Eurocash in the 4th quarter of 2021 EBITDA profit was 269.73 million PLN, EBIT profit was 95.18 million PLN – Inwestycje.pl

The company said in a report that Eurocash recorded a consolidated EBITDA of 269.73 million PLN in the 4th quarter of 2021, compared to a profit of 223.52 million PLN a year earlier.

In mid-March this year. Presenting the preliminary estimates, Eurocash reported a consolidated EBITDA of 269.7 million PLNs with revenue of 6.873 million PLN in the 4th quarter of 2021.

The group’s operating profit for the fourth quarter of last year was 95.05 million PLN, up from 82.05 million PLN a year earlier.

Consolidated sales revenue in the fourth quarter of 2021 amounted to 6,873.1 million PLN compared to 6,282.08 million PLN a year earlier.

In all, in 2021, the company had a consolidated net loss of 113.57 million PLN for the parent company’s shareholders compared to the 43.1 million PLN profit a year earlier, and an annual sales revenue of 26,281.43 million PLN compared to 25.398 million PLN. earlier.

Total consolidated net loss was 99.34 million PLN compared to profit of 49.36 million PLN a year earlier.

Eurocash Group’s net loss reached 99.34 million PLN. The reported losses were mainly related to the results of the retail segment and the project segment. The following one-off events affected the amount of damage:

• Impairment loss due to the effect of reducing the scope of lease agreements in the amount of 64.3 million PLN due to the closure of 50 private stores;

• Deletion of the right to use selected real estate in the retail segment in the amount of 8.3 million PLN;

• Impairment loss of Rs 16.7 crore on selected real estate and non-current assets in the project segment.

The total amount of write-offs was 89.3 million PLN, ”the management report reads.

Eurocash Group’s sales revenue in 2021 amounted to 26,281.43 million PLN, which is 3.48% more than the previous year. This increase was due to improved sales in all business segments. Eurocash Group’s total margin in 2021 decreased by 0.19 percentage points. y / y and 12.97%, the report also said.

In 2021, EBIT profit was 97.53 million PLN compared to 231.71 million PLN a year earlier, and EBITDA result was 708.16 million PLN compared to 785.23 million PLN a year earlier.

After taking into account the normalized EBITDA in 2021, ie deletions in the retail segment, according to the release of the results, it was at the same level as the previous year and amounted to 782 million PLN.

“2021 has been extremely demanding for independent retailers, key customers of the Eurocash Group. Consumers who were left out of their daily work due to locks and remote work and worried about the physical and financial consequences of the pandemic, adjusted their purchasing behavior accordingly, preferring less frequent and larger purchases. As a result, we have witnessed a general transition of consumers from the independent market to discounts. We have clearly felt the impact of the pandemic in our own stores, where Mila stores continue to interact with the Delikatesy Centrum network and longer than expected. This required tough decisions, such as closing the top 50 best-selling stores, to focus efforts to develop the rest of the chain. Therefore, we are relieved to see that these decisions are bearing fruit for the first time, “President Pavel Surovka said in a press release.

He stressed that, most importantly, the “partial transition” of consumers from independent stores to discounts observed during the pandemic was only temporary and returned to the previous normal state in favor of an independent market.

In 2021, the foreign sales of goods in the wholesale segment by Eurocash Group amounted to 19.25 billion PLN, which is 2% higher than the previous year. The decline in sales at Cash & Carry wholesalers was offset by the Eurocash Dystrybucja (delivery with delivery to the customer) and Eurocash Serwis (sale of cigarettes and pulse products) formats. In 2021, the wholesale segment EBITDA exceeded 668 million PLN, which means an annual growth of 6%.

“In the first half of last year, an unfavorable market environment affected key small stores, including those included in the ABC chain, Cash & Carry’s main customers. However, the end of the year caused a strong response in this format as well. As a result, Cash & Carry’s similar sales dynamics grew by more than 5% in the fourth quarter, down from more than 12% in the first quarter, ”said Jacek Owczarek, board member and chief financial officer of Eurocash Group.

In the fourth quarter of 2021 alone, the total foreign sales of goods in the wholesale segment increased by 6% year-on-year to 4.95 billion PLN, while the segment’s EBITDA increased by more than 12% year-on-year to 191 million PLN.

At the end of 2021, the ABC network, organized by Eurocash, consisted of 9,149 stores (compared to 9,317 stores a year earlier). The number of affiliates and franchise stores in Lewiatan, Euro Sklep, Groszek and Gama (PSD), Eurocash Dystrybucja’s customers, totaled 5,570 outlets, an increase of 319 stores per year.

Sales of retail goods by Eurocash Group in 2021 amounted to 6.38 billion PLN, an increase of about 5% year on year, while in the fourth quarter of last year alone it exceeded 1.76 billion PLN. 14% more than last year.

“As announced, in the fourth quarter we closed 50 of our stores, which performed the worst on the market and did not promise continued improvement in the results of previous corrective measures. These stores reduced last year’s EBITDA in the retail segment by more than 15 million PLN, and the closure by more than 64 million PLN. These were one-time events that would not adversely affect our results in the future. Already in the fourth quarter, the positive effects of the changes and the rest of Delikatesy Centrum – have improved on their own and franchising results. As a result, in the last quarter of 2021, the normalized EBITDA y / y of the retail segment increased by 28% to 125 million PLN. In addition, taking into account the results of the Archelan chain, which we began to consolidate in the fourth quarter, the total EBITDA of the segment reached about 130 million PLN, “said Owczarek.

In 2021, the normalized EBITDA of the retail segment amounted to 284 million PLN compared to 318 million PLN a year earlier.

The network of small supermarkets built by Eurocash Group at the end of 2021 includes 1,608 stores, including 1,569 stores operating under the Delikatesy Centrum brand (966 of which are franchising stores and 603 are private or joint venture stores).

The Eurocash Group’s retail segment also includes 417 Inmedio media outlets (as of December 31, 2021). Last year, their sales exceeded 486 million PLN, which is 9% higher than the previous year.

“Sales of the Project segment in 2021 amounted to 533 million PLN, which is 77% higher than in 2020, and in the fourth quarter of last year alone it amounted to 163 million PLN, which is an annual increase of 39%. The increase is mainly due to the further expansion of the Frisco e-supermarket (fully consolidated since June 2020). In the fourth quarter of last year, after Warsaw, Wroclaw, Poznan and Krakow, Frisco introduced e-shopping to residents of Tricity, Katowice, Myślenice and Sosnowiec. LFL sales in the Warsaw market – the first and largest of the Frisco markets – rose 16% last year, “he said.

Eurocash Group is also developing a network of Duży Ben liquor stores, which at the end of 2021 had 204 stores compared to 129 a year earlier. Last year’s sales of this chain exceeded 250 million PLN with an increase of 11% y / y in LFL sales.

Due to continued investment in innovative retail formats and the above-mentioned costs of expanding the Frisco and Duży Ben network, the EBITDA of the Project segment remained negative: in 2021 it was -44 million PLN compared to -33 million PLN in 2020, in the release. was written.

Independently, net profit in 2021 amounted to PLN 137.01 million compared to PLN 110.22 million a year earlier.

Eurocash Group is the largest Polish company engaged in the wholesale of fast food, household chemicals, alcohol and tobacco products. It also offers marketing support for independent Polish retailers. Eurocash-supported franchise and partner networks include about 16,000 independent stores operating under brands such as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep, Gama, Duży Ben, as well as Kontigo and Koliber. The company has been on the WSE list since 2005.

Source: ISBnews

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