(News Bulletin 247) – The irreducible of frozen food is picking up on the stock market after a complicated year 2022. The group is seeing a return of its customers to its stores, a sign that the marketing investments have borne fruit. Ecomiam intends to continue the deployment of its stores outside Brittany, the region of origin of the company.

The Stock Exchange is rediscovering Ecomiam and its 100% French frozen products. The title of the French number 3 in the distribution of frozen products behind Picard and Thiriet rose 10.6% this Wednesday around 12:15 p.m. to 7.3 euros, the day after a hearty gain of 7.1%.

The file experienced a real bad patch in 2022. The Ecomiam share had started the year at 13 euros before beginning its painful descent into stock market hell, until ending the stock market exercise at a historic low of 4 euros. . The group was forced to pass on part of the cost increases (raw materials, electricity, packaging) to selling prices, which diverted some of its customers from its stores with budgets to the nearest euro.

A drop in attendance in 2021/2022

Over the whole of the 2021/2022 financial year (ended at the end of September), Ecomiam recorded store sales up 18.6%, thanks to the opening of 13 new points of sale over the financial year, including 69% outside the Brittany region. But with a constant network, activity suffers from the comparison with the exceptional context of the pandemic, since it contracted by 12.5% ​​over one year.

The brand, which is distinguished by its 100% French references, explains that it has continued its marketing actions in order to strengthen the reputation of the brand throughout the territory. The impact of these actions on operations is expected for the current financial year. But this policy is not neutral on the profitability of the company, since it weighs on the consolidated operating result 2021/2022, still in losses up to 2.5 million euros. The company is not yet profitable since it had a net loss of 2.1 million euros at the end of September 2022.

Paid marketing investments

But the best is yet to come promises Ecomiam, bolstered by an encouraging start to the 2022/2023 financial year. The number 3 frozen food in France achieved store sales growth of 21.9%, to 11.9 million euros. Over the last months of 2022, the group continued its territorial network with the opening of 2 new stores in Brittany (Bain-de-Bretagne) and Occitanie (Cazères).

Above all, the company has seen a return of its customers to its constant surface stores. Between October and December 2022, store sales increased for the second consecutive quarter and grew by 12.2% benefiting from a 3.4% increase in footfall. Ecomiam finally says “to start reaping the fruits of its action plan”. In the first months of its 2022/2023 financial year, the company has seen an increase in store traffic as well as an increase in its conversion rate.

The efforts made by Ecomiam are clearly paying off. The group reiterates its confidence in the deployment of its network and in achieving its 2025 ambitions. The group expects to reach 110 million euros in turnover and 7 million euros in operating income. By this time, the group also intends to increase its number of points of sale to 125.

“In the short and medium term, Ecomiam should benefit from marketing investments that will enable it to consolidate its customer base. The company will thus set up a sponsorship program. Ecomiam will also benefit from the extension of its territorial network with the opening of 20 stores on average per year, 50% of which outside Brittany” explained Cécile Aboulian, equity capital market (ECM) director at In Extenso on BFM Business.

The signals are therefore green for Ecomiam and investors welcome this change in trend. On the stock market, Ecomiam has found a second wind since the start of the year, with a stock that has risen by almost 80%. And for Cecile Aboulian, the upside potential is far from exhausted.

“The favorable outlook is not priced in. The stock still harbors potential. The company has solid growth prospects but also a solid balance sheet, with positive net cash. The objectives for 2025 have been confirmed by management “, concludes the specialist.