Posted 23 Feb. 2023 at 06:35 PM
PARIS (Agefi-Dow Jones)–Fnac Darty published a net loss for the past financial year on Thursday and warned that its results would suffer in 2023 from a sharp rise in its energy bill.
The distributor of cultural products and household appliances posted a net loss of 28 million euros in 2022, compared to a net profit of 160 million euros in the previous financial year.
Net income from continuing operations was €100 million, after €145 million in 2021.
Current operating income (COI) also fell, to 230.6 million euros, against 270.7 million euros a year earlier.
The gross margin, the group’s preferred indicator in terms of profitability, on the other hand, increased to 30.3%, compared to 29.5% in 2021, thanks to a better product/service mix, in particular a very good performance in the sales of books, services including Darty Max and ticketing.
Fnac Darty’s turnover is in line with the provisional estimate of 7.95 billion euros provided last month by the group. It was down 1.2% over one year.
According to a consensus established by FactSet, analysts on average anticipated a net profit of 116 million euros, a COI of 219 million euros and a turnover of 7.96 billion euros.
Operating cash generation was negative, at -€30.2 million in 2022, after €170.2 million in 2021.
The group lowered its cash flow target for the 2021-2023 period last month, after recording lower-than-expected sales in December 2022.
For the year 2023, the group expects an increase of 30 million to 50 million euros in its energy-related costs as well as an increase in its payroll, which will weigh on its operating profit. The latter is expected around 200 million euros, “in line or up from 2022 excluding the impact of the expected rise in energy costs”, said Fnac Darty in a press release.
The group also expects a “continuation of the contraction in volumes linked to sluggish consumption coupled with a rise in prices”.
In this context, the Board of Directors will propose the payment of a dividend of 1.4 euros per share for the past financial year, down from the 2 euros paid last year.
-François Schott, Agefi-Dow Jones; 01 41 27 47 92; [email protected] ed: LBO
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February 23, 2023 12:35 PM ET (5:35 PM GMT)