Bogart: Net Loss of €22.6M and Ongoing Bank Negotiations
On Tuesday, Bogart released its annual results for 2025, showing a revenue decline of 8.5% to €264.1 million, influenced by a deteriorating economic and geopolitical environment and US tariffs. The group reported an operating loss of €10.1 million and a net loss of €22.6 million, with equity contracting by 29.8% to €57.4 million. Concurrently, discussions are underway with lending institutions following the breach of certain banking covenants, with a restructuring agreement expected by the end of June 2026.
Decline in Revenue, Reduced EBITDA
Revenue stood at €264.1M compared to €288.8M in 2024, marking a decline of 8.5% at current exchange rates (7.5% at constant scope and exchange rates). This contraction reflects stagnant global consumption, particularly in France and Europe, and a slowdown in exports to the United States due to tariffs, prompting distributors and retailers to reduce order volumes. EBITDA fell to €27.3M from €41.8M in 2024, a decrease of 34.7%. At Bogart Fragrances and Cosmetics, EBITDA dropped from €9.6M to €5.3M, while at Bogart Beauty Retail, it was €18.9M, down from €28.2M a year earlier. The group notes that this mechanical degradation occurred before the full effects of network efficiency measures materialized.
Major Network Restructuring Underway
To regain operational flexibility, Bogart undertook a strategic reorganization in 2025, marked by the closure of 30 unprofitable stores in France (9), Germany (10), and Belgium (11), and consolidating activity in Dubai to a single high-visibility store (Dubai Mall). The workforce was reduced from 2,045 to 1,849 employees, a 10% decrease for the full year. Personnel expenses decreased to €65.6M from €68.1M in 2024 (-3.7%), while other current expenses also fell to €51.0M from €52.6M (-3.1%). This reorganization plan will continue into 2026, notably with a Job Preservation Plan launched by the subsidiary April France SAS for 17 stores (out of 35) and about 40 positions (out of 105), approved by the DRIETTS on April 7, 2026.
Positive Cash Flow but Increased Debt and Weakened Covenants
Despite the downturn, the group maintained a positive free cash flow of €13.7M (operating cash flow of €17.4M) and gross cash reserves of €36.7M. However, equity contracted significantly to €57.4M from €81.6M in 2024 (-29.8%), while net financial debt rose to €51.2M from €33.3M, an increase of 53.8%. Total borrowing (excluding IFRS 16 lease liabilities) reached €87.9M compared to €76.5M in 2024. The group secured €6M in new loans and drew €32.0M on its revolving credit facility, while repaying €43.0M in loans and lease liabilities. As of December 31, 2025, Bogart had breached certain banking covenants; discussions are ongoing with lending institutions for a restructuring agreement expected by the end of June 2026.
