Retail

Spain's Eroski Sees Surge In Operating Profit In First Half

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Spanish retailer Eroski has reported a 63% increase in operating profit in the first half of its financial year, to €105.9 million.

The retailer reported a turnover of €2.25 million in the period, which is down on the corresponding period last year, but roughly on a par with what it recorded in the same period in 2019.

If the food business is taken alone, turnover stood at €2.11 billion, a 2.4% increase on the corresponding period in 2019.

At-Home Consumption

“The evolution of sales in the first half reflects the effect that the pandemic has had on consumption of food at home, although the trend of this effect is decreasing," commented Agustín Markaide, Eroski president.

"The results reflect this situation and, although, naturally, they are below those of the same period of 2020, they significantly exceed those of 2019, due to the measures that have been adopted over the past two years, that have resulted in a more efficient network and more attractive stores."

Investment In The Business

During the first half, Eroski invested €48.8 million in its operations, mainly towards the remodelling of 91 supermarkets and opening 32 new stores – 27 of which were franchise operations.

In addition, the group inaugurated a new fresh produce facility in Júndiz, Vitoria-Gasteiz, as it seeks to optimise its fresh supply chain in the north of the country.

In addition, Eroski amortised €75 million in financial debt during the first six months of the year.

Last week, Eroski announced that it was launching a solidarity campaign for those affected by the volcanic eruptions on La Palma. The retailer will donate €0.10 for every kilogram of Eroski Natur bananas, which are sourced from the Canary Islands, that is sold in its stores. It also recently increased its purchase of products from the Basque Country, in which it is located.

© 2021 European Supermarket Magazine. Article by Lucia Baturone. For more Retail news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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