth investments,

ecomiam

has a healthy and robust balance sheet, with shareholders’ equity of €10.3 million, available cash of €6.9 million and gross financial debt of €3.3 million (including €0.6 million in credit- lease and €2.0 million in bank debt over more than one year).

ecomiam

thus has the financial base necessary to finance its development plan.

A good start to the 2022/23 financial year and new levers being rolled out

ecomiam

made a very good start to the 2022/23 financial year, with store sales up 21.9%, to €11.9 million, for the 1

^er

quarter of the 2022/23 financial year (period from 1

^er

October to December 31, 2022). During this period,

ecomiam

continued the rational expansion of its network with the opening of 2 new stores in Brittany (Bain-de-Bretagne) and Occitanie (Cazères) and the closure of a store that did not offer sufficient development prospects in Normandy (Bayeaux).

At constant sales area, store sales increased for the second consecutive quarter and grew by 12.2% benefiting from a 3.4% increase in footfall.

ecomiam

achieved this performance in a national context marked by a contraction in household consumption.

ecomiam

is thus beginning to reap the benefits of its action plan relating to:

• The increase in store traffic, thanks to the growing awareness of the brand and its adequacy with consumer expectations;

• The improvement of the conversion rate, with a particular effort focused on the training of affiliates and the knowledge of customer expectations thanks to the implementation of a CRM data solution;

• Optimization of operating costs in order to be able to maintain an attractive policy and always respectful sharing of value between stakeholders.

The first effects of these actions on operations are expected in the 2022/23 financial year and should allow

ecomiam

to continue its development towards its 2025 ambitions (125 points of sale, €110 million in turnover and €7 million in operating income).

Next communication

• 2nd store turnover
  
  ^th
  
  quarter 2022/23, April 11, 2023 (after market close)

Find all the information on www.ecomiam-bourse.com

About ecomia

Family business created in 2009,

ecomiam

is the first ethical and accessible network for the distribution of essentially unprocessed fresh frozen products and 100% French origin. The network

ecomiam

, made up of 69 points of sale as of December 31, 2022, has a “Click & Collect” offer and an online sales site providing home deliveries within 24/48 hours throughout mainland France. In 2022,

ecomiam

achieved store sales of €37.3 million, up 17.9%.

contacts

[1]

Sources: Xerfi study – March 2021 in number of stores

[2]

Cash outflow from stores, representing more than 95% of consolidated sales

[3]

Restated for communication expenditure now piloted at national level

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