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Mercadona Reports 11% Sales Growth In Full-Year 2022

By Branislav Pekic
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Mercadona Reports 11% Sales Growth In Full-Year 2022

Spanish supermarket chain Mercadona reported a turnover of €31 billion, up 11% year-on-year on a like-for-like basis, in its financial year 2022.

Out of the total, €30.3 billion was generated in its home market and the remaining €737 million in Portugal (up 77.6% year-on-year).

The retail group's net profit amounted to €718 million, up 5.6% on 2021.

Impact Of Inflation

The impact of inflation (15.7% in Spain and 19.9% in Portugal) reduced margins by 0.6% and put profitability at one of the lowest levels in the company’s history: €0.025 profit per euro sold, compared to €0.027 in 2021.

To minimise the impact of inflation on retail prices, the company implemented numerous measures to reduce costs and multiply efficiency, which helped in improving productivity by 7% compared to 2021.

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At the same time, it implemented numerous actions to minimise the effect of price increases of raw materials, resulting in savings of €150 million in 2022.

Read More: Top 10 Supermarket Retail Chains In Spain

In Spain, Mercadona invested €783 million and ended the year with 1,637 stores, with a 15.5% market share.

During the past year, the company shuttered 49 stores that did not fit its new, more efficient and sustainable store model, but also opened 53 new stores.

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It also opened two new warehouses for the preparation and distribution of orders for online sales in Spain, while the ready-to-eat section was rolled out in 972 stores (933 in Spain and 39 in Portugal).

Portugal

In Portugal, the Spanish retailer invested €140 million, opening ten new stores during the year and taking the network to 39 supermarkets.

Mercadona’s operations in Portugal remained in the red, with a net loss of €50 million in 2022, an improvement over a loss of €64 million the previous year. The units expects to break-even in 2024.

Turnover from online sales amounted to €540 million.

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For 2023, Mercadona has earmarked €1.1 billion for investments, of which €280 million will be used in Portugal to open new stores, mainly in central Portugal.

Plans also foresee the construction of a new logistics base in Almeirim, its second in Portugal and the largest in the entire chain. The project is worth €200 million and due for opening in 2024.

© 2023 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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