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Circle K Denmark Posts Stronger Than Expected Results In Full Year

Circle K Denmark has reported stronger than expected results in its full financial year ended 30 April 2021, with a turnover of DKK 9.3 billion (€1.25 billion).

The company's earnings after tax amounted to DKK 461 million (€62 million) during this period. The company attributed it to growth in Circle K's stores and good business development.

The company noted that its entire financial year, which runs from May 2020 to April 2021, was affected by the pandemic.

At the beginning of its financial year, road transport in Denmark was halved due to shutdown during the first wave of the COVID-19 pandemic. This reduced customer flow and led to a short-term layoff of 400 employees during the spring of 2020.

During summer, many Danes holidayed at home and it contributed positively to the business, and Circle K decided not to apply for wage compensation for the 400 repatriated employees.

Change In Shopping Habits

The positive trend was driven by a change in shopping habits due to the closure of restaurants and bars, and the closure of the border trade.

In addition, several years of investment in new store concepts, with a focus on fresh food and good coffee, have also contributed to the company's performance.

The fuel business also performed better than expected, partly due to a turnaround in low traffic figures over the summer. Rising crude oil prices, over the year, increased the company's inventory value, the company added.

CEO of Circle K Denmark, Mette Uglebjerg, commented, "It has been a turbulent and tough year for many, but despite the shutdown and restrictions, we can still present a good result.

"This can be attributed to several things, but not least our great team spirit and dedicated staff who have made a big difference, keeping stores open and serving our customers despite the pandemic."

Focus On Sustainability

Circle K is investing in new concepts to help deliver the best food and convenience assortment - in a sustainable way. It is creating more sustainable solutions for food, packaging, production and operations.

It is also rolling out electric charging stations for passenger cars throughout the country. For heavy transport, it is investing in e-methanol (Power-To-X) production in association with the company REintegrate.

© 2021 European Supermarket Magazine. Article by Dayeeta Das. For more Retail news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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