Stock Exchange: Nexity in a state of emergency!

Nexity, a giant in the French real estate market, is taking drastic measures in response to the new housing crisis. A job preservation plan is on the horizon for 2024. Details remain unclear as to how many employees will be affected. Shareholders, on the other hand, will have to tighten their belts: dividends will not be forthcoming. The historic crisis that hits the real estate sector and the stock market forces the French leader to make painful decisions.

Nexity: A Plunge into the Abyss

The turmoil shaking the real estate in China, marked by the liquidation of Evergrande, could it have found an echo in France? Recent information suggests that Nexity, the French leader in the sector, is affected by a similar malady.

The stock market of Nexity looks bleak, sunk into an unprecedented financial slump. The results of the year 2023 have been described as “disastrous” by TP Icap Midcap, which was expecting much more encouraging figures. With a net result plummeting to 19.2 million euros, representing a 90% drop from forecasts, Nexity seems to sink deeper into the mire of the crisis. The absence of a dividend for the year 2023 has only exacerbated fears, announcing the imminent launch of a job preservation plan to deal with the enduring crisis.

Véronique Bédague, the CEO of Nexity, has not hidden the challenges that the group faces in the coming months. She emphasized the unprecedented nature of the crisis shaking the real estate sector, affecting both supply and demand. Nexity is forced to quickly adapt its strategy to adjust to this new situation, with the goal of a financial turnaround starting in 2025.

An excerpt from Ms. Bédague’s comments read in the columns of L’Agefi:

” The crisis our business sector is undergoing is unprecedented, both in its intensity, duration, and its global nature affecting both supply and demand. It brings a new challenge to which Nexity will adapt in an accelerated manner in 2024. “

In this difficult context, the job preservation plan announced by Nexity raises legitimate concerns among its employees. The alarming figures of the past year, marked by a 33% drop in operational profit and a 9% decrease in turnover, do not bode well for the future of the company.