Polish wholesaler Eurocash has reported a 1% increase in consolidated sales in the third quarter of its financial year, to PLN 7.03 billion (€1.52 billion).
The group said that sales in its wholesale segment came in at PLN 5.26 billion (€1.14 billion), approximately the same level as last year, while in its retail segment, sales increased by more than 2%.
Consolidated EBITDA for the period was PLN 236 million, which is an increase of 5% on the same period last year, boosted by greater profitability in its wholesale division.
'A Difficult Period For Small Stores'
"The third quarter of this year, like the second quarter, was a difficult period for small stores, which was reflected in the decline in sales at cash & carry wholesalers," commented Jacek Owczarek, financial director at Eurocash Group.
"We achieved higher sales in the Eurocash Dystrybucja format, i.e. in the business targeted at larger stores. The progressive digitisation of our business has translated into further improvement in profitability in our wholesale division."
Owczarek added that more than two thirds of sales (43%) in its wholesale division are now carried out via the eurocash.pl platform.
As of the end of September 2021, the ABC network of stores totalled 9,143 across Poland, while the number of partner and franchise stores under the Lewiatan, Euro Sklep, Groszek and Gama (PSD) chains totaled 5,494 outlets.
Elsewhere, its retail division currently operates 1,594 stores, including 1,565 operating under the Delikatesy Centrum brand, of which 965 are franchise outlets. It also operates 422 Inmedio newsagent outlets.
"Higher sales in the retail segment are mainly the result of improvement in our own supermarkets," said Owczarek. "In terms of efficiency, however, they are still inferior to facilities run by franchisees, which means great potential for the reorganization being carried out."
Lastly, the group's 'projects' segment, which includes the Frisco e-supermarket and Duży Ben off-licence network, saw sales up 22% in the third quarter, to PLN 123 million.
Earlier this year, Eurocash announced the acquisition of a 49% stake in the Arlehan retail chain.