In the first quarter of 2022, Eurocash suffered a net loss of 51.71 million PLN, EBITDA – 151.02 million PLN – Inwestycje.pl

In the report, Eurocash noted that the consolidated net loss attributable to shareholders of the parent company in the first quarter of 2022 was 51.71 million PLN, compared to a loss of 70.46 million PLN a year earlier.

Operating profit was PLN 1.66 million against PLN 33.62 million a year earlier.

The EBITDA result was in the first quarter of this year. A year ago, the margin was 151.02 million PLN compared to 115.93 million PLN, and the EBITDA margin was 2.31% compared to 1.99%.

Consolidated sales revenue in the first quarter of 2022 amounted to 6,527.89 million PLN, compared to 5,812.1 million PLN a year earlier.

In the first quarter of 2022, the consolidated total sales margin was 13.92% and increased by 1.14 percentage points. Compared to the first quarter of 2021, the report says.

“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 by 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, “said Paweł Surówka, CEO of Eurocash Group, citing the results.

“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 made difficult decisions to close some stores last year, and we see the potential for further improvement here,” he added. hit.

Wholesale segment EBITDA in the first quarter of 2022 amounted to 148.96 million PLN, an increase of 26.5% year on year. According to the report, the retail segment of EBITDA in this period amounted to 51.86 million PLN, compared to 35.82 million PLN a year ago (an increase was due to better results of its stores).

“Despite the challenges facing our industry and the economy as a whole, we hope that growth will continue 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, ”Surówka said.

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.

In the first quarter of 2022, LFL sales dynamics for a fixed number of Eurocash Cash & Carry discount wholesalers was 13.7%.

“In the first quarter of this year, we saw a significant increase in sales in all wholesale distribution formats. 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, “said Jacek. director.

At the end of March 2022, the total number of affiliated partner and franchise stores in Lewiatan, Euro Sklep, Groszek and Gama (PSD), Eurocash Dystrybucja’s customers, was 5,617 outlets, and the ABC network was organized by Eurocash. It consisted of 8720 stores.

In the 1st quarter of 2022, sales of goods in the retail segment by Eurocash Group amounted to 1.66 billion PLN, an increase of 12.4% per year.

Eurocash wholesale sales to Delikatesy Centrum franchise stores increased 2.1% on an LFL basis. On the other hand, the retail sales of Delikatesy Centrum franchise stores in terms of LFL reached 6.1%, 2.7% for private stores and 10.1% for joint ventures. The report says that in the first quarter of 2022, the sales dynamics of a fixed number of Inmedio stores amounted to 13.55% per annum.

“The increase in sales in the retail segment is mainly due to the completion 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 stores are still lagging 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 improvement of results. this segment, ”Owczarek said.

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 franchising 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).

In the 1st quarter of 2022, sales in the Projects segment amounted to 168 million PLN, which is an annual increase of 42%.

“The largest share in this growth was the Frisco e-supermarket (fully consolidated since June 2020), which exceeded sales growth by 43% and reached 97.5 million PLN in the period under discussion. Frisco’s offer is already available to residents of the Warsaw agglomeration, Wroclaw, Poznan, Krakow, Myślenice, Tricity, 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 annual increase of 9% in LFL sales.

“EBITDA of the Projects segment remained negative due to investment in innovative retail formats and the cost of expanding the Frisco and Dui Ben network: in the first quarter of 2022, it was -18 million PLN compared to -11 million PLN in the corresponding period. The period of 2021. ” – It is also written in the information.

Independently, net profit from ongoing operations in the first quarter of 2022 amounted to 33.98 million PLN, compared to a loss of 16.81 million PLN a year earlier.

Eurocash Group is the largest Polish company engaged in the wholesale of food and other consumer goods (FMCG). Works more than 90 thousand. 70 thousand customers. They are independent entrepreneurs who run local retail stores in Poland. Eurocash Group is also the organizer of franchise, agency and partner networks such as ABC, Groszek, Lewiatan, Euro Sklep, Gama, Duży Ben. Based on its franchise and capabilities, the company is developing Delikatesy Centrum, Poland’s largest supermarket chain.

The company has been on the WSE list since 2005.

Source: ISBnews

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