Ramp-up of store openings in second half
Agreement signed for OLYS acquisition
LDLC Group ceo Olivier de la Clergerie MADE the following comments: “We saw an improvement in the second quarter of the financial year compared with the first, although the BtoC business is still feeling the effects of the continued surge in memory component prices, which has primarily affected the price of memory modules and SSDs for several months now. Our store network continued to generate revenue growth, and the number of store openings is expected to increase in the second half with 6-8 openings already scheduled. The BtoB business is performing well and posting consistent revenue growth; it will soon benefit from OLYS's experience in this area.”
FIRST HALF CONSOLIDATED REVENUES (1 APRIL TO 30 SEPTEMBER) – UNAUDITED
|Total H1 revenues||215.5||221.1||-2.5%|
First half figures, corporate data: H1 revenues amounted to €204.2m compared to €157.2m in the previous year.
As announced, the BtoC business picked up in the second quarter, with a marked improvement in sales despite the continuing impact of rising memory component prices (down 3.2% in Q2 versus 4.4% in Q1).
The BtoC business posted H1 sales of €155.0m, including €69.6m in Q1 and €85.4m in Q2. The LDLC Group's 26 stores as at 30 September 2017 contributed €24.1m to BtoC sales, up 19.3% from €20.2m in the same period last year.
LDLC.pro continued its development with revenues of €54.6m, including €26.4m in Q2 2017/2018 compared to €25.9m last year.
Other business including Maginéa posted first half revenues of €5.9m, up from €5.7m the previous year.
It appears that the challenges presented by memory chip prices will continue to impact this year's sales. The LDLC Group is now focusing on the Christmas period, an important period for BtoC sales which will allow the Group to estimate full-year performance with greater precision.
The Group also plans to further drive growth by ramping up new store openings in the second half.
In addition, the plan to set up operations in Spain by the end of the 2017-2018 financial year (online and pilot store) is moving forward, while the development of BtoB continues apace with the creation of a sales force and delivery warehouse in the Paris area.
Lastly, the LDLC Group has embarked on a major plan to boost its BtoB business via the acquisition of OLYS and its subsidiaries (the OLYS Group), which markets the BIMP brand, and Synopsis, whose main activity is the management of OLYS's communications. Subject to fulfilment of the conditions precedent, LDLC expects to close this transaction by 31 January 2018.
The LDLC Group has set itself the goal of reaching the billion-euro revenue mark and an ebitda margin of 5.5%-6.0% by 2021. By that time, the Group plans to have around 100 stores up and running.
LDLC.COM ONCE AGAIN WINS “CUSTOMER SERVICE OF THE YEAR” AWARD FOR 2018*
For the fourth year running, LDLC.com has won the “Customer Service of the Year” award in the Technical Product Distance Selling category. LDLC's 60-strong in-house customer service department saw its average rating remain stable at 18.46/20.
*Inference Operations survey - Viséo CI - May-July 2017
30 November 2017 after market close, H1 2017/2018 results
1 December 2017 at 10.00 am – Pershing Hall, 49 Rue Pierre Charron – 75008 Paris
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
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