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Monceau Fleurs accelerates its international expansion

Monceau Fleurs Group wants to expand its international presence and is aimed primarily Germany and Asia to boost its sales, told Reuters CEO Laurent Amar.

To support this development, the florist has launched a bond issue in May to a maximum of 12 million euros, which ends June 25 The unit amounts to 500 euros maturing in June 2015, with a coupon of 8%.

"It was rather a good home," said Laurent Amar in an interview. "The receipt of the loan shows that the financial reputation is being done.And the financial reputation is essential for the liquidity. "

Laurent Amar said it had rejected the option of a capital increase because he believes that the current valuation does not reflect his company or its doubling in size after the company acquired in 2008 Rapid'Flore nor its international success.

"As I have my heritage that is in, I refuse to dilute the value then," he said.

Laurent Amar counting on improved financial visibility to see the group increase its capitalization today of 52 million euros.

The group, which already has over 450 stores in eight countries, confirms its objective of growing its network of sales by 20% during 2009-2010, which ends Sept. 30.He added that the pace of store openings to accelerate the international over the last year.

"We went from 6% to 10% in number of stores opened abroad. It'll go faster," said group finance director, Eric Villedieu. "We aim for 1,000 stores in five years," said Laurent Amar.

The group is particularly Monceau penetrate the German market, which he estimated at seven billion euros a year against three billion to France.There is already present through a joint venture with Lagardere Services which owns 40% stake.

The company, which owns the brands Monceau Fleurs, Rapid'Flore and Happy, already extends for several years its international presence by establishing joint ventures with partners.

They have a franchise for periods of seven to ten years in exchange for a fee and a requirement to provide priority via the Monceau group.

"We went further we got from our partners to be the capital of these companies that hold rights in the country.It is quite rare to get this from its partners, "said the CEO.

ASIA, FLORISSANT CONTRACT

Monceau Fleurs said having well through the crisis because of its policy of low prices, achieved in particular through the integration of its suppliers, in addition to its innovative products like its pink bioluminescent.

The CEO also said to have benefited from the crisis to negotiate leases for new retail outlets on terms much more favorable, thereby facilitating its expansion.

Already present in Japan with nine shops, Monceau Fleurs placed on the dynamic Asian markets and their high consumption of flowers, partly due to the multitude of temples in the country to develop.

"It's part of our priorities is a market that is made for us.It would be a mistake not going there, "said Laurent Amar.

Besides the development of the network through franchises, the group does not make acquisitions as opportunities arise, but he says he remains "extremely cautious".

"In terms of developing countries, through acquisition, we do not refuse any opportunity," said Laurent Amar, whose grandfather created Monceau Fleurs in 1965 in Paris.

The group was incorporated in 1985 by the Compagnie Financiere Edmond de Rothschild.

After a degree in business law, Laurent Amar, confident that the flower industry was promising and mostly impervious to attacks, developed the network in the province from 1998 in 2002 before acquiring the company, which now holds , 38, 69% of the capital.

Monceau Fleurs, whose competitors are the Jardin des Plantes in France or the U.S. 1-800-Flowers internationally, has seen its turnover grow by 72% in 2008-2009 due to external growth, 66, 4 million euros for an operating profit (EBITDA) of 1.2 million euros.

At the Paris Bourse, the title listed on Alternext Monceau Fleurs showed a stable course Tuesday to 9.00 euros. Since the beginning of the year, he sold 17% after surging 101% in 2009.