Companies are rapidly restoring their margins

The business district of La Défense, the economic heart of France. Jean-Christophe MARMARA/Le Figaro

Some producers have taken advantage of inflation to increase their margins. Could France find itself caught up in this trend?

The two years of inflation that we have just experienced have had a profound impact on the economic landscape. “The losers are the households whose purchasing power declined, especially in Europe. The winners are the companies that have increased their margins and the governments that have received additional revenue and thus been able to show fiscal largesse,” summarizes Bruno Cavalier, Chief Economist at oddo.

Once absorbed the shock of the war in ukraine and soaring energy prices, companies have indeed, in recent months, resolutely increased their profitability. According to INSEE, their margin rate reached even in the second quarter the very comfortable level of 33.2% against 32.3% the previous quarter and 31.7% on average in 2022. “This increase is mainly due to the marked improvement in the terms of trade linked to the fall in the price of energy imports. The margin rate increased in particular in the energy branches, the fall in import prices not being…

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