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Retail

Italy’s Esselunga Reports 2021 Results Above Market Average

Italian supermarket chain Esselunga achieved consolidated sales of €8.56 billion in 2021 – up by 2.2% on a like-for-like basis, compared to a -0.1% decline across the broader market.

The company reported that shelf prices decreased by 1.4%, which was offset by inflation rising by 1.9% on average.

EBITDA stood at €689.7 million for the year (8.1% of sales), which was down from €710.5 million (8.5%) in 2020.

The industrial margin was eroded by higher costs related to the contractual renewal of logistics-related sectors and increased sales in the e-commerce channel.

Operating Profit For 2021

Operating profit was €322.7 million (3.8% of sales), down from €391.1 million (4.7%) in 2020. This was affected by costs for new openings and higher property write-downs, the retailer noted.

Net profit amounted to €266.5 million (3.1% of turnover), up from €254.8 million in 2020, benefitting from lower taxes following the revaluation of business assets.

Capital expenditure in 2021 was €426.3 million, compared to €389.4 million for the previous year.

New-Store Openings

Seven new stores, along with one temporary property (an Elisenda pastry shop), were opened during the full year, including Esselunga’s first outlet in Vicenza, while two store restructurings were completed.

The group’s net financial position was -€1.7 billion for full-year 2021, which is an improvement of about €103 million on 2020.

Last month, the retailer announced that more than 70% of its stores are now being powered by renewable electricity – a move that will help it reduce CO2 emissions by around 113 million tonnes this year.

Elsewhere, the retailer also recently scored highly for customer satisfaction, outperforming most of the market in a survey by Italian consumer association Altroconsumo.

© 2022 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: European Supermarket Magazine.

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