Over the previous quarter ended March 31, 2016, the French Group Bolloré has recorded its lowest turnover since 2012. The value which was €2.4 billion, was 9% down compared to revenue generated at the end of March 2015. The past quarter is thus the least profitable for the group over the past fourteen quarters (starting from Q4 2012).

Though first quarters usually show the lowest results, 2016’s had the poorest performance since 2013. In Q1 2013, the group’s earnings fell by 10.6% compared to Q4 2012. In Q1 2014, it fell by 11% and in Q1 2015 it fell by 8.6% only, compared to the previous quarter (Q4 2015). However, comparing to Q4 2015 (€2.8 billion), the group’s first quarter earnings in 2016 fell by 14.8%. This is its poorest quarterly performance in the past four years.

Bolloré said this was due to its main business’ turnover falling, by 8%, against that in Q1 2015. “While our business all over the world (USA, Europe, Asia) is flourishing, that in Africa (Gabon, Congo, Nigeria, Mozambique and Angola) is impaired by the current oil and commodity slump,” the group explained.

Revenues of Bolloré’s oil logistics business also decreased by 25% over the reference period. Despite the downtrend, the group had some positive results. The revenues of its communication segment increased by 6% while that of its power storage and solution segment increased by 17%. The latter represents only 2.8% of the quarterly turnover. 

In spite of perspectives, the group indicates regarding Africa that its results are being impacted by slump in prices of oil and commodities. Globally, assets managers and various funds, estimate that the group’s business in Africa, and other emerging markets, should restart soon.

Next area of concern is the group’s debt whose gearing (debt ration/own funds), after falling continually to 16.21% at the end of 2014 has soared to 38% in 2015.

On the Euronext Paris where the firm is listed, investors are cautious, following publishing of Q1 2016 results. On Friday May 13, 2016, Bolloré’s share slumped by 6.2%, the lowest since August 24, 2015. However, the share’s slump was moderate (-1.8%) on May 16 for a traded volume valued at €2.5 million.

Idriss Linge