Spain’s Eroski Group has reported growth in profit and volumes in its full financial year for 2023, with operating profit increasing by more than a quarter (26.9%), to €259 million, compared to the previous year.
Gross sales rose by 6.3%, year on year, to €5.7 billion, despite a 1.2-percentage-point reduction in gross margin due to measures implemented by the company to mitigate passing on higher costs to consumers.
The CEO of Eroski, Rosa Carabel, stated, “In a context in which the strong and constant rise in costs has continued, both for products sold and direct services [...] we closed a year of significant progress and extraordinary performance, with effective management in the face of inflation, where the strategies applied have responded to the current economic challenges.
“To this end, efficiency efforts have been fundamental, with robust progress in cost control and improvement, as well as in productivity and efficiency in our platforms and throughout the supply chain. This optimisation has also enabled us to strengthen Eroski’s position in terms of price and commercial attractiveness.”
Annual Highlights
The company reported an 18% increase in EBITDA, to €331 million, during the year.
Parent organisation Eroski S. Coop. reported sales growth of 16.7%, to approximately €2 billion, during the financial year.
To ease the impact of food inflation on shoppers, Eroski invested €384 million in various commercial initiatives, offers, and personalised and exclusive discounts linked to its loyalty clubs, as well as savings plans and benefits linked to families.
The retailer opened 74 new supermarkets (comprising its own and franchised supermarkets) and one petrol station in 2023.
It expanded its presence in Andalusia, Aragon, the Balearic Islands, Catalonia, Castilla-La Mancha, Castilla y León, Valencia, Extremadura, Galicia, Madrid, and the Basque Country.
The company invested €15 million in innovation and development projects, comprising more than 30 innovation initiatives, including ten European projects with technology centres, universities and start-ups.
