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Retail

Esselunga Posts 6.7% Sales Growth In First Half

By Branislav Pekic
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Esselunga Posts 6.7% Sales Growth In First Half

Italian supermarket chain Esselunga has reported €4.33 billion in sales in the first half of its financial year, up 6.7% year-on-year.

Growth was affected by COVID-19-related restrictions imposed on mobility between different municipalities, which also impacted its performance in the same period last year.

EBITDA saw a 9.9% growth, amounting to €427.1 million, and EBIT was up 5.6% to €241.8 million (+5.6%), positively affected by the closing of the five-year 'Fìdaty' loyalty programme.

Net profit amounted to €221.1 million, up 5.1% year-on-year thanks partly to €65 million in lower taxes, while capex reached €180.3 million.

Price Competitiveness

According to the company, Esselunga remains at the top for price competitiveness, at 2.6% below the market average, while savings granted to customers amounted €791 million, up by more than €100 million compared to the first half of 2020.

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During the first six months of 2021, Esselunga opened four new stores in Milan, Rome, Varese and Mantua, while another store re-opened in Varese following renovation.

Sustainability Strategy

Existing back-up credit facilities due August 2022 were closed and at the same time three revolving sustainability-linked facilities were signed for a total of €300 million with five-year tenure, linked to the goals set in the retailer's 2020-2025 Sustainability Plan.

These goals include the achievement of a 30% reduction of greenhouse emissions by 2025, and the donation of over €100 million in supplies for Italian schools in the 2018-2025 timeframe.

The board of directors of the company also appointed Gabriele Villa as general manager.

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In July, the supermarket chain announced a pledge to use 100% guaranteed fair trade cocoa across its private-label range by 2025.

© 2021 European Supermarket Magazine – your source for the latest Retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine

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