La chute du cours de l’action de Lucibel : explications et perspectives d’avenir

Few bosses voluntarily discuss the drop in their company’s stock market value. Frédéric Granotier, CEO and founder of Lucibel, is one of them. As his company is confined to the status of a penny stock on the Paris market, at 0.47 euros per share, down from a high of 1.27 euros on February 27, the director blames investors’ lack of appetite for small and mid caps and the sale of a large block of shares by one of its shareholders, a fund with a deadline, to explain the 32% drop in the share price this year. He assures that “the sale of shares is now over.” “Our market capitalization has fallen to 8 million euros at most, which is barely the valuation of Procédés Hallier, which generates 2.5 million euros in turnover and 0.7 million in profits, all with products manufactured 100% in France in our workshop in Montreuil,” laments Frédéric Granotier, who claims to have already received expressions of interest in this activity. Over the past year, the Normandy-based company has refocused on cosmetic lighting on the one hand, and stage lighting on the other. A restructuring that resulted in the cessation, in December 2022, of the historical office lighting activities LuciConnect and Lorenz, victims of competition from low-cost imports.

Training

Originally accounting for 30% of Lucibel’s total sales, Procédés Hallier, dedicated to lighting for museums and luxury boutiques, saw its turnover increase by 21% at the end of June, to 1.3 million euros, in continuity with 2022 (+24%). He rejoices that “our subsidiary has won contracts with the Louvre, the Musée d’Orsay, the Museum of Pre-Columbian Art in Quito or that of Yves Saint Laurent in Marrakech.” Procédés Hallier generates the highest gross margin of the company, around 70%, according to financial analysts. Operating in a related business, that of custom lighting projects, Lucibel Pro, in the midst of restructuring, saw its sales fall by 15% in the first half. The most spectacular growth came from Lucibel.le Paris, the subsidiary in charge of the cosmetic activity, whose sales exploded by 237% on June 30, to 1.67 million euros. This surge is due in large part to the partnership signed with Dior. An iconic name in French luxury which, when mentioned by Lucibel’s management, had allowed the share price to soar at the end of 2021 and the beginning of 2022.

The flagship of the partnership, the Ove beauty mask, designed by Olivier Lapidus, is positioned as “the most powerful and desirable photobiomodulation cosmetic solution on the market.” It reduces the depth of wrinkles on the face and corrects imperfections of the skin. “The second most powerful product, MyBlend by Clarins, is made in China and not in France,” points out Frédéric Granotier. To date, the Ove mask is deployed in Dior spas in about thirty countries, in a BtoB mode. Lucibel.le Paris has also signed distribution contracts with high-end hotels in Mauritius and with the Hôtels & Préférence chain.

The mask is also marketed in BtoC mode in the Wellness Galerie of the Galeries Lafayette, in Paris, and by Dior salespeople to the brand’s customers when they go to the spa. A last sales channel that is being set up very gradually. Too gradually, perhaps. Frédéric Granotier acknowledges a lack of training for salespeople. “There was a certain inertia at the start of the BtoC aspect, unlike the BtoB aspect,” notes the manager. “This is the first time that Dior has integrated such a light offer, so the staff must be trained on the scientific and commercial aspects.” This is all the more important as the price of the mask is far from trivial: 4,000 euros. Disappointed with the sales in stores, Frédéric Granotier does not rule out the possibility that the partial exclusivity granted to Dior will be reviewed, allowing Lucibel to sign distribution agreements with other luxury players.

Li-Fi Standards

For the future, the company does not provide any specific sales targets, but aims for a gross margin of around 70%. At the end of June, it was 69.4%. A source of concern in a high-rate environment, the balance sheet still needs to be improved, with shareholders’ equity of around 0.5 million euros as of June 30, net financial debt of 3.4 million and still meager profits (179,000 euros in net profit as of June 30). “We are negotiating bank financing,” says Frédéric Granotier. “At this stage, there is no planned market offering.” In the spring, the company raised 2.2 million euros (net) in a fundraising that saw two new shareholders from the luxury world enter its capital. Both wish to remain anonymous. They advise Lucibel on its strategy while opening their network of contacts to it.

In the medium term, Frédéric Granotier remains confident. He is betting on his Ove mask and on Li-fi technology, which has not yet found its market. This could soon change. This summer, the Institute of Electrical and Electronics Engineers added a new 802.11bb standard to light-based wireless communications, Li-fi, which will soon allow its native integration into computers and smartphones.