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Retail

Mercadona Posts Double-Digit Sales Growth In FY 2023

By Dayeeta Das
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Mercadona Posts Double-Digit Sales Growth In FY 2023

Spanish retailer Mercadona has reported a 15% increase in sales, to €35.5 billion, in its 2023 financial year.

Out of this total, Mercadona generated €34.1 billion in Spain and the remaining €1.4 billion in Portugal, where it operates around 49 stores, the company noted.

The company said its performance was boosted by its long-term strategy of investing for the benefit of various stakeholders.

Implemented in 2016, investment in this strategy has reached €10 billion in the last seven years, including €1.1 billion in 2023.

The company has renovated and upgraded more than 1,350 supermarkets to its new efficient store model (Store 8) concept.

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Mercadona plans to invest €5 billion in the next five years, including €1.1 billion in 2024, to expand its business in Spain and Portugal.

Net profit for the full financial year amounted to €1 billion, accounting for 3.1% of sales, while EBITDA increased to €1.9 billion, from €1.6 billion in 2022.

Annual Highlights

Mercadona's market share increased by 0.6 percentage points in Spain, to 27.6%.

The company attributed this performance to its efforts to offer quality products at an affordable price, with more than 1,000 price reductions implemented in April 2023 and February 2024.

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The retailer generated 5,000 new jobs in 2023 – 3,200 in Spain and 1,800 in Portugal – to take its total number of employees to 104,000.

It also increased wages by 3.1% in Spain and 1.4% in Portugal to help employees battle inflation.

Mercadona has achieved a significant reduction in emissions, with a decrease of 38% from 2015 to 2022 in both direct emissions and the removal of greenhouse gases.

In the past year, Mercadona allocated €42 million towards the addition of 224 new photovoltaic installations.

Mercadona's tax contribution in Spain and Portugal for the financial year 2023 amounted to €2.6 billion, with VAT seeing a 17% increase to €487 million.

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