VEOM GROUP: 2023 turnover: EUR 25.0 M, down -11% – Confirmed improvement in the gross margin rates of VEOM Group’s two divisions in 2023 – 02/05/2024 at 6:00 p.m.

• Division
  
  Chacon & DIO Home
  
  : strong base effect at 4
  
  ^th
  
  quarter of 2023 due to the deployment of Security-Video protection products for a European brand in 2022

• Division
  
  Cabasse Audio
  
  : rebound at the end of the year (+7%), with the ramp-up of deliveries under the partnership agreement
  
  branding and acoustic engineering with a large luxury house

Confirmed improvement in gross margin rates of VEOM Group’s two divisions in 2023

VEOM Group (Euronext Growth – FR0013530102 – ALVG)

the leading European group in the world of

Smart Home

(smart home), publishes its consolidated annual turnover for the financial year ending December 31, 2023.

Since 1

^er

January 2023, the Home & Technologies division is included with that of the Chacon & DIO Home division. In 2022, the Home & Technologies division achieved a turnover of €552 thousand.

At 4

^th

quarter of its 2023 financial year, VEOM Group achieved consolidated turnover of €7.3 million, down -19%.

VEOM Group was particularly penalized by the decline of the division

Chacon & DIO Home

which suffered from a significant base effect (reminder: +20% growth in 4

^th

quarter 2022, driven by the launches of new products for

Smart Home

particularly in the field of Security-Video protection in private label (MDD) for a major European brand).

The division

Cabasse Audio

for its part posted growth of +7% in 4

^th

quarter, the largest of its financial year, with a business volume of €3.2 million. The end of the year was notably marked by the first deliveries of high-performance audio solutions as part of the brand partnership and acoustic engineering agreement concluded in 2022 with a major luxury house. A new project to develop another product has also just been launched at the beginning of 2024 with this luxury house.

In a degraded 2023 economic environment, marked by inflationary tensions and a slowdown in attendance and consumption, VEOM Group’s consolidated turnover stood at €25.0 million, down -11%.

Activity for the year 2023 by division

At the end of its 2023 financial year, the division’s activity

Chacon & DIO Home

has, as anticipated, recorded a turnover of €15.7 million, down -13% compared to the 2022 financial year. On a comparable basis, excluding the end of bulb contracts to operators ( 298 K€ for the 2022 financial year), annual turnover is down -12%.

Beyond the demanding base effect at the end of the year for the division (read above), the end of the year was marked by the sharp slowdown in the GSB (DIY Large Stores) market with double-digit declines in sales for certain players in France.

The year 2024 will be marked by the renewal of new home automation ranges, videophones and Video Security cameras, the result of nearly two years of development for the DiO brand.

The division

Cabasse Audio

recorded a consolidated turnover of €9.3 million at the end of the 2023 financial year, an annual decline of -8% compared to the same period last year due to a slowdown sales in the

retail

throughout the year, a degraded economic environment and more careful inventory management by distributors.

The year 2024 will be marked by the release of two new flagship products in the range

Luxury Wireless Audio

including one from 1

^er

semester.

Significant improvement in gross margin rates for both divisions in 2023

Thanks to the acceleration of the marketing of new innovative technological products for

Smart Home

the gross margin rate of the division

Chacon & DIO Home

should be between 39% and 40%, a strong improvement compared to 2022 (36.2%). Despite the current tensions in maritime freight, a further improvement in the division’s gross margin level should be seen in 2024.

Regarding the division

Cabasse Audio

the company confirms its objective of significantly improving its gross margin rate and its gross margin (in value) over the entire 2023 financial year (reminder: €4.0 million gross margin in 2022, i.e. a rate gross margin of 40.0%), driven by sales within the range

Luxury Wireless Audio

the ramp-up of deliveries for the large luxury house and normalized supply costs in 2

^n/a

semester.

After a year 2023 marked by inflationary tensions and a volatile market context, the return to growth in sales of Cabasse Audio in 2024 will be conditioned by a favorable evolution of the economic context, and in particular of consumption in the

retail

.

Financial agenda 2024

These dates are given for information purposes only, they may be modified if necessary. Publications will take place after the close of Euronext markets.

About VEOM Group

VEOM Group is a leading European group in the world of

Smart Home

(Smart Home).

The group is present in the most dynamic segments of the

Smart Home

: luxury high-fidelity audio, under the Cabasse brand, home automation and home comfort solutions, under the Dio brand, and video security equipment and electrical accessories under the Chacon brand.

The group presents a strong complementarity of its brands, technological synergies based on its software platform

Smart Home Business Platform

and a combination of product, industrial, design and commercial know-how, with the ambition of democratizing the smart home among households.

VEOM Group benefits from an established global organization, with a presence in France (Montpellier and Brest), Belgium (Brussels), the United States (Menlo Park) and an industrial subsidiary in Singapore.

VEOM Group has been recognized on several occasions among the hyper-growth French Tech companies.

Label: VEOM Group

ISIN code: FR0013530102

Mnemonic code: ALVG

Number of shares making up the share capital: 2,577,033

More information on VEOMgroup.com

Appendix – Turnover of 4

^th

quarter

Since 1

^er

January 2023, the Home & Technologies division is included with that of the Chacon & DIO Home division. At 4

^th

quarter 2022, the Home & Technologies division achieved a turnover of €82,000.

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