French furniture business delivers record EBITDA margin

French furniture business Roche Bobois has reported record revenues during 2023 alongside EBITDA margin.

According to its full year results ended 31 December 2023, Roche Bobois SA posted sales of €429.6m, up 5.2%, from €408.6m in 2022.

EBITDA resulted at €90.5m, up 8.8% from €83.2m, with EBITDA margin hitting a new record at 21.1% (up 0.7 points vs 2022). Net income stood at €31.3m, consistent with the previous year.

Commenting on the results, Roche Bobois said: “The Group posted very solid results at the end of fiscal 2023, once again demonstrating its resilience in a tougher market environment.

“At regional level, EBITDA growth was particularly evident in Roche Bobois Europe (excluding France) (+20.7%) and Roche Bobois France (+10.5%), as well as in Cuir Center (+15.8%). The US/Canada remained the Group’s top EBITDA contributor, with EBITDA margin up 1.1 points to 27.1% vs. 26.0% in 2022.”

As for current trading, directly-operated stores were up at the end of February 2024 (+1.8% for all brands combined and +2.3% for Roche Bobois), due to a buoyant February 2024 and more favourable comparative figures. Overall, total retail sales (including franchises and all brands) came to €113.5m at end-February 2024 (down 3.3% on end-February 2023).

“Although the market environment is less favourable, Roche Bobois aims to match the record set in FY2023 in FY2024,” the company said. “The Group expects sales to dip slightly in H1, before picking up again in H2, given the level of the backlog at end 2023 (€137m after brisk deliveries at the end of the year) and the gradual ramp-up of new stores (including franchise acquisitions) while they align with the Group’s standards.

“The Roche Bobois Group also plans to open four new directly-operated stores in the US/Canada region this year, including the imminent opening of a second store in Toronto (Canada). Other projects in other markets have yet to be confirmed. The Group intends to continue its regular pace of five to 10 franchise openings a year.

“Lastly, talks are ongoing with the Roche Bobois franchisee in China with a view to expanding the Group’s directly-operated presence in this new region. China accounted for retail sales of €23m in 2023, with a high gross margin and profitability.”

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