The French distributor Mr Bricolage announced on Wednesday a decline in its net profit of 10.1% in 2023, to 20.4 million euros, in a context of
“decline in household consumption”
and
“slowdown in the construction sector”. construction”
.
This change in household behavior
“concerns in particular the most important renovation and beautification projects
,” the brand explained in a press release to more than 1,000 stores.
The group also cited the
“continued slowdown in the construction sector”
as an unfavorable factor.
The rise in interest rates, which began in 2022, has increased the cost of credit and seized up the real estate sector.
For several months, professionals in the sector have been warning about the collapse in the number of construction starts.
Compared to 2022, the group's turnover decreased by 4.3% to 293.3 million euros.
“In the current economic context, the group has (...) restricted headquarters expenses to limit the impact of inflation
,” added Mr. Bricolage, who emphasizes the development of
“competitiveness and ( de) the attractiveness of brands”
in its strategy.
Success during the pandemic
Mr Bricolage's situation is nevertheless much more favorable than before the health crisis: in the first half of 2019, the group was in the red, with a loss of 8.7 million euros.
With lockdowns forcing consumers to turn indoors, the DIY and home improvement market benefited greatly from the pandemic in 2020 and 2021, but the momentum has since waned .
111 stores joined the network in 2023, which totaled 1,088 points of sale as of January 1.