Pierre & Vacances – Center Parcs: a profitability regained after more than a decade

IN BRIEF Return to profitability: Positive net result of 29 million euros after more than 10 years of losses. “Change Up” Plan: Strategy implemented to ensure recovery and growth. Financial objectives: Aiming for profitability of 10% by 2028 on a turnover of 2 billion euros. Activity growth: Increase of 12.6% in accommodation compared to 2018/2019. Performing Center Parcs: Increase of 13.1% in turnover and solid EBITDA result. Debt refinancing: Agreement reached to stabilize the financial structure.

After a tumultuous period, the Pierre & Vacances – Center Parcs group recently announced its return to net profitability, a first in over ten years. With a net result amounting to 29 million euros, the company shows promising signs of financial recovery. This article examines the steps taken to achieve this return to grace, as well as the company’s future ambitions.

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Return to profitability #

The latest financial report from the group marks a real turning point for Pierre & Vacances. Indeed, the financial structure has been cleansed, partly due to cost-cutting measures and partly through a significant increase in accommodation activity. Compared to the pre-pandemic period, activity recorded an increase of 12.6%, demonstrating a strong recovery in bookings and increased consumer confidence in the tourism sector.

Financial assessment and key figures #

For the third quarter of the 2023/2024 fiscal year, Pierre & Vacances – Center Parcs reported an impressive turnover of 421.0 million euros, with an ambitious target of reaching 2 billion euros in turnover by 2026. Adjusted EBITDA also reflected the effectiveness of the implemented strategies, indicating a return to profitability levels similar to those of Center Parcs, which recorded an operational profitability of 12.3%.

A strategic plan for the future #

The group has implemented a strategic plan called “Change Up”, which aims to stabilize long-term profitability while consolidating its market position. This plan includes debt refinancing, which improves the company’s financial flexibility. Pierre & Vacances – Center Parcs has also committed to achieving record operational profitability of 10% for its turnover by 2028.

Reasons for the recovery #

Several factors have contributed to this significant improvement in the group’s financial situation. Beyond cost reduction, the rise in bookings during peak seasons has played a crucial role. Moreover, the diversification of offerings and a strengthened brand image have helped attract a broader audience, especially in a post-pandemic context where local vacations are particularly popular.

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Encouraging growth prospects #

As Pierre & Vacances and Center Parcs continue to redeploy, the forecasts for the future appear promising. The company aims to increase its market share in a sector that is still rapidly evolving and facing strong competition. With a well-defined strategy, the group plans to capture new market trends and optimize its offerings to meet customer expectations.