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Retail

Colruyt Group Sees Revenue Rise By 2.8% In Full-Year 2017/18

By Steve Wynne-Jones
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Colruyt Group Sees Revenue Rise By 2.8% In Full-Year 2017/18

Belgium's Colruyt Group said that its revenue rose by 2.8% in full-year 2018 (excluding petrol), with the business citing sales price inflation, portfolio expansion and organic growth as influencing factors on its performance.

Revenue for the year was €9.03 billion, with gross profit standing at €2.35 billion. Retail accounted for 82.6% of the group's consolidated revenue.

Gross profit margin was also up, to 26%, from 25.8% the year before.

The group noted that all of its banners 'made a positive contribution' to its full-year sales performance, with the collective market share of Colruyt, OKay and Spar increasing to 31.8% of the Belgian market [2016/17: 31.7%].

Colruyt noted that it posted a margin decline in the first half of the year due to intensified price and promotional pressure, and 'increased promotional activity', but it managed to offset this with a stronger performance in the second half of the year, when the Belgian market was 'less competitive than last year'.

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Divisional Performance

The group's Colruyt banner, operating in Belgium and Luxembourg, reported revenue growth of 2.0%, with sales price inflation and increased customer throughput leading to its growth, as well as stronger calendar effect (+0.3%).

Over the past financial year, 16 stores were fully renewed and converted, and 42 stores were given a new 'look and feel', the group added.

Its OKay, Bio-Planet and Cru banners reported an aggregate revenue growth of over 7%, thanks to new-store openings, new customer inflow, and sales price inflation. During the year, the group opened six OKay and three Bio-Planet outlets.

Colruyt's French division posted a 7.8% increase in revenue (excluding petrol), while the combined store revenue of Dreamland and Dreambaby was 3.6% higher than last year, it said.

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Wholesale revenue posted a 1.4% increase, to €782 million.

Forecast

Looking ahead to the coming year, Colruyt Group noted that it 'expects the retail market to remain competitive in the financial year 2018/19. The group does not anticipate a significant upturn in the economic climate for the consumer in Belgium in the short term. In France, the group expects a modest inflation and a further improvement of consumer confidence.'

It added that it plans to 'consistently implement' its long-term growth strategy.

© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.

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