Fnac Darty

The group has unveiled its first estimates for the year 2022 and forecasts a slight decline in sales, of 1.2% compared to the previous year. In a context where purchasing power is fully affected by inflation, Fnac Darty relies more than ever on its Everyday strategic plan.
Fnac Darty forecasts 2022 sales down 1.2%, while maintaining its gross margin
January 20, 2023, by Sandra Nicoletti

The group has unveiled its first estimates for the year 2022 and forecasts a slight decline in sales, of 1.2% compared to the previous year. In a context where purchasing power is fully affected by inflation, Fnac Darty relies more than ever on its Everyday strategic plan.
Fnac Darty forecasts 2022 sales down 1.2%, while maintaining its gross margin
While the economic context has a direct impact on distribution, the Fnac Darty group is showing resilience and forecasts revenue of around 7,945 million euros for 2022, down 1.2% compared to the year previous. A drop in sales which results from a bad month of December (-55 million euros), but which does not affect the gross margin rate. This should indeed reach 30.2% in 2022, up +80 basis points in one year, supported by a positive product/service mix. “The estimated performance for 2022 demonstrates that the Fnac Darty group has demonstrated good resilience thanks to the commitment of its teams, despite a particularly difficult context for the distribution sector. The group has demonstrated its ability to adapt and has been able to develop its offer to deal with supply difficulties and control its costs in order to minimize the effects of inflation. Compared to 2019, our estimated revenue remains up sharply by +7% and our gross margin rate remains solid. This demonstrates the acuity of our strategic project which, by focusing strongly on customer experience and services, allows us to continue to create value and grow,” says Enrique Martinez.



The group remains mobilized in the execution of the Everyday plan
While current operating income is estimated at around €230 million, free operating cash flow is slightly negative, around -€30 million. A result below the forecasts announced in February 2021, when the Everyday strategic plan was launched. In this context, the Group considers it “unlikely” to achieve its cumulative free operating cash flow target of around €500 million over the 2021-2023 period and is therefore extending this target for 2021-2024. Finally, “the Group remains fully mobilized to pursue the execution of its strategic plan and continue to generate cash in order to ensure its development and a regular return to shareholders in accordance with what was announced during the Everyday strategic plan. This is why Fnac Darty is maintaining its ambition to generate free operating cash flow of at least 240 million euros on an annual basis from 2025,” reads the official press release.

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