Belgium's Colruyt Group said that its revenue rose by 2.8% in full-year 2018 (excluding petrol), with the business citing sales price inflation, portfolio expansion and organic growth as influencing factors on its performance.
Revenue for the year was €9.03 billion, with gross profit standing at €2.35 billion. Retail accounted for 82.6% of the group's consolidated revenue.
Gross profit margin was also up, to 26%, from 25.8% the year before.
The group noted that all of its banners 'made a positive contribution' to its full-year sales performance, with the collective market share of Colruyt, OKay and Spar increasing to 31.8% of the Belgian market [2016/17: 31.7%].
Colruyt noted that it posted a margin decline in the first half of the year due to intensified price and promotional pressure, and 'increased promotional activity', but it managed to offset this with a stronger performance in the second half of the year, when the Belgian market was 'less competitive than last year'.
Divisional Performance
The group's Colruyt banner, operating in Belgium and Luxembourg, reported revenue growth of 2.0%, with sales price inflation and increased customer throughput leading to its growth, as well as stronger calendar effect (+0.3%).
Over the past financial year, 16 stores were fully renewed and converted, and 42 stores were given a new 'look and feel', the group added.
Its OKay, Bio-Planet and Cru banners reported an aggregate revenue growth of over 7%, thanks to new-store openings, new customer inflow, and sales price inflation. During the year, the group opened six OKay and three Bio-Planet outlets.
Colruyt's French division posted a 7.8% increase in revenue (excluding petrol), while the combined store revenue of Dreamland and Dreambaby was 3.6% higher than last year, it said.
Wholesale revenue posted a 1.4% increase, to €782 million.
Forecast
Looking ahead to the coming year, Colruyt Group noted that it 'expects the retail market to remain competitive in the financial year 2018/19. The group does not anticipate a significant upturn in the economic climate for the consumer in Belgium in the short term. In France, the group expects a modest inflation and a further improvement of consumer confidence.'
It added that it plans to 'consistently implement' its long-term growth strategy.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
