Belgium's Colruyt Group has reported a slight decline in revenue and operating profit in the first half of its financial year amid a challenging and uncertain macroeconomic environment.
Colruyt's revenue fell by 0.5% year on year, to €5.4 billion, due to reduced food inflation, unfavourable weather conditions and a decline in market share in the company's Colruyt Lowest Prices, Okay, SPAR and Comarkt banners in Belgium, the company added.
Operating profit decreased 4.8% year on year, to €245 million, from €257 million in the same period last year.
The company's operating cash flow (EBITDA) declined by 2.6% to €444 million in this period, accounting for 8.2% of its total revenue.
The company's gross profit margin stood at 29.8% despite the narrowing of the gap between sales price inflation and purchase price inflation since the start of the financial year.
Divisional Highlights
Colruyt's food division saw revenue growth of 0.7%, to €5.2 billion, and accounted for 95.6% of consolidated revenue in the first half of 2024/25.
Excluding the performance of Comarkt and Degrenne Distribution, revenue from the company's food operations decreased by 1.8%.
Revenue of Colruyt Lowest Prices chain in Belgium and Luxembourg, including revenue of Comarkt, declined by 1.9% year on year.
Okay, Bio-Planet and Cru reported an aggregate revenue growth of 1.0%, the company noted.
Colruyt's wholesale business reported revenue growth of 12.8% in the first half.
The company attributed this performance in Belgium partly to the acquisition of Match and Smatch stores.
Revenue from Colruyt Group’s foodservice operations grew 19.4% year on year, with Solucious accounting for most of this total.
Colruyt's health and well-being and non-food operations accounted for 4.2% of its revenue in the first half of its 2024/25 financial year.
Outlook
Colruyt Group has reiterated its previous outlook for the full financial year 2024/25.
The group will continue to focus on driving growth across all operations by investing in making processes more efficient and maximising the management of its operating costs.
The group will also pursue its investments in sustainability and efficiency, digital transformation and innovation, employees and high-quality house-brand products.
