Lithuanian retailer Maxima Grupė UAB has posted a 10.3% increase in revenue to €2.4 billion in the first half of its financial year.
The group's consolidated EBITDA dropped 11% year on year, to €156 million, as it absorbed a 96% increase in energy costs amounting to €23 million.
CEO of Maxima Grupė, Mantas Kuncaitis, said, "We are experiencing unprecedented cost increases, and the price of purchasing our goods is rising. In the first half of the year, we also saw changing customer behaviour, with customers buying less and opting for cheaper goods.
"Therefore, we made an important decision to cover the electricity costs in the first half of this year at our own expense and maintain good prices for our customers."
Consolidated like-for-like (LFL) retail revenues grew by 6.8% (7.6% at constant exchange rates) in the first half, positive in all five markets where it operates, the company added.
In Lithuania, Maxima saw revenue growth of 5.7%, or 6% on LFL basis, while in Latvia, revenue increased by 2.4%, or 3% on LFL basis. In Estonia, the company witnessed 3.4% revenue growth (2.6% on LFL basis).
The company's Polish division, which operates the Stokrotka chain, reported revenue and LFL revenue grew by 26.1% and 13.8%, respectively.
In Bulgaria, the T-Market chain saw revenue up by 16.6%, with LFL revenues increasing by 6.7%.
In both countries, growth in revenue was driven by investments in the expansion of its store network.
E-commerce And Investments
The company's e-grocery revenues remained at a similar level compared to the same period last year.
Barbora, which operates in the Baltics and Poland, accounted for the largest share of revenues in the online channel, while Stokrotka and T-Market also contributed.
The retail group invested €50 million in fixed assets in the first half, focusing mainly on the Polish and Bulgarian markets. It opened 41 new Stokrotka and seven new T-Market stores.
In the Baltic countries, Maxima Grupė continued its store renewal programme, creating a unified standard and a more efficient store network.
The company is focusing on organic growth and increasing the share of revenues in Poland and Bulgaria.
It is also assisting Ukraine and Ukrainian refugees and has employed more than 650 Ukrainians in Maxima Grupė companies in five countries.
© 2022 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.