European discount retailer Action delivered sales growth of 20.9% in its first quarter, the chain's private equity owner 3i has said, as the company expands its store network and attracts more people shopping on a budget.
Action sells everything from packaged food and soft drinks to toys, kitchenware, and clothing. It says two-thirds of its products cost less than €2, and it offers 1,500 items for less than €1.
Sales Performance
Action's net sales rose to €3.004 billion in the first quarter, from €2.485 billion a year earlier, and like-for-like sales grew by 9.8%. The chain has stores in 12 European countries, having opened its first store in Portugal in February after adding 303 new stores overall last year.
Action's largest store network is in France, with Germany and the Netherlands also core markets.
3i said Action generated a gross investment return of £3.718 billion (€4.32 billion), or 33%, in the financial year ended March 31.
It delivered annual revenue growth of 28%, like-for-like sales growth of 16.7% and EBITDA growth of 34% in 2023.
'This strong performance supported value growth of £3,609 million for Action in FY2024, in addition to dividends to 3i of £375 million,' 3i noted in its statement. '3i also received proceeds of £762 million from Action via a pro-rata share redemption.'
Investment Decisions
“The shape of today’s portfolio has served us well in this challenging year and reflects investment decisions taken over the last 12 years," 3i chief executive Simon Borrows said in a statement.
"Action’s compelling growth story continues to be a major driver of the group’s return, with overall resilient performance across the remaining portfolio."
Additional reporting by ESM
