Poland's Eurocash Group has reported a 16% year-on-year increase in sales across all business segments, to PLN 7.6 billion (€1.7 billion), in the first quarter of its financial year.
Consolidated EBITDA generated by the company during the quarter amounted to almost PLN 166 million (€36.8 million), up 10% year-on-year, while EBITDA (before taking into account IFRS 16) amounted to almost PLN 53 million (€11.8 million), up 31% compared to the comparable quarter last year.
The net debt to EBITDA ratio (before IFRS 16) at the end of March 2023 aligned with its strategic target at 1.2x compared to almost 2.6x a year earlier.
Paweł Surówka, president of the Eurocash Group said, "Despite the weaker market environment, at the EBITDA level, the Eurocash Group generated the best result in its first quarter in over ten years. The beginning of this year saw a period of high inflation and a decline in retail sales in constant prices."
Divisional Performance
In the wholesale segment, total sales exceeded PLN 5.5 billion (€1.2 billion), with the largest increases recorded by Eurocash Gastronomia (+52%), Eurocash Serwis (+28%) and Eurocash Dystrybucja (+14%).
Like-for-like sales for a fixed number of Eurocash cash-and-carry discount warehouses increased by 6% during the quarter.
Sales in the retail segment reached PLN 1.83 billion (€410 million), up 10% compared to the first three months of 2022.
Like-for-like retail sales in Delikatesy Centrum stores grew at a similar pace, while at Inmedio, like-for-like sales grew 26% year-on-year.
The projects segment generated sales worth PLN 210 million (€46.6 million) in the first quarter, registering a 25% increase compared to the same period last year.
This growth was driven by the performance of Frisco e-grocery chain and expansion of the Duży Ben alcohol supermarket chain.
Sales at Frisco amounted to PLN 109 million (€24.2 million), up 12% compared to the same period last year, with the value of the shopping basket increasing to PLN 319 from PLN 285 in the first quarter of 2022.
The number of active Frisco customers increased by 5% to 91,000 during the year, the company noted.
With 338 outlets at the end of the first quarter, Duży Ben reported a 53% increase in sales to PLN 82 million (€18.2 million) during the quarter.
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© 2023 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
