Spanish retail cooperative Eroski closed the first half of its financial year with a profit of €69.9 million, registering growth of 1.81%, year on year, and a profit margin of 2.77%.
Amid record food inflation, ordinary revenue between February and July grew by 9.21%, to €2.53 billion, driven by Eroski’s pricing policy and implementation of cost-saving measures.
The launch of promotional and price containment measures in the first half resulted in a share increase in many of its main markets.
Operating profit reached €131.9 million, while EBITDA exceeded €166 million.
‘Strength And Competitiveness’
The CEO of Eroski, Rosa Carabel, said, “The results obtained during the first six months of the year demonstrate the strength and competitiveness of our business model. The first half of the year has been challenging, as we have had to cope with the pressure that inflation continues to exert on the value chain and the adaptation of consumers’ purchasing habits.
“Nevertheless, we continued to consolidate our growth with an increase in sales and market share. We have also continued to insist, and will continue to do so in the coming months, on the ongoing effort to promote promotional activity to ease families’ wallets.”
The retailer invested €36.7 million in this period, mainly for opening around 53 new stores (four directly owned and 53 franchised) and remodelling others.
Meanwhile, the Extraordinary General Assembly of Eroski has authorised the issuance of up to €600 million in bonds, and the proceeds will be used to comply with the obligations acquired within the framework of the current refinancing agreement.
The bonds will be exclusively targeted at institutional investors.
Eroski is a leading player in the northern part of Spain, with a market share of 37% in the Basque Country, 19% in Galicia, 28% in Navarra, and 21% in the Balearic Islands.
At the end of 2022, Eroski’s network comprised 1,526 stores, including supermarkets, hypermarkets, cash-and-carry stores, and an online supermarket. It also operates petrol stations, sports stores, and other non-food businesses.