Earnings release
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1 PRESS RELEASE Nantes, March 11, 2025 ANNUAL RESULTS 2024 IN LINE WITH GUIDANCE: Positive free cash flow Net Sales € 1.002 billion Visible effects of Inspire Everyday expected in 2025, with a gradual return to growth 2024 Highlights ▪ Generated free cash flow (FCF) of €15m driven by strict control of working capital requirements (WCR) and by €45m in cost savings, despite lower turnover (-10,2% Lfl) ▪ A store network of 338 stores, of which 14 managed by affiliates ▪ 63 revamped stores, including new concept in 2 shopping centers, with capex/sales below 2.5% ▪ Launched loyalty program in France in October 2024 and rebalanced media mix with a refocus on the Brand ▪ Improved customer experience in France: NPS increased by 4 points Perspectives 2025-2026: Return to growth ▪ Opening of new stores, particularly through affiliate and franchise partners ▪ Continued efforts on customer events to further promote the Brand ▪ Category extensions, notably including bathroom, outdoor lighting and pet accessories ▪ Revamping of online customer experience ▪ Continued store renovations with a focus on shopping centers: targeting a total of 100 revamped stores by 2025 year-end, while maintaining the capex/sales ratio around 2.5% ▪ Cost savings target increased: more than €100 m over 3 years vs. €85 m previously communicated, of which roughly €60m during 2025-2026 ▪ Further working capital improvement by one month vs 2024, mainly through inventory reduction ▪ Further operating model simplification: additional reduction of SKUs by around 10%, and 50% supplier base reduction (vs 2022) to be achieved by 2025 year-end François-Melchior de Polignac, CEO of Maisons du Monde, commented: “We are making steady progress with our transformation under the Inspire Everyday plan. We intend to continue investing in our brand, in our online and offline customer experience, and in the distinctiveness of our offer as we prepare for the return to growth. In parallel, we will expand on our 2024 achievements to further simplify our operating model, lower our cost base, and improve our cash flow generation potential. With these actions, we remain on track to deliver on our objective of generating a cumulative FCF of over €100m during 2024-2026, having generated €15m in 2024.”
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2 ____ AUDIO WEBCAST FOR INVESTORS AND ANALYSTS: March 11, 2025 at 9:00 a.m. CET / Presentation in English Webcast Connection: https://edge.media-server.com/mmc/p/cm5rg33e ____ 2024 Sales Group sales for the year 2024 amounted to €1.002 billion euros, reflecting a decrease of 10.2% compared to 2023 at constant scope and -11.2% in total, in a difficult context for the Homes and Decoration sector, accentuated by unfavourable macroeconomic factors. The Group continued with the proactive management of its store network, in line with its transformation plan. At the end of December 2024, the store network reached 338 stores, including 14 affiliate s. FY 2024 FINANCIAL PERFORMANCE EBIT
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3 The gross margin rate, of 64%, was up 80 bps compared to 2023, due to the continuation of the favourable effects of freight costs and the positive contribution of the Marketplace offsetting the negative impact of pr omotional activity, especially around the end of the year. Store operating costs and central costs amounted to €496m euros compared to €505m euros in 2023. The targeted actions on costs made it possible to record a gross saving of €45m. EBITDA margin decreased from 18.4% to 14.5% given the decline in volumes. D&A came down slightly, despite the depreciation of the second distribution center in the north of France but which was offset by lower provisions booked in FY24 vs F23. The EBIT margin is positive at 0.1% compared to 4.1% for the year 2023, strongly impacted by the drop in sales. NET RESULT Net income amounted to -115.2 million euros compared to 8.8 million euros at December 31, 2023, and includes: ▪ A financial result of -22 million euros, stable vs 2023 ▪ Exceptional income & expenses amounted to € -11,6m, compared to € 9m at the end of December 2023, mainly linked to store closure costs ▪ An impairment of €81m (non-cash charge) on historical goodwill ▪ An €8 million charge related to the fair value of hedging financial instrument ▪ An income tax credit of 6.5 million euros compared to an expense of 5.2 million euros at December 31, 2023. In view of the Net income, no dividend will be proposed to the next shareholder meeting in June 2025. FREE CASH FLOW 31 décembre 2024 31 décembre 2023 EBITDA 145,3 207,6 Change in working capital 15,4 0,2 Change in other operating items 5,0 (19,1) Net cash generated by operating activities 165,7 188,7 Capital expenditures (capex) (22,7) (33,0) Change in debt on fixed assets (4,9) (2,5) Proceeds from sale of non-current assets 1,6 1,9 Sale of financial assets 0,2 - Decrease in lease debt (111,2) (114,4) Lease interests paid (13,6) (13,3) Free cash flow 15,2 27,4 Free Cash Flow (€ in Millions)
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4 At December 31, 2024, investments reached 23 million euros leading to a Capex/sales ratio of 2.5%, allowing us to continue investing in our IT tools and our stores. Maisons du Monde improved its working capital requirement by €15 million while maintaining good stock availability to start 2025. Free cash flow reached 15 million euros compared to 27 million euros in December 2023. NET FINANCIAL DEBT Leases decreased by €50m reflecting decisions taken on the store portfolio and the Group continues to renegotiate rents with its landlords. Net financial debt excluding IFRS 16 at December 31, 2024 amounted to 85.1 million euros, down slightly compared to December 31, 2023. At the end of December 2024, the Group had around €200m euros of liquidity and has secured financing by its bank pool until April 2028, the Group having obtained an adjustment to its covenants from its banking partners, who accepted it unanimously at the end of last year until June 30, 2025. Net debt (Without IFRS 16) and leverage (€ in millions) 31 décembre 2024 31 décembre 2023 Term loan 75,2 100,0 Revolving Credit Facilities (SFA) 89,8 (1,0) Other debt 10,2 20,1 Gross debt 175,2 119,1 Finance leases 521,2 571,0 Cash & cash equivalents (90,5) (29,9) Net debt (IFRS16) 605,8 660,2 Less : Lease debt (IFRS 16) (521,2) (571,0) Plus : Lease debt (finance lease) 0,5 1,2 Net debt (without IFRS 16) 85,1 90,4 LTM EBITDA (last twelve months) (1) 22,3 81,3 Leverage (2) 3,81 1,11 (2) as stated in SFA (1) EBITDA of €145,3 million is restated in accordance with the senior credit facility agreement dated April 22, 2022
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5 APPENDIX Consolidated income statement (in EUR million) Sales 1,001.9 1,128.0 Other revenue 28.3 28.6 Total revenue 1,030.2 1,156.6 Cost of sales (355.0) (405.5) Personnel expenses (228.3) (238.3) External expenses (311.2) (316.4) Depreciation, amortisation and allowance for provisions (144.1) (161.8) Fair value – derivative financial instruments (8.1) (0.6) Other income/(expenses) from operations 9.5 11.2 Current operating profit (7.0) 45.2 Other operating income and expenses (92.6) (8.9) Operating profit / (loss) (99.6) 36.3 Cost of net debt (7.2) (6.2) Cost of lease debt (13.7) (13.5) Finance income 4.3 4.3 Finance expenses (5.6) (6.8) Financial profit / (loss) (22.2) (22.3) Profit / (loss) before income tax (121.8) 14.0 Income tax 6.5 (5.2) Profit / (loss) (115.3) 8.8 Attributable to: • Owners of the parent (115.4) 8.6 • Non-controlling interests 0.1 0.2 Reported EPS (in €) (2.99) 0.21 2024 2023
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6 Consolidated balance sheet (in EUR million) ASSETS Goodwill 246.0 327.0 Other intangible assets 248.4 247.1 Property, plant and equipment 135.7 158.1 Right-of-use assets related to lease contracts 518.9 568.7 Other non-current financial assets 13.0 13.9 Deferred income tax assets 8.0 8.8 Derivative financial instruments 0.6 - NON-CURRENT ASSETS 1,170.6 1,323.6 Inventory 199.7 202.1 Trade receivables and other current receivables 58.4 73.9 Current income tax assets 5.0 17.7 Derivative financial instruments 8.9 - Cash and cash equivalents 90.5 29.9 CURRENT ASSETS 362.5 323.6 TOTAL ASSETS 1,533.1 1,647.2 EQUITY AND LIABILITIES TOTAL EQUITY 499.5 596.4 Non-current borrowings 53.9 83.9 Medium and long-term lease liability 411.8 450.0 Deferred income tax liabilities 33.9 39.2 Post-employment benefits 10.8 9.2 Provisions 19.0 21.8 Derivative financial instruments 0.3 1.0 Other non-current liabilities - 2.9 NON-CURRENT LIABILITIES 529.7 608.0 Current borrowings and convertible bonds 121.3 35.2 Short-term lease liability 109.4 121.0 Trade payables and other current payables 263.5 269.5 Provisions 2,9 3.1 Current income tax liabilities 5.3 2.9 Derivative financial instruments - 9.3 Others current liabilities 1.5 1.8 CURRENT LIABILITIES 503.9 442.8 TOTAL LIABILITIES 1,033.6 1,050.8 TOTAL EQUITY AND LIABILITIES 1,533.1 1,647.2 31 Dec. 2024 31 Dec. 2023
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7 Consolidated cash flow statement (in EUR million – IFRS 16) 31 Dec. 2024 31 Dec. 2023 Profit/(loss) before income tax (115.3) 8.8 Adjustments for: • Depreciation, amortisation, and allowance for provisions 227.1 163.7 • Net gain/(loss) on disposals 5.4 4.0 • Fair value – derivative financial instruments 8.1 0.6 • Change in fair value – unconsolidated investments - 1.5 • Share-based payments 0.1 1.0 • Other (0.0) - • Cost of net financial debt 7.2 6.2 • Cost of lease debt 13.7 13.5 • I ncome Tax (6.5) 5.2 Change in operating working capital requirement 15.4 0.2 Income tax paid 10.5 (16.0) Net cash generated by/(used in) operating activities (a) 165.7 188.7 Acquisition of non-current assets: • Property, plant and equipment (9.5) (19.3) • Intangible assets (13.5) (14.7) Change in loans and advances granted 0.3 1.0 Disposal of financial assets 0.2 - Change in debts on fixed assets (4.9) (2.5) Sale of non-current assets 1.6 1.9 Dividends received 0.0 - Net cash generated by/(used in) investing activities (b) (25.8) (33.6) Impact of changes in scope of consolidation without change of control (1.6) - Proceeds from issuance of borrowings 90.0 114.2 Repayment of borrowings (30.2) (223.2) Decrease of lease debt (111.2) (114.4) Acquisitions (net) of treasury shares (0.0) (1.1) Dividends paid (2.3) (11.6) Interest paid (6.6) (1.6) Interest on lease debt (13.6) (13.3) Interest received 0.5 - Net cash generated by/(used in) financing activities (c) (75.0) (251.0) Exchange gains/(losses) on cash and cash equivalents 0.5 (0.1) Net increase/(decrease) in cash & cash equivalents (a)+(b)+(c) 65.4 (96.0) Cash & cash equivalents at period begin 25.1 121.1 Cash & cash equivalents at period end 90.5 25.1
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8 In addition to the financial indicators set out in International Financial Reporting Standards (IFRS), Maisons du Monde's management uses several non -IFRS metrics to evaluate, monitor and manage its business. The non - IFRS operational and statistical information related to G roup's operations included in this press release is unaudited and has been taken from internal reporting systems. Although none of these metrics are measures of financial performance under IFRS, the Group believes that they provide important insight into t he operations and strength of its business. These metrics may not be comparable to similar terms used by competitors or other companies Sales: it includes the revenue from sales of decorative items and furniture through i) Stores (owned or affiliates), ii) to franchisees, iii) websites and iv) B2B activities. They also include marketplace commissions. Like-for-like sales (LFL) growth: Represents the percentage change in sales from the Group’s retail stores, websites and B2B activities, net of product returns between one financial period (n) and the comparable preceding financial period (n -1), excluding changes in sales attributable to s tores that opened or were closed during either of the comparable periods. Sales attributable to stores that closed temporarily for refurbishment during any of the periods are included. Gross margin: Is defined as sales minus cost of sales. Gross margin is also expressed as a percentage of Sales. Current EBITDA: Is defined as current operating profit, excluding: ii i. depreciation, amortization, and allowance for provisions and, ii ii. the change in the fair value of derivative financial instruments. The EBITDA margin is calculated as EBITDA divided by Sales. LTM EBITDA: Last twelve months EBITDA. EBIT: Is defined as current EBITDA minus depreciation, amortization, and allowance for provisions. The EBIT margin is calculated as EBIT divided by Sales. Net debt (without IFRS 16) : Is defined as the Group’s finance leases, unsecured term loan, unsecured revolving credit facilities, deposits and bank borrowings, net of cash and cash equivalents. Leverage ratio: Is defined as net debt without IFRS 16 divided by LTM EBITDA. Free cash flow: Is defined as net cash from operating activities less the sum of capital expenditures (capital outlays for property, plant and equipment, intangible, other non -current assets, change in debt on fixed assets, proceeds from disposal of non-current assets and financial) and reduction of rental debt and interest on rental debt.
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9 Disclaimer: Forward Looking Statement This press release contains certain statements that constitute "forward-looking statements," including but not limited to statements that are predictions of or indicate future events, trends, plans or objectives, based on certain assumptions or which do not directly relate to historical or current facts. Such forward-looking statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the future results expressed, forecasted or implied by such forward- looking statements. Accordingly, no representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. Any forward- looking statements included in this press release speak only as of the date hereof and will not give rise to updates or revision. For a more complete list and description of such risks and uncertainties, refer to Maisons du Monde’s filings with the French Autorité des marchés financiers. Financial agenda 15 May 2025 Q1 2025 sales 26 June 2025 Annual General Meeting 25 July 2025 Q2 sales and H1 2025 results 23 Octobre 2025 Q3 and 9-month 2025 sales About Maisons du Monde Maisons du Monde is the leading player in inspiring, accessible, and sustainable home and decoration. The Brand offers a rich and constantly refreshed range of furniture and decorative items in a multitude of styles. Leveraging a highly efficient omnichannel model and direct access to consumers, the Group generates over 50% of its sales through its online platform and operates in 9 European countries. corporate.maisonsdumonde.com Contacts Investor Relations Press Relations Carole Alexandre Tel: (+33) 6 30 85 12 78 Pierre Barbe Tel: (+33) 6 23 23 08 51 calexandre@maisonsdumonde.com pbarbe@maisonsdumonde.com Michelle Kamar Tel : (+33) 6 09 24 42 42 michelle@source-rp.com