Although Eurocash Group has increased sales, it is still not making a profit. Frisco is growing 43 percent.

  • Eurocash Group’s sales revenue in the first quarter of 2022 reached 6.53 billion PLN, an increase of more than 12% compared to the same period in 2021.
  • The group was in the first quarter. 50 million PLN net loss. Bstrata was 71 million PLN less than the previous year.
  • Significantly higher sales were achieved in each distribution format of the wholesale segment, sales in the retail segment increased mainly due to the acquisition of the Arhelan network, and sales growth in the Projects segment was provided by further expansion of Frisco and Dui Ben.
  • At the end of the first quarter of 2022, the network of small supermarkets built by Eurocash Group consisted of 1554 stores.
  • Frisco e-supermarket (fully consolidated since June 2020) recorded a sales increase of more than 43% and the value of sales during the period under review reached 97.5 million PLN.
  • The EBITDA of the Projects segment remained negative due to continued investment in innovative retail formats and the cost of expanding the Frisco and Dui Ben network: in the first quarter of 2022, it amounted to PLN -18 million compared to PLN -11 million. In the relevant period of 2021.

Eurocash increases market share

– The first months of 2022 continued the positive trends observed in the second half of last year, ie the return of consumers to local independent stores, returning to the pre-pandemic normal situation. According to Nielsen, the small format, which includes stores with a so-called selling price of up to 400 m2, increased by 5.4% year-on-year in the first quarter of this year. Eurocash Group’s sales increased by 12.3%, proving its growing market share. It also improves other business parameters, including profitability ratios. In the first quarter of 2022, the Eurocash Group created a significantly higher EBITDA in both the wholesale and retail segment, where the first fruits are the difficult decisions made last year to close some stores, and we see the potential for further improvement here – Eurocash Group President Paweł Surowka said.

– Despite the challenges facing our industry and the economy as a whole, we look forward to continued growth in the coming quarters. The factor that helped sales in the second quarter was that Easter fell in the second half of April this year and early in 2021, so most of our customers made larger purchases at the end of the first quarter. . Well, sunny weather is also a good forecast for the whole industry. sale of drinks – added Paweł Surówka.

Clear improvement in wholesale

In the first quarter of 2022, foreign sales of goods in the wholesale segment by Eurocash Group amounted to 4.67 billion PLN, which is 11.5% higher than the same period last year. The wholesale segment of EBITDA increased by 26.5% during the period under discussion to 149 million PLN.

– In the first quarter of this year, we recorded a significant increase in sales for each format of wholesale sales. Associated franchisees at Euro Sklep, Groszek, Lewiatan and Gama, and entrepreneurs running the smallest stores in the ABC chain, which are key customers of Eurocash Cash & Carry, which suffered the most from the pandemic a year ago, are doing very well. Cash & Carry’s comparable sales dynamics (LFL), which grew to 12% in the first quarter of this year, from a 12% decline in the first quarter of last year, is a confirmation of a strong rebound, Jacek said. Owczarek, Member of the Board and Chief Financial Officer of Eurocash Group.

At the end of March 2022, Eurocash Dystrybucja’s customers included Lewiatan, Euro Sklep, Groszek and Gama (PSD), a total of 5,617 affiliated partner and franchise stores, and 8,720 stores in the ABC network organized by Eurocash.

Retail: a significant improvement in profitability

In the first quarter of 2022, sales of goods in the retail segment by Eurocash Group amounted to 1.66 billion PLN, an increase of 12.4% compared to the first three months of 2021. 44.8% y / y, 52 PLN million, while the segment’s EBITDA increased. Thus, EBITDA’s profitability increased from 2.4% to 3.1% compared to the previous year.

– The increase in sales in the retail segment is mainly the result of the completion of the acquisition of the Arhelan chain in November last year. It increased Eurocash Group’s revenues by 141 million PLN in the first quarter of this year. Delikatesy Centrum’s 50 sales losses from the closure of its stores were offset by increased LFL sales. This had a positive effect on the profitability of the segment. Our own stores still lag behind our franchisors and joint ventures in terms of efficiency, especially in terms of sales value per square meter of store, which in turn proves the potential for further business improvement. results in this segment – commented Jacek Owczarek.

The small supermarket chain built by Eurocash Group at the end of the first quarter of 2022 consisted of 1,554 stores, including 1,514 stores operating under the Delikatesy Centrum brand (944 of which are franchise stores and 570 are private or joint venture stores). . Eurocash Group’s retail segment also includes 410 Inmedio media outlets (as of March 31, 2022).

Frisco and Big Ben continue to expand

In the first quarter of 2022, sales of the Project segment amounted to 168 million PLN, which is an annual increase of 42%. The largest contributor to this growth was Frisco e-supermarket (fully consolidated since June 2020), whose sales growth exceeded 43% and reached 97.5 million PLN during the period under review. The Frisco offer is currently available to residents of the Warsaw agglomeration, Wroclaw, Poznan, Krakow, Myślenice, Tri-City, Katowice and Sosnowiec.

Eurocash Group also continues to develop the Duży Ben chain of alcohol stores, which already has 226 stores by the end of March 2022 (204 at the end of 2021 and 129 at the end of 2020). In the first quarter of 2022, sales of this network amounted to 53.4 million PLN, an increase of 9% year-on-year in LFL sales.
The EBITDA of the Projects segment remained negative due to continued investment in innovative retail formats and the cost of expanding the Frisco and Dui Ben network: in the first quarter of 2022, it amounted to PLN -18 million compared to PLN -11 million. In the relevant period of 2021.

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