LabelVie: Results Increase in the First Half of 2025

The LabelVie Group has demonstrated solid performance, with a 13.9% increase in retail revenue, reaching 8.5 billion MAD. Sales amounted to 7.5 billion MAD, reflecting a growth of 13.3%. This growth was driven by contributions from stores opened in 2024, which accounted for nearly 10% of the increase, a 3% improvement in same-store sales, and a 0.3% impact from openings made in the first half of 2025. In the first half of 2025, the Group's EBITDA stood at 644 million MAD, marking a 9.5% increase. This growth is attributed to a 13.7% improvement in gross margin, supported by increased volumes and optimized purchasing conditions, as well as effective management of expense growth, which helped maintain operational profitability. The financial result for the first half of 2025 reached 74 million MAD, benefiting from increased dividends paid by the Group's real estate companies. However, compared to the first half of 2024, there was a decline of 11 million MAD due to the non-recurring capital gain from the sale of 49% of the Group's stake in the OPCI Terramis. Consequently, the EBITDA growth of 9.5% translated into a more moderate increase in consolidated net income of 3.4%, primarily due to higher depreciation expenses resulting from significant investments made last year to support network expansion. "The results of the first half of 2025 confirm the robustness of LabelVie's business model, the relevance of its multi-format and omnichannel strategy, and the commitment of its teams. In a changing market, we continue our development while maintaining sustained profitability and a solid financial structure," stated Rachid Hadni, Chairman of the Board. "The first half of 2025 was marked by strong and positive dynamics across all of the Group's business formats, particularly driven by Supeco, which successfully opened 44 new points of sale. We enter the second half with confidence and reaffirm our objectives for 2025," said Naoual Ben Amar, General Director. A cash-generating model supporting growth, the Group invested 751 million MAD in the first half of 2025, compared to 579 million MAD a year earlier. These investments primarily relate to planned openings in the second half, openings already completed in the first half, and renovations and upgrades of stores. These investments were fully self-financed through an operational cash flow of 928 million MAD, a significant increase from the 751 million MAD in the first half of 2024. The level of net debt remains relatively stable compared to 2024. Confirmed 2025 outlook: The strong performance in the first half of 2025 allows the Group to confirm its annual targets. Several openings are scheduled in the coming weeks, with the Group aiming to exceed 19 billion MAD by December 31, 2025.