Label Vie is setting its sights on a major transformation by 2028, aiming to multiply its store network fivefold to reach 953 locations. The company also plans to significantly boost its revenue, targeting 27.9 billion dirhams, up from 16.4 billion in 2024. This ambitious growth strategy will rely on a combination of aggressive expansion and a franchise-based model, with a particular focus on discount brands such as Atacadao and Carrefour Express.
To support this rapid expansion, Label Vie is preparing a substantial investment of 7 billion dirhams. Around 80% of this amount will come from self-financing and cash flows from the group’s real estate holdings. BMCE Capital also notes that tapping into capital markets could be an option, as the company aims to maintain strong profit margins despite intensifying competition from rivals like BIM and KAZYON. At the same time, the group expects a gradual stabilization in the pace of new store openings.
By the end of 2024, Label Vie reported a 3.9% increase in consolidated revenue, reaching 16.4 billion dirhams. This growth was largely driven by the opening of 91 new stores, 73 of which were launched in the final quarter of the year. The impact of this expansion is expected to carry into 2025, even as consumer purchasing power remains under pressure.
Profitability remains on an upward trajectory. The company improved its gross margin to 23.4%, benefiting from a rise in its back margin to 12.4%. Meanwhile, consolidated net income climbed 6.7% to 559 million dirhams. BMCE Capital attributes this performance in part to a one-time gain of 35 million dirhams from opening the capital of OPCI Terramis, as well as dividends from the group’s real estate subsidiaries.
Looking ahead, 2025 is expected to be a pivotal year. Label Vie forecasts revenue of 18.7 billion dirhams, fueled by the full-year impact of 2024’s store openings and the continued rise of e-commerce. The company’s Bringo app, which saw an 84% surge in growth last year, is set to expand further. Operating profit is projected to jump 23.4% to 992 million dirhams, while net income attributable to the group is expected to rise by 14.7% to 621.5 million dirhams.
Beyond financial growth, Label Vie is strengthening its commitment to social and environmental responsibility. The company is ramping up initiatives to reduce its carbon footprint, combat food waste, and promote sustainable agriculture. On the social front, it continues to support vulnerable communities, including aiding families affected by the Al Haouz earthquake and contributing to the reconstruction of Amizmiz’s central school.
According to BMCE Capital, Label Vie’s stock presents strong growth potential, with a target price of 5,188 dirhams—representing a projected 29.4% increase from its level on March 11, 2025. The company’s ability to sustain its expansion, maintain profitability, and solidify its leadership in Morocco’s retail sector will be key factors in realizing this forecast.
