Polish retailer Eurocash Group has reported 5% growth in revenue to more than PLN 7 billion (€1.6 billion) in the third quarter of its financial year.
Consolidated EBITDA for the period increased by 3% compared to the same period in 2019, amounting to PLN 225 million (€50.3 million).
The company reported around PLN 2 million in additional costs due to the pandemic, which was lower than in previous quarters.
Net profit for the July-September quarter reached almost PLN 37 million (€8.3 million) registering growth of more than 34% compared to the third quarter of 2019.
Divisional Performance
The retailer’s wholesale division generated sales worth PLN 5.26 billion (€1.2 billion), up 3.4% year on year, with online sales through eurocash.pl accounting for more than 30% of this total.
The division saw a 7.4% year-on-year growth in EBITDA to PLN 185 million (€41.4 million).
Member of the management board and financial director of Eurocash Group, Jacek Owczarek, said, “Wholesale revenues were strongly supported by sales to independent stores and franchisees, as well as a dynamic increase in the sales of cigarettes and impulse products.
“These increases more than compensated for lower sales in the Eurocash Gastronomia format, which supplies restaurants and hotels strongly affected by the epidemic, as well as a decrease resulting from the contract with Orlen ended last year.”
The retail division saw a 3.5% sales growth to PLN 1.58 billion (€350 million), while EBITDA amounted to more than PLN 76 million (€16.9 million).
The good performance was driven by sales in Delikatesy Centrum franchise stores, the company added.
The Inmedio retail chain also saw a significant increase in sales during the quarter, after a period of restrictions in shopping centres due to the pandemic.
Projects Division
Sales in the company’s projects segment jumped by 268% year-on-year to exceed PLN 100 million (€22.4 million).
The company attributed this surge to the acquisition of a majority stake in online retailer Frisco in June of this year.
All innovative retail concepts developed by the Eurocash Group also increased sales in the third quarter, Eurocash added.
Duży Ben saw sales up by 111% year-on-year, while abc on wheels registered a 108% growth, followed by Kontigo at 46%.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
