PARIS (Agefi-Dow Jones)–Furniture and decorative items distributor Maisons du Monde lowered its financial targets for 2022 on Thursday evening, due to disruptions linked to inflation and the evolution of the coronavirus pandemic. Covid-19 in China.
“Inflation in Europe is expected to remain at high levels until the end of the year, which will weigh on the level of consumer confidence and demand in the furniture and decoration sector. “, said Maisons du Monde in a press release. “In this context of high inflation and high volatility, cost projections were underestimated, temporarily impacting the gross margin model,” the group continued.
For Maisons du Monde, the costs of freight, raw materials and energy remain at very high levels “and should not decrease in the short term”, predicts the specialized distributor. “The evolution of the pandemic in China continues to generate major bottlenecks, which generate additional costs and may slow down our resupply plans,” also warned Maisons du Monde.
From now on, the leaders forecast for 2022 a “mid single-digit decline” in turnover, an Ebit margin of “5% or more” and a free cash flow of between 10 and 30 million euros. Ebit corresponds to the gross operating surplus after taking into account allocations to depreciation, provisions and impairments.
For 2022, Maisons du Monde previously anticipated an increase in its turnover, an Ebit margin “around 9%”, as well as a free cash flow of between 65 million and 75 million euros.
Despite the lowering of its financial objectives for 2022, Maisons du Monde still intends to pay in 2023, for the current financial year, between 30% and 40% of its net income in the form of dividends.
The strategic plan unveiled by Maisons du Monde in November 2021 remains “fully valid”, “even if the timetable for achieving the 2025 objectives could be extended”, also warned the Nantes group.
Between 2022 and 2025, Maisons du Monde currently plans to post a “high single-digit” average annual growth rate in its turnover, in order to reach a turnover of more than of 2 billion euros, i.e. revenues of between 1.8 billion and 1.9 billion euros. In terms of profitability, Maisons du Monde expects to achieve an Ebit margin of 11% in 2025 and a cumulative free cash flow of 350 million euros between 2022 and 2025.
-Dimitri Delmond, Agefi-Dow Jones; +33 (0)1 41 27 47 31; [email protected] ed: LBO
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May 27, 2022 01:29 ET (05:29 GMT)