A prominent French furniture firm has reported a decline in both sales and profit for the full year ending 31 December 2024. The company noted a challenging market environment but remains optimistic about future growth.
Roche Bobois SA, a global furnishings group, saw total sales decrease by 3.6% to €414 million from €429.6 million in 2023. EBITDA dropped to €74.4 million from €90.5 million, with the margin declining from 21.1% to 18%. Net income also fell from €31.3 million to €15.8 million.
The company attributed the downturn to "lower volumes in sales" and the gradual establishment of new directly operated stores, which have yet to achieve normative profitability. However, "good control of operating expenses" helped mitigate the impact. Despite the decline, the group maintained a strong financial structure, with €75 million in gross cash flow and free cash flow of nearly €36 million. Available cash stood at €55 million as of December 2024.
Expansion efforts continued during the year, with the group focusing on opening new company-owned stores in high-potential areas. Notably, the company increased its presence in the United States and Canada and took a majority stake in its Chinese franchisee, Shanghai Rock Castle.
Entering the 2025 fiscal year, the group has expressed "ambitious expectations" despite a challenging furniture market. Retail sales from directly operated stores grew by 3.8% at current exchange rates by the end of February 2025. The company plans further expansion, including new stores in Austin, Las Vegas, and Herblay, along with relocations to premium locations in Grenoble and London's Hampstead.
The group also plans to increase its ownership of Shanghai Rock Castle to 67% in 2025 and is aiming for a return to growth in revenue and profitability.
Source: www.bigfurnituregroup.com