Inflation, a thorn in the side of flower merchant Emova Group

The flowers may well leave a few petals there! Thanks to their colors, shimmering or bright, and their scents, flowers, in what they have of reassuring, inspiring and reminder of nature, are often considered as an anti-crisis value. The confinements linked to Covid-19 have reinforced this trend, also driven by the phenomenon of the urban jungle on Instagram. But in the face of galloping inflation and consumer decisions, the appeal of indoor plants (flowers and plants) could fade somewhat. Emova Group, which has just published its half-year results, wants to be cautious for the months to come. The florist, at the head of the Monceau Fleurs, Au Nom de la Rose, Happy, Cœur de Fleurs brands as well as the Bloom’s digital brand, is anticipating a second half down from first-half performance and second-half 2020-2021. ” However, ” the very good performance in the first half and the positive impact of scope effects confirm the objectives for the 2021-2022 financial year “, i.e. a growth “ normalized “of turnover and adjusted gross operating surplus to comparable economic and health situations, assures the group. On the stock market, this reluctance is freshly picked: the title Emova Group yields 4.9%, to 1.36 euro.

Branches

The first half, which runs from September to March, was spared from consumer concerns. The group’s turnover increased by 18% over one year, to 16.9 million euros, benefiting from a positive base effect and a perimeter effect linked to the development in branches. In May 2021, 16 franchises were taken over in branches, eight others were acquired at the start of the year. ” With regard to stores in France, over the next 3 to 4 years, branches could represent up to 25% of business volume “replied the florist when asked about his strategy at the last general meeting. The increase in the share of branches also had a positive effect on the gross operating surplus margin, which rose by more than one point, to 14.2%, at March 31. Operating profit and net profit also increased, from 0.15 million to 0.41 million for the first and from 17,000 to 35,000 euros for the second.