Orchestra Premaman reports annual loss of 33.6 million euros

During the 2016/2017 financial year, from March 1, 2016 and February 28, 2017, Orchestra Prémaman Group posted consolidated revenue of 608.3 million euros (690 million dollars), up 8.7 percent year-on-year. However, Consolidated net income group share showed a loss of 33.6 million euros (38 million dollars) in 2016-2017 against a profit of 17.7 million euros (20 million dollars) last year. The company’s board of directors decided to terminate the mandates of Stéphane Mangin and Jacques Blanchet on June 29 and it also appointed Stefan Janiszewski as Chief Financial Officer.

Net income from discontinued operations showed a loss of 3.6million euros (4 million dollars) compared with a loss of 5.6 million euros (6.3 million dollars) last year. The company said, most of this loss was incurred as a result of the store closure plan in Belgium and China.

Review of the annual results

The company attributed the rise in annual revenues to the increase in the number of m² operated under the Orchestra brand run as branches or under commission-affiliation schemes to 293,000 m² at February 28, 2017, strong 50 percent growth in the childcare business, which totalled 109.7million euros (124 million dollars) and now accounts for 18 percent of the total business.

Branch network revenues increased 10.9 percent, while revenues from stores under commission-affiliation schemes, which were impacted by the transfer of business to the trading arm, were up by only 3.9 percent. These two main distribution channels account for 94.7 percent of consolidated revenue for the period. The company’s Internet business progressed well over the period, with revenue climbing 10.7 percent.

The strong increase in trading and miscellaneous revenues, the company said, was due to the development of international contracts and the transfer of two stores in Mauritius and four in the United Arab Emirates, which were previously affiliates, to this network. Business was up 5.4 percent in France, where the group recorded 62.6 percent of its revenue for the period, and continues to grow its market share in childcare products, with an increase of 49.5 percent.

On the international market, the group’s revenue rose by 15.3 percent. In BeLux, growth stood at 13.6 percent due to an entirely restructured and refurbished network. This momentum was also seen in Greece, which became the Group’s number three market due to a 12.8 percent increase in revenue. Following the acquisition of the Autour de Bébé network, revenue in Switzerland grew by almost 80 percent.

Orchestra’s retail network posts positive sales growth

The company’s large format store network posted revenue of 239.7million euros (272 million dollars), up 33.9 percent year-on-year. Revenues from the textile store network declined 5.3percent to 334.5 million euros (379 million dollars), due to the transformation in the company’s network towards larger formats. In total, over the 2016-2017 financial year, the store network grew by 19 units. Large format stores now represent 49 percent of the network's store space and a total of 122 stores.

Orchestra Premaman Group said in a statement that after a year of transition in 2016-2017 focused on investment and increasing market share to build the foundations for future growth, the priority for the company in 2017-2018 is to improve profitability to return to a solid growth path, with a target for gross operating income of 9 percent for 2020.

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