SRP Groupe (SRP) Q4 2024 earnings summary

Executive summary

• 2024 was a transformation year with major investments and decisions amid a challenging macro environment, including political instability and off-season weather impacting sales predictability.

• GMV remained stable at approximately €1bn for the second consecutive year, with growth in Marketplace, Travel, and The Bradery, but net revenue declined 4.5% to €646.5m year-over-year.

• EBITDA stayed positive at €2.3m (0.4% margin), down from €23.6m (3.5% margin) in 2023, as investments in logistics, marketing, and pricing weighed on margins.

• Net result was -€39.7m, mainly due to exceptional items related to The Bradery acquisition debt; excluding this, net loss would be -€17m.

• Key transformation initiatives included a new website, Algolia search bar, international marketplace launch, logistics rationalization, and ramp-up of Retail Media.

Financial highlights

• Net revenue fell 4.5% year-over-year to €646.5m, while GMV was stable at €999m.

• Gross margin declined by 140bps to 36.8%, affected by aggressive pricing and destocking at Beaute Privee.

• EBITDA margin dropped to 0.4% (from 3.5% in 2023).

• Free cash flow before tax turned negative at -€8.3m due to high capex for logistics transformation.

• Cash position at year-end was €46m, with net cash of €9.3m and equity of €162.8m.

Outlook and guidance

• 2025 will focus on recovering the core business, especially in Fashion and Home, with initiatives to strengthen brand relationships, team renewal, and offer selectivity.

• Continued execution of the ACE roadmap aims for smarter, better, and faster operations, targeting 7.5% growth in transformation rate and 10% GMV per buyer growth by 2026.

• Marketplace and Travel GMV share targeted at 20%, international GMV share at 25%, and significant expansion in Retail Media and data monetization.

• New warehouse expected to deliver €5m in savings in 2025 and €7m annually thereafter.

• The Bradery aims for €100m revenue in France and 500% growth since 2022 acquisition.