French furnishings firm Roche Bobois SA has reported a decline in full year sales and profit.
According to its latest results for the year ended 31 December 2024, total sales were down 3.6% to €414m from €429.6m in 2023.
EBITDA resulted at €74.4m, down from €90.5m with margin also declining from 21.1% to 18%. Total net income for the period was down from €31.3m to €15.8m.
Commenting on its results, Roche Bobois: said: “Good control of operating expenses partially offset the impact of lower volumes in sales as well as the ramp-up of newly directly operated stores (with their profitability not yet at a normative level).
“Targeted investments continued during this period, particularly focused on expanding the company-owned store network in high-potential geographic areas. The Group strengthened its presence in the United States/Canada (new directly operated stores and franchises buybacks) and took a majority stake in Shanghai Rock Castle, its long-standing franchisee in China.
“Roche Bobois SA maintains a very healthy financial structure, with strong gross cash flow of €75 million and free cash flow of nearly €36 million. Available cash stands at €55 million as of December 2024 with a consistently positive net cash position.”
The Group added that it has entered the 2025 fiscal year with “ambitious expectations” despite a “less favourable environment for furniture market”.
“Retail sales from directly operated stores has grown by +3.8% at current exchange rates at the end of February 2025 (+2.3% at constant exchange rates), reaching €71.1 million,” the group said. “This increase comes from both brands, with a particularly strong double-digit performance at Cuir Center. Overall retail sales (franchised stores and all brands combined) amounts to €114.0 million (+0.3% at current exchange rates, -0.6% at constant exchange rates).
“Looking ahead 2025, Roche Bobois SA aims to return to growth in both revenue and profitability. The Group will benefit from the ramp up of profitability of new stores and the positive effects of the integration of China. Roche Bobois SA also has a solid order backlog of €134.7 million as of December 31, 2024, to support deliveries in the beginning of 2025 year.”
Regarding openings for the 2025 fiscal year, Roche Bobois SA will continue its expansion with new company directly operated stores in the United States (2 Roche Bobois stores planned in Austin and Las Vegas) and in France (1 Roche Bobois store in Herblay).
The relocation of two directly operated Roche Bobois stores to more premium locations is also planned in Grenoble (France) and London’s Hampstead neighbourhood (UK). Another project is also planned in Luxembourg. Finally, the Group will up its stake in Shanghai Rock Castle as planned, reaching a 67% ownership share in 2025.
