Danish retailer Dagrofa has announced that it returned to profit in 2021 after eight years of losses.
The company attributed its performance to three years of concerted efforts through its #StærkereSammen (StrongerTogether) strategy.
Profit for financial year 2021 amounted to DKK 57 million (€7.66 million), up from a loss of DKK 96 million (€12.9 million) in 2020.
'An Important Milestone'
Dagrofa CEO, Tomas Pietrangeli (pictured), commented, “We have reached an important milestone and can be pleased that Dagrofa is once again a profitable business. We have gained market share in retail, increased the store network, and significantly improved the framework conditions for our merchants.
“We have achieved this despite the fact that Dagrofa Foodservice has been significantly affected by COVID-19 restrictions. But even though Dagrofa Foodservice has been challenged, we have continued to work on strengthening this part of the business as well.”
The company reported year-on-year growth in turnover of DKK 421 million (€56.6 million) in the financial year 2021 to DKK 17.9 billion (€2.4 billion).
Operating income (EBITDA) increased to DKK 368 million (€49.5 million) – the highest level since 2010 – from DKK 236 million (€31.7 million) in 2020.
Dagrofa also announced plans to move to a new customer-oriented strategy period, #FremgangSammen, which will see it invest DKK 1.1 billion (€150 million) in stepping up digitalisation, strengthening its store network and selected category positions.
"With a strong effort across Dagrofa, we have achieved the goal of getting black numbers on the bottom line. Now we are ready to be more offensive, and I believe that with #StrongerTogether we have created the foundation for a healthy and sustainable business,” Pietrangeli noted.
As part of its new strategy, the group will focus on differentiating the customer experience, both physically and digitally.
It aims to offer an innovative product assortment and focus more on food expertise, inspiration and local presence.
Pietrangeli added, "Our goal is a profitable Dagrofa going forward. Over the past three years, we have, among other things, increased store profits, modernised and streamlined the business, and gained new customers and market share.
"This means that in 2022 we started our new strategy #FremgangSammen from a strong position, and with a whole group of talented employees, we are in a good place.”