After a three-year overheating that helped Quebec hardware maker BMR have a record year last year, building materials prices are likely to fall in the coming months, according to the big boss of Sollio Groupe Coopératif.
“We don’t see any price increases on the horizon for next year. Rather, we’re seeing declines,” said Pascal Houle, CEO of Sollio Groupe Coopératif, which includes BMR, Olymel and Agriculture, in an interview with the Journal on Wednesday.
“For lumber and plywood, prices are low. We don’t see any increase. It could drop further in the coming months,” said the one who ran BMR before taking the lead for the entire group.
Today, BMR reported record pre-tax profit of $53.8 million, compared to $28.2 million a year ago. That’s a jump of $25.6 million, or 91%.
Rising commodity prices, the arrival of new traders and inflation may explain these results. But the construction industry is now running out of breath.
After historical spend of $23.5 billion in the industry last year, the Association of Building and Housing Professionals of the United States, Quebec (APCHQ) expects a 15% decline to $20 billion in 2023. dollars expected.
However, this lull might sneer at Quebecers who have renovation projects.
“This is good news for consumers, prices are tending to fall,” says Pascal Houle.
“We expect a lower demand for materials. Housing starts are less strong,” he observes.
Olympus in red
At Olymel, strong financial results in processed pork and poultry contrasted with the fresh pork sector, where the Chinese market was closed for several months.
“We’ve lost almost $390 million on fresh pork in the last two years,” Pascal Houle admits in an interview with Le Journal.
When asked whether there could be further plant closures after the Saint-Hyacinthe plant closure, which was shaped by spirits, the senior boss was reluctant.
“We consider all scenarios. We look at the entire pork sector. We don’t currently have a factory closure in our plans,” he said.
“But I would tell you that our goal is really a turnaround in the pork sector at Olymel,” he hastily adds.
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highlights
On Thursday, Sollio Cooperative Group reported revenue of $8.9 billion for the most recent fiscal year, up $1 billion, or 13%, from a year earlier, but a loss before taxes and refunds of $337.5 million US dollars, fifteen times more than that of 21.5 million dollars for the same period last year.