SMCP reports strong H1 sales and profit growth

SMCP, parent company of Sadro, Maje, Claudie Pierlot reported consolidated sales of 565.4 million euros, up 24.7 percent in the first half period, including an organic increase of 21.4 percent driven by like-for-like growth of 24.5 percent and a positive currency impact of 4.2 percent.

The company said, SMCP recorded a sharp performance in Europe throughout the semester, a strong momentum in the Americas, partially offset by the significant impact of the Covid restrictive measures in APAC.

Commenting on these results, Isabelle Guichot, CEO of SMCP, stated in a statement: We were able to perform very well in all our regions where local clients spending was above pre-pandemic levels, apart from Asia, where our stores were temporarily closed due to Covid restrictions. Over the first half, we also managed to strongly increase our profitability thanks to tireless efforts to increase full price sales.”

Review of SMCP’s first half results

The group generated stable digital sales compared to H1 2021, resulting in a digital penetration of 22 percent, well above the pre-pandemic level of 15 percent in 2019.

The company’s adjusted EBITDA increased from 98.5 million euros in H1 2021 to 121.8 million euros, adjusted EBIT jumped by 75.8 percent to 45.2 million euros and Group share stood at a net profit of 20.7 million euros versus 0.9 million euros in H1 2021.

At the beginning of the year, SMCP finalised its brick-and-mortar network optimization plan, with 14 net closures in the first half year of which 17 closed in the first quarter and three openings in the second quarter.

Among these net closures, the discontinuing of the Suite 341 format in France represented eight closures. In EMEA, SMCP recorded six POS net closures, mainly from store consolidation , partly compensated by key openings in Belgium, Estonia and Spain. In APAC, SMCP opened new stores in China and Korea.

SMCP’s sales breakdown by region

In France, sales were up 40.8 percent on an organic basis, a sharp improvement over the semester, fully driven by like-for-like growth of 44 percent and leading to a level exceeding 2019. Sales growth in the second quarter against Q2 2019 was 8.2 percent on an organic basis.

In EMEA, group sales were up by 50.4 percent on an organic basis versus H1 2021, including a like-for-like growth of 68.6 percent; a strong performance driven by both local demand and the progressive recovery of tourism. As in France, the second quarter growth exceeded 2019 by 10.6 percent on an organic basis.

In APAC, the intensifying Covid restrictions, first in Hong-Kong and then in Mainland China, had a sharp impact on sales, leading to a 24 percent decrease on an organic basis. Hong-Kong SAR and Macau SAR also suffered from these restrictions leading to a drop in traffic and low tourism.

In the Americas, sales increased on an organic basis by 28.1 percent and 16.3 percent versus 2019 driven by like-for-like growth of 29.8 percent.