(AOF) – Winfarm, a specialist in distance selling for the agricultural world, recorded an annual net loss of 3 million euros in 2023 compared to a net profit of 30,000 euros a year earlier. Ebitda stood at 2.3 million euros compared to 4.5 million euros at the end of December 2022, representing 1.7% of annual turnover compared to 3.5% in 2022. The group published a figure annual sales growth of 5%, to 137.6 million euros.
“In order to return to more profitable growth for the 2024 financial year and subsequent years, the group has implemented several measures aimed, on the one hand, at revitalizing the activity, optimizing the structure of its organization and limiting the weight of expenses operational”, indicates the company in a press release.
For the entire group, operational expenses will be under strict control, including a freeze on remuneration and hiring for the financial year.
Associated with strict financial discipline, these measures should promote the gradual improvement of activity and profitability over 2024 despite a first quarter which should still be difficult in the commercial field.
AOF – LEARN MORE
Learn more about the specialty distribution industry
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.