(AOF) – After a first half down 2.3%, Fnac Darty sales amounted to 1.84 billion euros in the third quarter of 2023, stable at -0.5% in published data and -0 .1% like-for-like in a market environment still impacted by inflationary pressures. Over the first nine months of the year, the Group’s turnover reached 5.184 billion euros, or -1.8% in published data and -1.5% in comparable data.
The good performance of in-store sales during the period partly offset the decline in digital activity, which represents 21% of the Group’s total sales.
The Group’s gross margin rate increased by +70 basis points in the third quarter and by +40 basis points over the first nine months of the year, excluding the dilutive impact of the franchise.
Fnac Darty announced on September 28 the finalization of the acquisition of 100% of MediaMarkt in Portugal, whose turnover for the 2021-2022 financial year stood at around 140 million euros.
Furthermore, the London Court of Appeal unanimously rejected at the beginning of October the arguments put forward by the opposing party against Darty Holdings SAS, a subsidiary of the Fnac Darty group, in the context of the dispute linked to the sale of Comet Group Limited in 2012.
The distributor of technical equipment/household appliances and cultural products should receive by the end of the year the entire amount initially paid as well as reimbursement of procedural costs incurred and interest, a positive impact on its cash flow estimated at around 130 million euros.
In terms of outlook, Fnac Darty anticipates current operating income for the second half of the year in line with that of last year for the same period. Over the whole of 2023, current operating profit should therefore be around 180 million euros.
Furthermore, the Group recalls that it is still targeting an operational investment envelope for 2023 of around 120 million euros.
Finally, Fnac Darty continues the execution of its Everyday strategic plan with a view to achieving its cumulative free operating cash flow objectives of approximately 500 million euros over the period 2021-2024 and at least 240 million euros. euros on an annual basis from 2025.
“We are successfully continuing the execution of our Everyday strategic plan: we have surpassed the milestone of one million subscribers to Darty Max, our emblematic unlimited repair service and have signed an ambitious agreement with Ceva Logistics, a subsidiary of CMA-CGM, with a view to creating a joint company dedicated to e-commerce logistics. We are approaching the last quarter with confidence but we are more cautious about the rebound in consumption initially anticipated. We are maintaining our efforts to deliver current operating income in the second half of 2023 in line with that of the second half of 2022,” declares Enrique Martinez, Managing Director of Fnac Darty.
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