An error found its way into the title of the press release issued today at
09:00. The downward revision of EBITDA target is referring to the fiscal year
2018/2019 (not 2019/2020).
As an extension of the press release issued on January 10, 2019 and at the
request of the AMF, the Orchestra-Prémaman Group (the "Group") announces that
its business is still strongly impacted by a difficult economic and social
environment due to social movements in France. Thus, November 2018 turnover
declined by -8%(*) in comparison with last year. The decrease is limited to
-5%(*) in December thanks to sales plans implemented on the second half of the
month to contain the effects of the crisis. During sales period in January, the
Group set up a strong promotional strategy; the increase made compared to last
year is +5%(*) on the first ten days (+8% in France (*)).
The aim of this promotional strategy is to mitigate the impact of this crisis
on turnover and treasury while at the same time speeding up the disposal of
stocks, which remains the Group's priority in this tensed context. This is
reflected by a reduction in margins driving the Group to revise downward its
annual EBIDTA outlook within a range from 1% to 2% of turnover (against 5% to
6% previously). However, the 2018/2019 revenue forecast published in the press
release issued on November 23, 2018 within 557 and 570 million euros remains
Meanwhile within the framework of State aids, the Group took the lead to get
closer to the government to ask for temporary treasury support through fiscal
and social maturities spread out, which will require agreement by bank and
bondholders' creditors to support the implementation of these measures.
ORCHESTRA - PRÉMAMAN
A public limited company with capital of EUR12.159.825
Head office: 200 avenue des Tamaris, Zac Saint Antoine, 34130 Saint-Aunès.
Registration n° : 398 471 565 in the Montpellier Trade and Companies Register