Danish retailer Salling Group has posted full-year sales of DKK 56.7 billion (€7.61 billion) in what the group said was the second best full-year performance in its history.
EBIT was up 4.0% to DKK 2.7 billion at the group, as revenue and earnings rose to 'record levels' in several parts of its business, it said.
Revenue Performance
The group, which operates the Netto, Føtex and Bilka banners, said that revenue was up 1.5% for the year, excluding the activities of Netto Sweden, which it divested in the period.
Netto Sweden was divested for DKK 969 million, it said, while the company also adjusted its administrative costs at the end of 2019 to reflect what it said was a 'new, stable and experienced organisation'.
It paid off a sizeable chunk of its mortgage loans during the year, which means it has now reduced its total debt to a factor of 1.1xEBITDA, which puts it in its strongest position for several years.
It said that it is investing 'aggressively' in a number of growth areas over the coming years, including digital solutions and the expansion of its Netto Poland business, as well as modernisation of its store estate.
'A Strong Year'
"This was a strong year in which progress was driven by our core business both in Denmark and abroad," commented Per Bank, the chief executive of Salling Group.
Netto Denmark delivered its best year in the history of the chain and, like Føtex, achieved its highest ever earnings, Bank added.
"With this development in mind, we can continue to invest in lower prices and a better shopping experiences for customers across our chains, as well as enabling us, together with suppliers and partners, to take even more responsibility for the communities we are a part of."
COVID-19 Response
On the group's response to COVID-19, Netto said that it has initiated 'numerous initiatives' to mitigate the impact of the coronavirus on its personnel and supply chains, and has invested DKK 500 million in ensuring the liquidity of its suppliers.
"We will do everything we can to help our customers through the coming period," said Bank. "None of us have been in a similar situation before, and I would like to thank the authorities for exemplary cooperation so far and the customers for showing consideration and patience."
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
