In its latest report, Attijari Global Research provides a detailed look at the current strategy and future ambitions of Label Vie, a key player in Morocco’s retail sector. Titled “A Credible and Achievable Strategic Shift,” the study outlines the company’s recent decisions to stay competitive in a market under growing strain.
Morocco’s modern retail landscape is facing mounting pressure on two fronts. First, competition is heating up, especially in the convenience store segment, with Turkish discount chain BIM gaining ground and the recent entry of Egyptian newcomer Kazyon. At the same time, rising inflation between 2022 and 2023 has forced consumers to rethink their spending, shifting priorities and reshaping shopping habits across the country.
Yet despite these headwinds, the sector holds significant room for growth. Modern retail accounts for only 21% of the overall market, a rate far below what’s seen in similar economies. With a young population and a digital economy gaining momentum, the environment is ripe for well-positioned retailers to expand.
Label Vie aims to seize this opportunity with a bold expansion plan. By 2028, the group expects to operate 953 outlets, a dramatic increase from 270 in 2024. Most of this growth will come from smaller, more flexible formats: 320 Supeco discount stores, 217 Carrefour Express locations, and 30 Atacadao hyper-discount outlets. The remaining expansion includes 102 mid-size Carrefour Market and Gourmet supermarkets, as well as six large-scale Carrefour hypermarkets.
This strategic shift is designed to rebalance the company’s revenue streams by leaning more heavily on affordable, high-turnover store formats that are better aligned with current consumer behavior.
Financially, Label Vie’s performance in 2024 has already outpaced expectations. The group reported consolidated revenue of 16.42 billion dirhams, up 3.9% year-over-year. Net profit attributable to the group rose by 6.7%, reaching 542 million dirhams. Operating margins also improved, with EBITDA margin climbing to 9.7%, reflecting disciplined management—even as the company invests in formats that typically yield lower margins.
Part of this strong showing is linked to asset sales, including a 49% stake in the property investment vehicle OPCI Terramis. Meanwhile, dividends from subsidiaries Aradei Capital and Terramis provided an additional boost to cash flow.
To support its ambitious investment plan—valued at over 7 billion dirhams between 2024 and 2028—Label Vie is leaning primarily on internal funding. The business model consistently produces healthy cash flows, aided by a structurally negative working capital requirement. The group also has the flexibility to tap into its real estate assets to further strengthen liquidity.
The company’s net debt ratio, projected at 53% for 2024, is expected to fall to 47% by 2028, a figure well within sector norms.
On the stock market, Label Vie remains attractively priced. According to Attijari Global Research, the share is valued at 5,213 dirhams, suggesting a potential 13% upside over the next year. This valuation factors in the company’s holdings in Aradei Capital and Terramis, along with its net debt. When measured against global retail peers, Label Vie trades at a 25% discount on its enterprise value to EBITDA ratio and a 16% discount on its projected 2028 price-to-earnings ratio—appealing metrics for long-term investors searching for value.
