Mobilux : Credit update and adjustments to our recommendations

The consumer spending environment has patently been gloomy since the beginning of the year, reflecting low household confidence and a persistently high savings rate. Home equipment is also suffering from a fall in property transactions, although a slight uptick is beginning to emerge, which (if confirmed) could have a positive impact on furniture and electrical appliances in the next few months. In this bleak environment, Mobilux is bound to be impacted, but the group has the merit of: 1 performing in line with market trends; 2/ succeeding in sharply curbing the impact of declining sales on its EBITDA through synergies harnessed with Conforama and cost control; 3/ maintaining a limited and, more important, virtually flat leverage ratio; and 4/ boasting a hefty cash position. All this should help to tide it over a complicated environment until the first buds of recovery appear. In this update, we fine-tune our recommendations in the light of the yields offered by the two (2028 and 2030) bonds after delivering strong performances.