(AOF) – Maisons du Monde fell 26.91% to 12.93 euros on Friday, heavily penalized by the downward revision of its annual objectives … 3 weeks after having unveiled them. In the meantime, the economic situation has deteriorated markedly, explains the furniture and decoration specialist. The persistence of the pandemic in China, worsening bottlenecks. Above all, inflation gallops, driving up the costs of freight, raw materials, energy, while cutting household purchasing power. The sky is clouding over for consumption, and the furniture sector is not spared.
Maisons du Monde has lowered its annual targets, unveiled at the beginning of May, due to the deterioration of the macroeconomic environment and supply conditions. The decorative items and furniture specialist for the home took note of the inflation which is weighing on demand and of the pandemic in China which is generating major bottlenecks. It also factors in freight, raw materials and energy costs which are expected to remain very high. These costs will temporarily penalize the gross margin model.
Also, Maisons du Monde is now expecting a mid-single-digit negative drop in sales against an increase previously.
The Ebit margin is expected at 5% or more, against around 9% until now.
Free cash flow is estimated between 10 and 30 million euros against between 65 and 75 million euros previously.
The dividend distribution rate is however confirmed between 30% and 40%.
Maisons du Monde remains confident in the profitable growth model detailed for the November 2021 Capital Markets Day.
The strategic plan unveiled on this occasion remains fully valid, even if the timetable for achieving the 2025 objectives could be extended, however warns the company.
The group continues, to date, to aim for a turnover of more than 2 billion euros by 2025, including 200 to 250 million from the marketplace, and a turnover of 1.8 to 1.9 billion euros by the same date. This implies a “high single-digit” average annual growth rate between 2022 and 2025.
The furniture brand is also counting on an Ebit margin of around 11% by 2025 with a generation of free cash flow of 350 million euros cumulatively over four years.
This morning, Midcap does not hide its surprise “while the group had confirmed its annual objectives a few weeks ago and the situation has not changed since”.
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