(AOF) – Over the 2023-2024 financial year, Oeneo recorded a decline of 29.9% in its net profit, group share, to 28.9 million euros. The group achieved a current operating profit down 21.7% to 42.8 million, or a current operating margin of 14%, down 1.6 points. “This development is explained by a slight erosion of the gross margin, demonstrating the group’s capacity to absorb increases in raw materials and by a less good mechanical absorption of fixed costs given the drop in activity,” explained the group specializing in cooperage and corking.
Already published, turnover fell by 12.2% to 305.7 million euros.
The board of directors will propose at the next general meeting the payment in cash of an ordinary dividend of 0.35 euros for the 2023-2024 financial year.
“For the 2024-2025 financial year, Oeneo will continue to deploy its strategy focused on high-end segments and innovation, while continuing to control its operational costs in order to protect its current operating profitability” indicated the company regarding of its prospects.
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In France, financial aid aimed at encouraging consumers to repair rather than throw away objects now also applies to clothing and shoes.
The principle remains the same for clothing and shoes as for the selection of electronic products: the consumer must go to an approved repairer to benefit from assistance which cannot exceed 60% of the cost of the repair. The approved organization, “Refashion”, aims to increase the number of repairs by 35% by 2028. The Repair Fund, fueled by “eco-contributions” from brands, finances the operation. However, the question is whether this bonus will have to face the same difficulties as that for household appliances, which has not met with the expected success, in particular due to complex labeling procedures.
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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.