(BFM Bourse) – The specialist in holiday villages and tourist residences posted dynamic activity over the first three months of its 2022-2023 financial year. Quarterly revenues were notably driven by an increase in accommodation activity. Pierre & Holidays anticipates further growth in its business in the second quarter.
On the verge of bankruptcy a few months ago, Pierre & Vacances now has an attractive face but at the cost of a heavy and painful restructuring. The company recorded a marked increase in its revenues in the first quarter (ended at the end of December) of its 2022-2023 financial year, “despite the current macroeconomic tensions”.
Under IFRS, Pierre & Holidays saw its turnover reach 351.8 million euros between October and December, up 11.9% compared to the same period of the 2021-2022 financial year. Revenue from tourism activities showed sustained momentum with growth of +19.4% compared to the first quarter of 2021/2022 “which had remained affected by an uncertain health context”. This activity thus emerged “in line with the objectives of the period” and confirms the group in “the pursuit of its action plans”.
A rise in prices and overnight stays for Center Parcs
In detail, the accommodation division saw its revenues stand at 272.4 million euros, up 19.6% on one after a 15.9% increase recorded during the summer season. Revenues from the Center Parcs brand notably jumped 16.3% over one year, driven “by an increase in the number of nights sold and the average selling price”. The Adagio service residences, located in urban areas, for their part recorded “remarkable performance, with a level of activity higher than that before the Covid crisis (+22% compared to the 1st quarter of 2019/2020) “and an average selling price “up 38.6% compared to the same quarter of the previous year”.
The return of holidaymakers is therefore materializing quarter after quarter. The summer activity had already emerged very dynamic. Pierre & Holidays had then recorded a clear increase in its income over the last quarter of its 2021-2022 financial year, ending at the end of September. Over the whole of this financial year, revenues amounted to 1.77 billion, up 68%. Mostly, Pierre & Vacances returned to profit at the end of its 2021-2022 financial year, ten years after suffering its first loss. The company which owns the Pierre et Vacances, Center Parcs, Maeva and Adagio brands recorded a net profit of 325 million euros during its 2021-2022 financial year, thanks in particular to the arrival of new investors.
“The group has undergone a major financial restructuring [en septembre 2022]. The company went from a net debt of 530 million euros to a positive net cash position of 67 million euros, thanks to a major effort by creditors and especially shareholders who lost more than 90% of their stake”, also recalls Jean-François Delcaire, financial analyst and portfolio manager at HMG France.
“Continued growth in activity” in the 2nd quarter
Regarding his prospects, Pierre & Holidays anticipates to date “continued growth in activity compared to the 2nd quarter of 2021/2022, across all brands” given its portfolio of reservations to date for the 2nd quarter of the 2022 financial year/ 2023. “In a difficult and uncertain macro-economic context, the group says it is “fully mobilized towards achieving its strategic objectives and in particular controlling its cost structure”.Pierre & Holidays now has a very cash-oriented management, which appeals to investors” recalls the portfolio manager.
“Despite inflation, medium-term results should reflect the implementation of the strategic plan and the reinvention of the Pierre & Holidays” considers Jean-François Delcaire who adds, “Pierre & Holidays has changed a lot, it is much less risky because it is now debt-free”.
On the Paris Stock Exchange, investors appreciated the publication of the day because it reflects the efforts undertaken by the company since its restructuring. The title Pierre & Holidays is still progressing by 5.9% around 3:10 p.m. and by 23.5% since January 1.
Sabrina Sadgui – ©2023 BFM Bourse