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2012 was marked by a deterioration in the economic environment,
which led to a slowdown in consumer spending across
many markets. The serious difficulties encountered in 2011 by
several European countries (Greece, Spain, Portugal etc.) intensified
in 2012 and the crisis gradually spread to affect the rest of
the world at various rates and to various extents – maintenance
of moderate growth in the United States, slowdown in Brazil,
wait-and-see attitude of consumers in China, severe recession in
Ukraine etc. Some encouraging signs did, however, emerge in the
fourth quarter in several countries.
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FUNDAMENTALS
In this environment, the small domestic equipment market
confirmed its resistance, albeit with some significant disparities
depending on the country – major slowdown in southern Europe
but relatively firm holding of sales in the north, drop in the market
in China, sustained growth in Russia, volatility in Brazil etc. The
difficult economic situation is putting a brake on purchasing and
is reflected in the attitude of consumers, who are increasingly turning
to low-price products and promotions. This situation has resulted
in a rekindling of competition between the various players
in the sector, a phenomenon amplified by the competition prevailing
amongst retailers.
Against this economic background, the Group recorded a slight
increase in sales at current exchange rates in 2012 and limited
the decline in its operating result from activity following 2 record
years. The Group's financial situation remains healthy and robust.