Nexity, the French real estate juggernaut, is taking radical measures to address the new construction crisis. A job protection plan is looming for 2024. Details remain unclear as to the number of employees impacted. Shareholders will have to tighten their belts: dividends will not be there. The historic crisis hitting the real estate and stock market sectors is forcing the French leader to make painful decisions.
Nexity: A dive into the abyss
There turmoil shaking real estate in China, marked by the liquidation of Evergrande, would it have resonated in France? Recent information suggests that Nexity, the French leader in the sector, is affected by a similar problem.
The Nexity stock market looks gloomy, plunged into an unprecedented financial slump. The results for the year 2023 were described as “ disastrous » by TP Icap Midcap, who expected much more encouraging figures. With a net profit in free fall to 19.2 million euros, a drop of 90% compared to forecasts, Nexity seems to be sinking into the twists and turns of the crisis. The absence of a dividend for the year 2023 only aggravated fears, announcing the imminent launch of a job protection plan to deal with the ongoing crisis.
Véronique Bédague, CEO of Nexity, has not hidden the challenges that await the group in the months to come. She highlighted the unprecedented nature of the crisis shaking the real estate sector, affecting both supply and demand. Nexity is forced toquickly adapt your strategy to adjust to this new situation, with the aim of a financial recovery from 2025.
Extract from Ms. Bédague’s details read in the columns of L’Agefi :
“ The crisis facing our sector of activity is unprecedented, both in its intensity, its duration and its overall nature affecting supply and demand. It imposes a new situation to which Nexity will adapt in an accelerated manner in 2024. »
In this difficult context, the job protection plan announced by Nexity raises legitimate concerns among its employees. The alarming figures for the past year, marked by a 33% drop in operating profit and a 9% drop in turnover, do not bode well for the future of the company.
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