French refurbisher Largo hits milestone with 500,000 reconditioned smartphones, but challenges remain

A growing market with eco-responsible ambitions 

Founded in 2016, Largo has ridden the wave of changing consumer habits, where eco-responsibility and cost savings are top priorities. The company’s fully integrated, 100% Made-in-France refurbishment process meets the demand for sustainable consumption while supporting circular economy principles. Largo’s short-circuit supply chain strategy and diversified sourcing policy further underline its commitment to minimizing environmental impact.

Impressive revenue growth and strategic focus

In 2021, just after their IPO, Largo reported an 87% year-on-year revenue increase, driven by three strategic pillars: industrial performance improvements, local supply development, and sales acceleration in France and abroad. These efforts coincide with rising demand for refurbished devices as consumers and companies align with sustainability goals.

The IPO and share price struggles 

Despite its operational successes, Largo has faced challenges since its IPO in April 2021. While the initial share price closed at €13.10, it has since plummeted to just €1.88, reflecting investor skepticism. Last year, revenue growth was a modest 0.78%, signaling difficulty keeping pace with the rapidly expanding French secondary market. And since IPO the company has not been profitable.

Balancing growth and market realities 

Largo’s achievements in reconditioning and sustainability are significant, but the company must navigate financial pressures and intensify its expansion efforts. Its strategy to partner with telecom operators, grow e-commerce sales, and launch B2B offerings to support corporate CSR initiatives could be key to unlocking future growth.

Source: share graph by MarketWatch