- The company estimates for 2021 a 70% increase in turnover
- MAMBricolaj sales increased in the first quarter of this year by 45% compared to last year
- In 2021, the Company will expand the Furniture School project
Bucharest, 18 May 2021 – MAMBricolaj, a DIY store with a unique concept for furniture manufacturers, DIY hobbyists, and the general public, aims for a turnover of 70.6 million lei for 2021, increasing by over 70% compared to 2020, amid the accelerated expansion of the store network. The main cities targeted are Bucharest, Brasov, and Iasi. To finance the growth of the business, the company intends to carry out a share capital increase operation by cash contribution in 2021.
“With the support of investors, we want to accelerate the company’s development plans by increasing the share capital with cash contribution approved at the annual meeting and by capitalizing on previous profits. In the coming months, we plan to increase the visibility of the MAMBricolaj brand by carrying out various activities, including promoting and expanding the Furniture School project. We believe that 2021 will be another important year in terms of MAMBricolaj growth and we thank the shareholders for their support of our development plans,” said Cristian Găvan, founder of MAMBricolaj.
On April 22, 2021, MAMBricolaj shareholders approved two operations to increase the share capital, one with free shares and one with a cash contribution. The first operation performed will be the capitalization of profits in order to distribute free shares to shareholders. Therefore, the shareholders will receive 4 free shares for each share held. In order to benefit from free shares, shareholders must hold MAM shares on August 23, 2021.
Regarding the increase with a cash contribution, the shareholders who held MAM shares on May 12, 2021, received on May 17 MAMR01 preference rights through which they will be able to participate in the capital increase operation. The rights will be tradable after the submission and approval of the capital increase prospectus by ASF.
The increase of the share capital has as objective the financing of the investments planned by the company. MAMBricolaj is analyzing the opportunity to invest in locations in Bucharest, Brașov, and Iași, areas where there is a growing market of customers interested in DIY products. The MAMBricolaj business model is unique, being located on the border between DIY in furniture and furniture manufacturing, allowing the generally uninformed public to participate in the construction of their own furniture, in a similar way to purchasing custom furniture, but pursuing a quality/price ratio more attractive.
Depending on the need for capital in the coming months, the company is analyzing the additional distribution during 2021 of the undistributed profit from 2018 and 2019, in a total amount of 2.1 million lei. The distribution of the remaining profit would be made in the form of cash dividends or in the form of free shares. The proposal in this regard will be made by the majority shareholder in the second half of this year.
The results of the first three months of 2021 reflect the positive trend of the DIY sector. In the first quarter of the year, MAMBricolaj recorded an increase in sales within the store network of over 45%, compared to the same period of 2020. The increase is due to both a larger number of customers and an increase in the number of transactions, with more than 28% compared to the first quarter of 2020. The value of the average voucher per transaction also increased by over 13% compared to the previous year.
In March 2021, MAMBricolaj opened a new store in Bucharest, on Prelungirea Ghencea Street, following an investment of 1.65 million euros. Currently, the company operates three units in Bucharest, in sectors 2, 4, and 6.
MAMBricolaj is a company listed on the AeRO market of the Bucharest Stock Exchange starting with January 2021. The company has a market capitalization of almost 100 million lei. On May 17, 2021, MAM shares were traded at the price of 56.5 lei per share, an increase of 85% of the price per share compared to the first trading day.
MAM Bricolaj is a DIY store with a unique concept, a supermarket for both furniture manufacturers and people who have DIY as a hobby. Founded in 2011, MAM Bricolaj has implemented the most innovative and convenient system for purchasing furniture materials, being the only specialized store in the field with self-service. MAM Bricolaj offers customers a wide range of products, such as kitchen accessories, dressing systems, drawer systems, lifting systems, furniture legs, aluminum profiles, fasteners, handles, hinges, countertops, MDF, chipboard, edges, hangers, mattresses, mattresses, sinks, consoles, appliances, galleries, chairs, tables, paints or adhesives. MAM Bricolaj has a stock of over 10,000 products, and another 8,000 are available to order. All MAM DIY products can be purchased both in physical stores and online on the website https://webshop.mam-bricolaj.ro.