20 May 2020
PARIS, France: EMOVA Group, France’s leading florist chain including 364 retail outlets, today reports its half-yearly results for the 2019/2020 financial year.
Revenues for the EMOVA Group amounted to €55.4 million over the first half of the financial year 2019/2020. After a resilient first quarter with a rising business volume despite the strikes at the end of 2019, Q2 business volume came to €26.0 million, down €4.4 million. During this quarter, the group was impacted by the continuing strike action in January and then by the lockdown measures related to Covid-19.
Bruno Blaser, Chairman of the Management Board of EMOVA Group, comments, “The impact of the nation-wide strikes that started at the end of 2019, began to hit business for the EMOVA Group. Subsequently, when the governments in France, Italy and Spain ordered a lock down of all non-essential public spaces, including all of the group’s flower shops, amid the coronavirus outbreak. Now that France is slowly opening, the EMOVA Group is strengthening its cash position so that our companies can recover once the pandemic is over. Ties with our franchisees are stronger, thanks to intensive contacts with our partners to support them throughout this crisis period. Our stores reopened in France on 11 May. The date marked the opening of three new stores, as a sign of confidence and hope in the recovery. However, there is still a lot of uncertainty, but I am confident in the resilience of our sector. We remain very vigilant about the safety of our customers, franchisees, and employees. I want to thank our employees, franchisees and partners for their professionalism and commitment during this complex period.”
The volume of Emova’s wholly owned branch business over the quarter held up well, coming in at €2.3 million, down very slightly by €0.1 million compared with the first quarter of the previous financial year. This activity benefited both from the year-on-year increase in the number of branches and the more favourable store mix (+9 Monceau Fleurs branches over the year), which helped offset the impact of strikes and the health crisis during the quarter.
In France, the group’s franchise business amounted to €23.7 million, down €4.3 million versus Q1 last year.
By the end of March 2020, EMOVA Group runs 364 points of sale, including 36 branches and 328 franchises. Between January and March 2020, the group opened five points of sale in France under the Monceau Fleurs franchise, one of these openings being a transformation of Coeur de Fleurs into Monceau Fleurs. According to Blaser, this dynamism illustrates the brand’s strong reputation and its leadership position. The points of sale closed during the quarter were natural closures (notably business disposals).
To date, activity is gradually resuming. All French stores reopened on 11 May. In Spain, Italy and Portugal, sales outlets are also reopening progressively. The group has deployed all necessary health measures to ensure the protection of its employees, franchisees and customers.
The group has the necessary financial resources to support the end of the crisis. With the opening of three new stores, two Monceau Fleurs and one Coeur de Fleurs, scheduled between now and France’s Mother’s Day on 7 June. These retail outlets had been due to open before the containment measures.
In summary, despite very rigorous containment in Italy, Spain and Portugal and a reduction in the number of stores by two, the international business held up well and was down slightly by €0.2 million compared with Q2 last year.
The group’s stronger cash position is thanks to the capital increase with the maintenance of the DPS initiated in April, which raised €2.45 million, including €1.02 million in new money and €1.43 million by offsetting receivables.
Also, the EMOVA Group received state-guaranteed loan measures (PGE) from the government of €5 million, which also bolstered its financial position.
The Emova Group sells flowers and plants under the brick and mortar brandnames Monceau Fleurs, Happy, Au Nom de la Rose, Coeur de Fleurs (129) et its online brand Bloom’s.
In 2018, it was estimated that around 700 florist shops in France operate under a commercial chain brand, thus 4.5 per cent of the 15,260 florist shops in the country.