Orchestra-Prémaman improves margin in first half of fiscal year

By

Sarah Ahssen

Translated by
Nicola Mira

Published
Dec 6, 2017

For the first half of the current fiscal year, from 1st March to 31st August, French children's and maternity wear specialist Orchestra-Prémaman recorded a 2.5% increase in revenue, reaching €304.8 million. The increase was notably driven by a 17,000 m2 increase in retail area in the period, and by growth in the child care business, which rose 12.1%, recording a revenue of €60.2 million. The child care segment is becoming increasingly significant for Orchestra-Prémaman, which last October appointed Philippe Dayraud as General Manager of the child care division.

In the first six months of the fiscal year, Orchestra-Prémaman also managed to cut its losses, now amounting to €5.6 million, compared to €10.8 million a year earlier. EBITDA grew 8.9%, to €22.1 million, equivalent to 7.3% of revenue, compared to 6.8% in the same period last year. This growth in the group's gross margin was due to a less aggressive discount strategy and to an improvement in the margin of the child care business.

In France, where Orchestra-Prémaman generated 63.1% of sales, revenue was up 2.4%, while it grew 2.6% outside France. Also on the up was the number of holders of the group's Club card, now claiming nearly 1.8 million members and up 2.3%. Orchestra-Prémaman generates nearly 91% of its revenue through Club members.

At the end of October, after the merger with US group Destination Maternity once more failed to progress, Orchestra-Prémaman sent a letter to the shareholders of the US maternity wear group , urging them not to renew their directors' mandate. However, the French group has now stated that the two parties have finally decided it is in the best interests of their respective shareholders if the proposed merger is called off, putting an end - for the time being - to a soap opera which lasted for nearly two years.