Tear Sheet: Mobilux 2 S.A.S.

Its main operating subsidiary (But International) reported a year-on-year sales decline of 1.5%. Revenue saw a slight decrease after a 3.4% drop in like-for-like sales, offset by the opening of 16 additional franchises in fiscal 2023. The group's wide product offering, commercial agility, and expansionary strategy helped it preserve its strong position in the French furniture and home goods market. S&P Global Ratings-adjusted EBITDA of €319 million on June 30, 2023, translated to a higher-than-expected EBITDA margin of 15.9% (14.9% in fiscal 2022). We attribute the improvement to the group's tight cost control and improving purchasing conditions--in particular, the alliance with Conforama, which increased its bargaining power. High inflation in France weighs on consumer confidence, discourages spending, and depresses volumes.

...January 30, 2024 Mobilux 2 S.A.S. reported better-than-expected results in the fiscal year ending June 30, 2023, despite difficult economic conditions. Its main operating subsidiary (But International) reported a year-on-year sales decline of 1.5%. Revenue saw a slight decrease after a 3.4% drop in like-for-like sales, offset by the opening of 16 additional franchises in fiscal 2023. The group's wide product offering, commercial agility, and expansionary strategy helped it preserve its strong position in the French furniture and home goods market. S&P Global Ratings-adjusted EBITDA of 319 million on June 30, 2023, translated to a higher-than-expected EBITDA margin of 15.9% (14.9% in fiscal 2022). We attribute the improvement to the group's tight cost control and improving purchasing conditions--in particular, the alliance with Conforama, which increased its bargaining power. We expect Mobilux to post robust earnings in fiscal 2024, with revenue growth of around 2% supported by further store...

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