One of Italy's largest grocery chains, Esselunga, posted a sizable fall in net profits for the full 2013 fiscal year, despite strong sales.
According to their financial report which was released late last week, net profit fell 14.3% to €210 million. However, the Group said that sales rose 1.7% over the course of the year to €6.957 billion, with customer footfall increasing 1%.
The gross operating profit amounted to €505 million for the 12 month period, a 6.7% drop form the 2012 figure, while net operating profit dropped €39 million to €328 million.
In a statement released by the company, Esselunga highlight the level of investment as one of the reasons for profits which were less than analysts' expectations.
During 2013, the Group invested €387 million in new store openings and refurbishments. This brings the total investment over the past four years to €1.4 billion.
Directors also confirmed plans to create 2,000 jobs during 2014 while continuing with the expansion of its network, most notably where last week it opened the very first Aprilla branded store in New York.
© 2014 - European Supermarket Magazine by Enda Dowling
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