22nd May 2014 07:00
Thursday 22 May 2014
Darty plc End of Year Trading Statement
Darty plc today announces a trading update for the fourth quarter period from 1 February 2014 to 30 April 2014 and for the financial year ended 30 April 2014, based on unaudited management accounts. Reflecting the evolving structure of the Group, all trading data for the prior quarters for the financial year ended 30 April 2014 are restated in an appendix to this statement, as is the segmental analysis for the 12 months ended 30 April 2013.
Summary
Good progress during the quarter, building on actions taken in the year in delivering our strategy 'Nouvelle Confiance':
· '4Ds' plan to Drive trading, Digitalise Darty, Develop the brand and Deliver cost efficiency
o Further outperformance in our core markets in what is traditionally a seasonally quiet quarter. Continued growth of web-generated sales in our core businesses confirming customer demand for our multi-channel offer
o Overall total revenue and like-for-like sales in France were broadly flat. Overall group gross margin was flat; gross margin in France was down 40 basis points
· Steps taken to capture future growth opportunities and further strengthen Darty's leadership position in France through the:
o opening of our first four franchise stores as we expand into smaller catchment areas
o completed acquisition of Mistergooddeal.com to extend the 'low price/pay-as-you-go services' offer
· Further elimination of losses in our non-core markets with the completion of the disposal of Darty Turkey
Revenue change
Q4 - 3 months ended 30 April 2014 | Full Year - 12 months ended 30 April 2014 | |||||
Euros
| Local Currency
| Like-for-like
| Euros | Local Currency | Like-for-like | |
Darty France | 0.8% | 0.8% | (0.2)% | 1.1% | 1.1% | 2.8% |
Belgium and the Netherlands | (0.2)% | (0.2)% | (1.4)% | (0.3)% | (0.3)% | (1.2)% |
Other* | (10.2)% | (4.0)% | (8.6)% | (4.6)% | 0.5% | (1.9)% |
Total | 0.1% | 0.3% | (0.8)% | 0.5% | 0.8% | 1.7% |
* Datart in the Czech Republic and Slovakia
Régis Schultz, Chief Executive, commented:
"We continue to make progress, with further market share gains in a seasonally quiet quarter.
"Over the year as a whole we have seen the benefits of our '4Ds' plan to Drive trading, Digitalise Darty, Develop the brand and Deliver cost savings. We have gained market share overall and built on our leadership position in France, with revenue for the year up nearly three per cent on a like-for-like basis. Our first four franchise stores are now open and are demonstrating the benefits of the Darty brand and we have completed the Mistergooddeal.com acquisition to increase our share of the low price/low service segment of the market. While markets remain challenging, our plans as well as a great vision offer for our customers as the World Cup approaches, put us in a good position as we enter the new financial year."
¹ For the financial year ended 30 April 2014, the Continuing Group includes Darty France, Belgium and the Netherlands and Datart. Darty Spain and Darty Turkey are now discontinued businesses.
Q4 trading
Total Group revenue was up 0.3 per cent and like-for-like sales were down 0.8 per cent. Revenue growth was again driven by Communication with White Goods stable and Vision's improving trend reversed ahead of the expected World Cup driven demand in the first quarter of the new financial year. Our web-generated sales continued to grow, reflecting the appeal of our multi-channel offer, now representing over 13 per cent of total product sales. In a seasonally quiet quarter, gross margin was flat, principally due to improved margin in Datart.
Darty France again strongly outperformed the market for the period, with market share gains in all major product categories. Total revenue was up 0.8 per cent and flat on a like-for-like basis. Overall web-generated sales continued to grow, to over 14 per cent of total product sales. Gross margin was down 40 basis points.
At Vanden Borre in Belgium and BCC in the Netherlands overall revenue was down 0.2 per cent, down 1.4 per cent on a like-for-like basis, against a solid performance last year. Web-generated sales continued to grow strongly, up over 14 per cent, to 11 per cent of total product sales. Vanden Borre gained further market share while BCC continued to operate in a difficult market which off-set progress made on margins and costs. With strong revenue growth at Vanden Borre coming from lower margin Multi-media and Communications, overall gross margin was down 30 basis points.
As a result of a stock clearance programme last year, revenue at Datart fell by 4.0 per cent in local currency and by 8.6 per cent on a like-for-like basis, while the gross margin was up 570 basis points.
Discontinued operation - Darty Turkey
An asset sale agreement was signed on 22 January 2014 with Turkish specialist technology retailer Bimeks to sell the Group's Turkish operations. The asset transfer completed on 30 April 2014. The cash impact of the asset sale is still anticipated to be broadly neutral. However given the timing of the asset transfer, the cash outflows related to the deal will now fall mainly in 2014/15.
Refinancing
As previously announced, the Group successfully completed its refinancing on 28 February 2014, comprising €250 million Senior Notes due 2021 and a new five year committed multi-currency revolving credit facility of €225 million. For the financial year ended 30 April 2014 the refinancing will have increased net finance costs by approximately €2million.
ENDS
There will be a telephone conference call for analysts at 07:45 on 22 May 2014. Dial-in number: +44 (0) 20 3003 2666. A recording of this call will be made available after 10.00am. Replay dial-in number: +44 (0) 20 8196 1998, Access Pin: 3482136.
The Group will issue its Full Year Results on Thursday 19 June 2014.
Enquiries
Analysts
Darty plc
Simon Ward +44 (0) 20 7269 1400
Media
| UKRLM Finsbury | |
Jenny Davey | +44 (0) 20 7251 3801 |
France
Le Public Système
Ségolène de Saint Martin +33 1 41 34 23 31
About Darty plc
Darty group is a leading multi-channel service led electrical retailer operating over 380 stores in five European countries and achieving over 13 per cent of its product sales on the web. It generated an annual turnover of over €3.5 billion in 2012/13 through operations in Darty France, Vanden Borre in Belgium, BCC in the Netherlands and Datart in the Czech Republic and Slovakia. Its ordinary shares are listed with the UK Listing Authority and trade on the market for listed securities on the London Stock Exchange under the symbol DRTY.L. It is also listed on the NYSE Euronext Paris.
For further information, please visit the company's website, www.dartygroup.com.
Certain statements made in this announcement are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future results in forward looking statements. Unless otherwise required by applicable laws, regulations or accounting standards, Darty plc does not undertake any obligation to update or revise any forward looking statements, whether as a result of new information, future developments or otherwise.
APPENDICES
Store numbers and selling space as at 30 April
Store numbers | Selling space (000 sqm) | |||
2014 | 2013 | 2014 | 2013 | |
Darty France | 224 | 229 | 313.6 | 315.1 |
Belgium and the Netherlands | 117 | 117 | 129.9 | 129.1 |
Other* | 43 | 43 | 41.0 | 42.8 |
384 | 389 | 484.5 | 487.0 | |
Darty France franchises | 4 | - | ||
Total | 388 | 389 | ||
* Datart in the Czech Republic and Slovakia
Segmental revenue for 2013/14
Revenue change as reported in Euros
Q1 | Q2 | HY | Q3 | Q4 | H2 | FY | |
Darty France | (5.2)% | 4.4% | (0.5)% | 3.6% | 0.8% | 2.5% | 1.1% |
Belgium and the Netherlands | (1.4)% | 0.4% | (0.5)% | 0.1% | (0.2)% | 0.0% | (0.3)% |
Other* | (2.9)% | (2.6)% | (2.7)% | (3.9)% | (10.2)% | (6.1)% | (4.6)% |
Total | (4.3)% | 3.3% | (0.6)% | 2.5% | 0.1% | 1.5% | 0.5% |
Revenue change in local currency
Q1 | Q2 | HY | Q3 | Q4 | H2 | FY | |
Darty France | (5.2)% | 4.4% | (0.5)% | 3.6% | 0.8% | 2.5% | 1.1% |
Belgium and the Netherlands | (1.4)% | 0.4% | (0.5)% | 0.1% | (0.2)% | 0.0% | (0.3)% |
Other* | (1.4)% | 0.7% | (0.3)% | 3.7% | (4.0)% | 1.1% | 0.5% |
Total | (4.3)% | 3.4% | (0.5)% | 3.0% | 0.3% | 1.9% | 0.8% |
Like-for-like
Q1 | Q2 | HY | Q3 | Q4 | H2 | FY | |
Darty France | (0.4)% | 5.8% | 2.7% | 4.9% | (0.2)% | 2.9% | 2.8% |
Belgium and the Netherlands | (1.5)% | (0.4)% | (1.0)% | (1.3)% | (1.4)% | (1.4)% | (1.2)% |
Other* | (3.1)% | (1.1)% | (2.0)% | 1.5% | (8.6)% | (1.9)% | (1.9)% |
Total | (0.8)% | 4.2% | 1.7% | 3.4% | (0.8)% | 1.8% | 1.7% |
* Datart in the Czech Republic and Slovakia
Segmental analysis for the 12 months to 30 April 2013
Darty France | Belgium & The Netherlands | Other | Unallocated | Continuing Group | |
€m | €m | €m | €m | €m | |
Revenue | 2,686.8 | 688.6 | 183.5 | - | 3,558.9 |
EBITDA* | 118.4 | 19.5 | (0.2) | (10.2) | 127.5 |
Depreciation and Amortisation | (53.5) | (12.0) | (3.5) | (1.8) | (70.8) |
Profit on disposal of property, plant and equipment and intangible assets including write-offs | 9.3 | - | - | - | 9.3 |
Retail profit/(loss) | 74.2 | 7.5 | (3.7) | (12.0) | 66.0 |
Share of joint venture and associates' interest and taxation | (0.7) | - | - | - | (0.7) |
Movement in options and related charges over non-controlling interests | - | - | - | 9.7 | 9.7 |
Exceptional items | (31.6) | (23.3) | - | (9.4) | (64.3) |
Profit on disposal of business operation | 7.4 | - | - | - | 7.4 |
Operating profit/(loss) | 49.3 | (15.8) | (3.7) | (11.7) | 18.1 |
Finance costs | (14.1) | ||||
Finance income | - | ||||
Finance costs - net | (14.1) | ||||
Profit before income tax | 4.0 | ||||
Income tax expense | (3.7) | ||||
Post tax loss on disposal | - | ||||
Profit for the year | 0.3 | ||||
Related Shares:
DRTY.L