(AOF) – LDLC’s third quarter 2023-2024 turnover stood at 164.4 million euros, down 3.7% compared to last year for the same period. After a return to growth in the first half, the BtoC activity of the high-tech specialist was penalized by a less buoyant Christmas period than expected, achieving quarterly turnover of 114.3 million euros. down 2.4%. Furthermore, BtoB activities recorded a turnover of 46.8 million euros, down 6.5%.
Given the volatility of demand, linked in part to significant price increases for certain products, the group is now “aiming for a variation in turnover around balance over the entire financial year”.
LDLC intends to return to normative profitability rates in the medium term.
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Concerns remain
According to the Federation of Specialized Trade, Procos, in October 2022, activity fell by 1.5% year-on-year. However, the activity of beauty and health (+ 5.2%) and specialized food (+ 3.5%) are dynamic compared to October 2021. Attendance at points of sale was very impacted by the problems fuel and unfavorable weather. Compared to October 2019, a pre-covid year, the drop in attendance is very sharp (-20.9% in October). Shopping centers and the outskirts are more impacted than city centers with a gap of four to five points.
There are several reasons for concern for the future. The players are experiencing a very significant jaws effect given the increase in their operating costs while the evolution of demand is very uncertain. Very few brands can pass on the increase in their costs in sales prices. The federation therefore asks, among other things, to limit the indexation of the Commercial Rent Index to + 3.5% for the rents of all companies in 2023. It also invokes an absolute emergency: cap the price of energy for 2023 and retroact on contracts already signed to prevent the rate of failures from accelerating.