Dynamic business with outlook revised upward
9m 2024 sales up +1.0% (1)
Sustained services growth in all Group regions
Gross margin rate increase
Upward revision of 2024 Current Operating Income (COI) target
Revenue:
- 9m 2024 increasing: €5,238 million, up +1.0% on a reported basis and down -0.2% on a LFL basis (2)
- Stable Q3 2024: €1,849 million, up +0.5% on a reported basis and down -0.6% on a LFL basis (2)
Gross margin rate up by over 100 bps in Q3, excluding dilutive impacts from franchise and changes in scope
Current Operating Income (COI) target raised, now expected to exceed €180m, compared with the previously announced target of at least equal to that of 2023. The cumulative FCF target for 2021-2024 remains unchanged.
Proposed strategic acquisition of Unieuro:
- Strong conviction regarding the attractiveness of the proposed Consideration, valuing Unieuro at c.€12 per share (3) and representing a premium of 42% (4), which was also deemed fair from a financial standpoint by the two independent financial advisors appointed by Unieuro’s board of directors (5)
- Minimum threshold condition lowered from 90% to 66.67% of Unieuro share capital.
The strength of our diversified offering combined with high-value-added services, continues to attract customers and significantly contribute to our growth. Our performance through the end of September is in line with the results we have achieved since the beginning of the year. We are proud to have contributed to the widespread success of the Olympic and Paralympic Games through our ticketing and services activities. As we near the closing of the tender offer on Unieuro, we are convinced of the value creation potential of this combination and look forward to entering the integration phase to create a European leader in specialized retail.
Enrique Martinez, Chief Executive Officer of Fnac Darty
(1) On a reported basis.
(2) Like-for-like basis – LFL: excludes the effect of changes in foreign exchange rates, changes in scope, and store openings and closures.
(3) Taking into consideration both the Cash Portion and the Share Portion and based on the closing price of Fnac-Darty shares equal to €30.20, as recorded on July 15, 2024 (i.e. the last trading day before the announcement of the Offer).
(4) Based on the spot volume-weighted average closing price as of July 15, 2024.
(5) The offer price was deemed fair from a financial standpoint by EQUITA SIM S.p.A. and Mediobanca Banca di Credito Finanziario S.p.A., both appointed by Unieuro’s board of directors to release a fairness opinion on the consideration of the Offer, as well as by five directors of Unieuro (including the chairman of the board of directors and two other independent directors).
