Fnac Darty sees 20 % profit increase

Despite difficult circumstances, Fnac Darty has finished 2018 with a small turnover growth and a 20 % profit increase. Sales improved in the Benelux as well, even after seven BCC stores were closed in the Netherlands.

‘Gilets jaunes’ cost 45 million euros

Fnac Darty has finished 2018 with a turnover of 7.475 billion euros, 0.4 % more than the previous year. Still, CEO Enrique Martinez is quite satisfied, considering “the exceptional events that had a profound impact on the consumption environment.” France (where the group still makes the lion’s share of its turnover) proved challenging: due to the actions of the ‘yellow vests’, who have been demonstrating every weekend since November, quite a few stores had to close on Saturdays. As this occurred in November and December, traditionally very important months for the group, that “has cost us 45 million euros,” CFO Jean-Brieuc Le Tinier explains to LSA.

Nevertheless, the management is quite happy with the profit figures: operational profits increased by 10 % to 296 million euros, while net profits went up 20 % to 150 million euros. “We have managed to complete the commercial and operational integration [of culture chain Fnac and electro chain Darty, ed.] a year ahead of schedule,” Le Tinier stated with satisfaction.

Benelux up 2.1 %

Fnac Darty runs both Fnac and Vanden Borre in Belgium, and BCC in the Netherlands, generating a Benelux turnover of 936 million euros (+ 2.1 %) despite the closure of seven BCC stores. A solid achievement, thanks to online sales and the strategic alliance with Dutch online department store Wehkamp. Meanwhile, Portuguese and Spanish stores saw a turnover increase of 1.4%, reaching 703 million euros. The group opened three new outlets in those markets, while the webshop generated double-digit growth.

Fnac Darty opened 52 new stores in the past year, bringing the total to 780 outlets, including 260 franchised ones. In the Benelux, the group has 147 stores.