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Odiot

CR
Bloomberg   MLODT FP
Luxury  /  France 
Odiot has ultra-luxury credentials with profits to follow
Target
Upside 39.0%
Price (€) 40
Market Cap (€M) 8.91
Money Making

The issue for Odiot – like for any ultra luxury firm – is to manage non-value-destructive growth. Brand stretching is always a quick fix but can come at a cost to the brand. When craftmanship is the underlying manufacturing process (8 craftsmen in all to be grown to 15), capacity cannot be expanded overnight. As it is out of the question to subcontract, striving for extra volumes can only be achieved through more expert staffing, training, modernised tools and processes. The balance between new volume gains and actual net returns is expected to be immediately positive after such changes.

The pricing element matters too as Odiot will pass on the rising cost of precious metals as well as introduce price hikes, notably on one-off pieces of art. Prices are not the issue and some biggish decorative units have been turned into storage of value by some owners.

Odiot has started to update its industrial base (introduction of laser welding machines, internalisation of gold and silver baths) and recruit more which is inevitably likely to hit its bottom line for the first few years. Funding has been raised to that effect (see Debt section).

The group does however see a profitable growth path with its Ebitda margin projected to shoot from 16% in 2024 to 24% in 2026. Via more staff (+7) and renewed plant, the aim is to reduce production time. The figures used in this report are provided by the company.

Note that the legal set up whereby Odiot SA, the listed company, effectively owning 52% of Odiot SAS, the operating company. Odiot SA’s consolidated accounts thus is bound to reflect significant minority interests which are currently not highlighted in the company’s projections. Odiot SA has a number of intragroup contracts with the SAS (cancelled in consolidated accounts) but this need not matter over time if and when Odiot SA gets exhaustive control of Odiot SAS.

Change 25E/24 Change 26E/25E
  12/24A 12/25E 12/26E 12/27E €th of % total €th of % total
Total 184 415 1,081 1,477 231 100% 666 100%
Cutlery
Shaped Decorative Pieces
Prestigious Pieces
Special
Renovation
Other/cancellations 184 415 1,081 1,477 231 100% 666 100%
 
12/24A
12/25E
12/26E
12/27E
 
Total
16.3%
18.1% 32.0% 34.2%  
Cutlery
 
Shaped Decorative Pieces
 
Prestigious Pieces
 
Special
 
Renovation
 
       
Changes to Story : 07/08/2025, Changes to Forecasts : 07/08/2025.