Earnings Release • Mar 15, 2023
Earnings Release
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With 977 stores at 1 January 2023, the Group's robust growth is moving forward with a view to achieving the target of 1,000 points of sale by the end of 2025.
The 1Pacte plan, to align the Group with sustainable growth, is continuing to be rolled out.
Orléans, 15 March 2023, 6pm CET - Mr.Bricolage SA, which groups together local independent home improvement and gardening stores, is reporting its consolidated full-year earnings for the year ended 31 December 2022, approved by the Board of Directors during its meeting on 15 March 2023. Following a phase of strong growth during the health crisis, and in a market that normalized in 2022, the volume of business for the Group's networks, at approximately €2.4bn, is up 16.6% on a like-forlike store basis compared with 2019, the pre-health crisis reference year. The rollout of the 1Pacte strategic plan is moving forward, including the modernization of the information systems and the CSR actions. With €35.5m of EBITDA (11.6% of revenues), the ramping up of this plan is being managed effectively, with the Group's good operational and financial performance levels enabling it to refinance its debt.
"In 2022, we launched our 1Pacte 2022-2025 plan, our collective commitment to sustainable growth. We are making good progress with implementing this plan's various actions thanks to the mobilization of our head office and in-store teams. Their collective support for our ambitious strategy, in line with our values and our customers' changing expectations, is vital.
While our results confirm the Group's return to a healthy financial position, in the context of deep and longterm changes in the job market, we are continuing to move forward with the in-depth transformation of our organization around the three core pillars of expertise-independence-responsibility to recruit and retain engaged talents, who are vital to our future growth.
Driven by our proximity model and our approach to continuously improve the services offered to our networks, Mr.Bricolage's development is ramping up in France and other countries. In an economic context marked by the return of inflation and a disrupted geopolitical situation, we need to continue demonstrating our ability to support dedicated and proactive entrepreneurs with developing their commercial performance levels and modernizing their points of sale", confirmed Christophe Mistou, Mr.Bricolage Group CEO.
At 31 December 2022, the member and affiliate networks in France and other countries comprised 920 stores, compared with 908 at end-2021. At 1 January 2023, the number of stores was up to 977, reflecting the new members and affiliates brought on board following negotiations in 2022 and taken into account at 1 January 2023 due to calendar and contractual management reasons. The robust trend for growth in the networks is well on track to reach the target of 1,000 points of sale by the end of 2025.
All of these stores represent a total business volume of around €2.4bn at 31 December 2022. Compared with 2021, sales trends, after being driven by the health crisis, are normalizing, with a contraction of - 0.6% on a total store basis and -2.1% on a like-for-like store basis. This expected trend had been communicated, and total business volume growth still came to +16.6% compared with 2019, before the health crisis.
In France, the Mr.Bricolage Group networks represented a total of 903 stores at 1 January 2023, compared with 846 at 31 December 2022, with a net balance of 57 new points of sale at the start of this year. In France, the 2022 business volume totaled €2.02bn, up 16.1% compared with 2019 on a like-forlike store basis. The Mr.Bricolage brand stores in mainland France recorded +16.6% growth, in line with the change in the market over the period (+16.6%)1 .
Internationally, the Mr.Bricolage brand generated a business volume of €322.5m, up 3.3% on a like-forlike store basis. In 2022, the Group brought on board two new Mr.Bricolage points of sale: a 12th store in Bulgaria and a second store in Gabon. The brand has a total of 74 stores outside of France in 10 countries.
Online sales (excluding click-and-collect = 2h collection) are up +43.6% to €9.8m. This progress reflects the development of the service for deliveries direct from suppliers and the increase in the listings available on www.mrbricolage.fr. Click-and-collect sales are included directly in revenues for the stores.
| Volume of business incl. taxes €m |
Number of stores |
31 Dec 2022 | Change on total store basis |
Change on like-for-like store basis vs 2021 |
Change on like-for-like store basis vs 2019 |
|---|---|---|---|---|---|
| In-store sales | 920 | 2,343.3 | -0.7% | -2.1% | +16.6% |
| - France(a) | 846 | 2,020.8 | -1.6% | -3.1% | +16.1% |
| - International(b) | 74 | 322.5 | +5.4% | +3.3% | +19.2% |
| Online sales (c) (excl. click-and-collect) |
- | 9.8 | +43.6% | na | na |
| Total | 920 | 2,353.1 | -0.6% | -2.1% | +16.6% |
(a) With 319 Mr.Bricolage brand stores, 97 Les Briconautes brand stores and 430 affiliate stores under independent brands. At 1 January 2023, the breakdown was as follows: 319 Mr.Bricolage brand stores, 106 Les Briconautes brand stores and 478 affiliate stores under independent brands.
(b) 74 Mr.Bricolage stores operating in 10 countries: Andorra (1), Belgium (44), Bulgaria (12), Cyprus (1), Gabon (2), Ivory Coast (1), Macedonia (1), Madagascar (1), Mauritius (2), Morocco (9).
(c) The "online sales" item includes home delivery sales and sales collected from Mr.Bricolage stores (excluding click-and-collect).
With a total of 73 Mr.Bricolage brand stores remodeled in line with the store concept at end-2022, the store concept is continuing to be rolled out against a backdrop of geopolitical uncertainty and inflation, which is leading to a temporary slowdown in investment projects. Around 30 deployment projects are already planned for 2023.
1 Banque de France index at 31 December 2022, compared with 31 December 2019.
The 1Pacte plan, rolled out since the start of 2022, is focused on four objectives - Offering, Customers, Networks, CSR - leveraging two driving forces: human transformation and information system developments. The modernization of the information system master plan at the head office and in-store is moving forward. It will contribute to a more agile management of inventory, pricing and customer monitoring.
Alongside this, several projects have been rolled out to make the stores more virtuous and responsible:
At the head office, Mr.Bricolage SA reached a score of 96/100 on the gender equality index in 2022, a figure that has been growing steadily since 2019, demonstrating the relevance and effectiveness of the measures taken to improve gender equality.
The full-year results for 2022 were approved by the Board of Directors during its meeting on 15 March 2023. The statutory auditors' reports are currently being issued.
| Condensed consolidated accounts (€m) | 31 Dec 2022 | 31 Dec 2021 | Change |
|---|---|---|---|
| Consolidated revenues | 306.5 | 302.7 | +1.3% |
| - Network Services | 306.5 | 302.7 | +1.3% |
| - Retail (activity discontinued)(1) | 0.0 | 0.0 | - |
| EBITDA(2) | 35.5 | 39.6 | -10.4% |
| % of revenues | 11.6% | 13.1% | - |
| Current operating profit | 29.3 | 31.1 | -6.0% |
| - Network Services | 29.3 | 31.1 | -6.0% |
| - Retail (activity discontinued)(1) | 0.0 | 0.0 | - |
| Other non-current operating income and expenses | (1.9) | 0.0 | - |
| Operating profit | 27.4 | 31.1 | -12.1% |
| % of revenues | 8.9% | 10.3% | - |
| Financial income (expense) | (2.7) | (5.0) | +46.1% |
| Contribution from associates(3) | 2.2 | 3.1 | -29.0% |
| Corporate income tax | (5.2) | 0.5 | - |
| Profit after tax from continuing operations | 21.6 | 29.7 | -27.2% |
| Profit after tax from discontinued operations(1) | 1.1 | 4.2 | -74.2% |
| Profit (loss) for the period | 22.7 | 34.0 | -33.1% |
| % of revenues | 7.4% | 11.2% | - |
| - Group share | 22.7 | 34.0 | -33.1% |
| - Minority interests | ns | ns |
(1) Following the reclassification of the directly-owned stores business under discontinued operations at end-2019, the "Retail" sector is no longer presented.
(3) This item includes a change in scope linked to a new investment interest with a non-material financial impact (-€0.1m).
(2) EBITDA = "Current operating profit "+ "Depreciation and amortization".
| Condensed consolidated accounts (€m) | 31 Dec 2022 | 31 Dec 2021 | Change |
|---|---|---|---|
| Consolidated revenues | 306.5 | 302.7 | +1.3% |
| - Sales of goods |
217.4 | 210.5 | +3.3% |
| - Sales of services |
89.1 | 92.2 | -3.4% |
Consolidated revenues for 2022 climbed to €306.5m, up 1.3%, with stronger progress over the second half of the year. The 3.3% increase in sales of goods is linked in particular to the change in e-commerce transactions (excluding click-and-collect), the ongoing changes to the various product ranges, and the inflationary context. The -3.4% contraction in services is linked to the change in the volume of business and store purchases, as well as a less favorable product mix in 2022.
Following an exceptional year in 2021, the Mr.Bricolage Group's EBITDA came to €35.5m in 2022, with an EBITDA margin of 11.6%. The operating profit of €27.4m represents an operating margin of 8.9%. In line with its expectations concerning the implementation of the 1Pacte plan, the Group increased its expenditure and investments supporting competitiveness, CSR and, more generally, a strategy for sustainable growth. The Group recorded €33.1m of operating cash flow (versus €38.8m in 2021), enabling it to maintain its agility in a context of economic uncertainty.
Financial income and expenses at €(2.7)m improved by €2.3m. It mainly reflects the reduction in the cost of the syndicated loan set up in 2019 which provided for the capitalization of interest until December 31, 2021. The net profit totaled €22.7m, achieving a net margin of 7.4%, compared with 11.2% in 2021, in line with the resources allocated to the 1Pacte plan's implementation and the repayment of debt. It takes into account a €(5.2)m tax expense, €2.2m of income from associates, and €1.1m of profit after tax from discontinued operations. This corresponds to the reversal of provisions or liabilities that were no longer applicable after the "Retail" business was shut down in 2019 and 2020.
At end-2022, the Group used part of its drawdown capacity in connection with the new credit agreement signed on 28 September 2022, with net financial debt of €24.2m, versus €40m at end-2021.
A new syndicated loan for €100m was set up on 28 September 2022. It is based on €50m of senior debt, with 60% repaid over the period from 2023 to 2026, as well as a final €20m repayment at term in 2027, and €50m of current financing split into several tranches, with a maturity of five years. The new covenants applicable concern the leverage ratio, with net financial debt / EBITDA over 12 months.
At 31 December 2022, this credit facility served to refinance the Group's existing debt (i.e. €120.5m) for €80m. The Group had €51.1m of available cash (versus €80.5m at end- 2021 including the €3.0m overdraft line), including the repayment of the previous syndicated loan.
In 2023, the Group is continuing to roll out the 1Pacte plan to further strengthen its competitiveness and meet the challenges of responsible growth with the following objectives:
Considering the current economic context (increase in interest rates, inflation affecting household purchasing power, pressures on raw material and energy prices, Russia-Ukraine conflict), the Mr.Bricolage Group expects the market environment to be less favorable in 2023 than in the previous three years. The 1Pacte plan will ramp up investments linked to its deployment, which the Group will adapt in the event of an unfavorable change in the conditions.
However, building on its sound fundamentals and its clearly defined ambitions, the Group is giving itself the means to further strengthen its competitiveness and move forward with its roadmap for growth. The change in the profitability ratios will take into account the investments planned as part of the 1Pacte 2022-2025 plan.
Mr.Bricolage's General Shareholders' Meeting will be held on Wednesday 26 April 2023 from 10am at its head office, located at 1 rue Montaigne, La Chapelle-Saint-Mesmin (45), France. Shareholders are invited to consult the "General Meeting" section on the company's website (https://mrbricolage.com/actualites/infos-reglementees/).
The Mr.Bricolage Group, which develops the well-known banners Mr.Bricolage and Les Briconautes, is the French specialist for local independent home improvement retail. As of January 1st, 2023, the Group has 977 stores operating under the banners or through affiliates, including 74 international stores across ten countries. Mr.Bricolage SA is listed on Euronext Growth Paris (ISIN: FR0004034320 - ALMRB).
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