Groupe LDLC société anonyme (ALLDL) H1 25/26 earnings summary

Executive summary

• Achieved a marked return to profitability in H1 2025/2026, with first-half revenues up 9.5% year-over-year to €266.8m and a gross margin rate of 22.5%.

• Positive operating earnings of €4.4m, a €13.1m improvement from the prior year, and net income of €1.5m versus a €7.3m loss in H1 2024/2025.

• Strategic initiatives, including the acquisition of Rue du Commerce and new store openings, contributed to growth and market outperformance.

Financial highlights

• Gross margin increased to €60.0m, up 17.0% year-over-year, with a margin rate of 22.5%, 140 bps above the previous year.

• EBITDA reached €8.5m, up €10.9m from a loss in the prior year.

• Operating expenses decreased by 5.4% despite revenue growth, with staff costs down 11.5% due to austerity and adaptation measures.

• Net financial expense rose to €2.6m, mainly from non-recurring, non-cash provisions on financial investments.

Outlook and guidance

• Confident outlook for H2 2025/2026, expecting seasonal trends to boost revenues, profitability, and cash flow.

• Full impact of cost-saving measures to be realized in the second half, supporting further profitability improvement.

• Financial base expected to strengthen as working capital normalizes and profitability improves.

• No significant supply chain risks anticipated; inventory levels and cash position are sufficient to manage potential memory chip shortages.