- UP 50% VERSUS 2015-2016
THE LDLC GROUP TRANSFORMS AND STRENGTHENS ITS GROWTH DRIVERS
FULL-YEAR CONSOLIDATED REVENUES (1 APRIL TO 31 MARCH) - UNAUDITED
Corporate data: 12-month revenues of €346.9m in 2016/2017 versus €317m in 2015/2016
LDLC Group Chief Executive Officer Olivier de la Clergerie MADE the following comments: “During the 2016/2017 FINANCIAL year, we launched and successfully juggled a number of projects. The main challenge was the integration of Materiel.net and roll-out of value-added synergies. Thanks to the work carried out by our teams, the first purchasing synergies have been in place since February 2017 and have earned us one margin point as of this year.
We are currently working on phase two of this integration programme, which involves measures aimed at pooling and optimising our logistics capacities, with the goal of spreading Group stocks across our two platforms located south-east of Lyon and west of Nantes.
We are also developing initiatives aimed at improving the efficiency and agility of our BtoB and BtoC offerings, store network and IT systems. These highly structural projects have been entrusted to experienced LDLC core managers and e-commerce specialists.
Backed by robust fundamentals and an efficient sales and operating system, we can confirm our goal of reaching €1 billion in revenues, an EBITDA margin of around 5.5 to 6%, and around 100 stores by 2021”.
In a market that showed signs of growth in January 2017 before falling back in late February (slump in the PC market reflecting the significant ongoing increase in the price of memory components (1)), LDLC Group posted Q4 revenues of €115m, up 42.8% compared with the same period in 2015/2016.
At constant consolidation scope (excluding Material.net consolidated on 1 April 2016), despite this challenging market and a particularly strong performance last year, revenues remained stable over the period at €80.5m.
For the full year, LDLC Group posted 2016/2017 consolidated revenues of €479.9m, up 49.6% including 6% growth at constant consolidation scope.
BtoC sales amounted to €350.2m, up 74.2% (4.6% at constant consolidation scope), including €47.9m generated by the store network, up 38.7%. The Group opened 10 stores between 1 April 2016 and 27 April 2017, including a second store in the Paris region, at Levallois-Perret, bringing the total number of stores across France to 24.
BtoB revenues amounted to €118.3m, up from €109.0m in 2015/2016.
The remaining businesses contributed €11.4m to Group revenues, up 6.7%.
ACTION PLANS AND OBJECTIVES
LDLC Group's priority for 2017/2018 is to step up investment in order to develop powerful growth drivers:
- The integration of Material.net in terms of logistics and finance will be completed during the year.
- The construction of the new head office in Limonest (Rhone) will be completed in summer, pooling the various Lyon-based teams and the LDLC School at a single location.
- As the pioneer of e-sport in France, a buoyant sector expected to boom over the coming years, LDLC.com has recently created its Gaming House just outside Paris. Team LDLC can therefore prepare for competitions at a single location in an optimal technological environment.
- The roll-out of the network of branch stores and franchises will also be stepped up, with the arrival of a new Chief Executive Officer for the retail business line.
- New sales challenges taken on by the BtoB teams are already bearing fruit. With the hiring of additional teams in Paris, these measures will have an even stronger impact this year, enabling the Group to capitalise on a booming market driven by the growing digitisation of start-ups and SMEs.
Committed to constant improvement and a high-growth development plan, LDLC Group is undergoing transformation and intends to take full advantage of its position as the online high-tech market leader.
(1) - In Q1 2017 the European PC market fell 6.9% - Source: Gartner (April 2017) - Facing increased demand and a mobile phone market that has exploded in terms of storage capacity, the price of memory components has doubled in the space of one year. As a result, this price increase has slowed sales of components and curbed related purchases.
8 June 2017 after market close, 2016/2017 annual results
9 June 2017 at 10.00 am, information meeting, Palais Brongniart, Place de la Bourse, Paris (2nd district)
The LDLC Group was one of the first to venture into online sales in 1997. Today, as an e-commerce leader in the IT and high-tech market, the LDLC Group operates via 12 websites, including 7 commercial sites, serving consumers and professionals alike. The Group employs over 700 people.
Winner of a number of customer service awards and widely recognised for the efficiency of its integrated logistics platforms, the LDLC Group is also developing a network of branch stores and franchises.
Read more at www.groupe-ldlc.com
Amalia Naveira / Marie-Claude Triquet
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Tel.: +33 (0)4 72 18 04 93
Tel.: +33 (0)4 72 18 04 92