Reitan Retail has reported a decline in profit for its 2023 financial year, however store sales increased compared to the previous year.
The Norway-based group, which operates the REMA 1000 chain, reported a near-4% decline in operating profit to NOK 3.3 billion (€280 million), from NOK 3.5 billion (€300 million) in 2022.
Operating margin before tax and financial items was 2.4%, down from 3.1% in the previous year.
The company's store sales increased by 10.29% during the financial year, to NOK 127.7 billion (€10.8 billion).
Ole Robert Reitan, chief executive officer of Reitan Retail commented, "Given the uncertain market conditions last year and the non-recurring effects affecting the figures, I am pleased with the underlying operations and results for the year."
The company noted that it invested NOK 2.4 billion (€200 million) in its retail operations during the financial year, creating around 2,000 new jobs.
Reitan Retail
Reitan Retail operates in seven countries in the Nordic and Baltic regions, and, on average, more than 23 customer transactions are carried out in its system every second, all year round.
Its biggest business areas are REMA 1000 Norway and REMA 1000 Denmark, which together operate around 1,100 discount stores.
Reitan commented, "In Norway, REMA 1000 is winning important price competitions and steadily gaining new market shares, while at the same time working hard to consolidate its position as Norway's cheapest and best grocery retailer.
"In Denmark, we are currently opening one to two stores a week, and I'm impressed by our Danish colleagues, who have managed to make REMA 1000 the strongest brand in Denmark."
Annual Highlights
The company noted that it was 'pleased' to see the results of the implementation of measures to improve the Reitan Convenience business.
It is now focusing on improvements in Norway and Finland, in particular, it added.
Uno-X Mobility, one of the four business areas of Reitan Retail that offers sustainable mobility solutions, witnessed solid underlying operations in 2023.
Reitan added, "We will wear the yellow leader's jersey for the development of charging networks for electric heavy transport, and we are investing heavily in both Norway and Denmark.
"At the same time, we are continuing to roll out the charging network for passenger cars. Such ambitions require investments, which we are already well underway with."
