Italian supermarket chain Esselunga achieved total sales of €7.9 billion in full-year 2018, an increase of 2.1% compared to the €7.7 billion the retailer reported in 2017.
The sales increase was achieved by "maintaining competitive prices" despite a challenging marketing environment, which saw a drop in consumer demand in the second half of the year.
E-commerce sales exceeded €236 million (+28%) and now account for 3% of total sales at the retailer.
As of 31 December 2018, the net debt was reduced to €436 million (€848 million at the end of 2017) thanks to a strong cash flow.
Full Ownership
Elsewhere, Giuliana Albera and Marina Caprotti, who own 70% of Esselunga, the second wife and third-born of late founder Bernardo Caprotti, have expressed interest in taking full control of the retail group.
The pair are investigating the purchase of the remaining 30% shares of parent company Supermarkets Italiani, in the hands of Giuseppe Caprotti and Violetta Caprotti, the two children Bernardo had from his first marriage.
The purchase price will be determined by independent third-parties and it is possible that a material portion of the purchase price to be paid by shareholders may be funded by raising third party financing.
The minority share could be worth €1.2 billion, given Esselunga's overall rating of €4 billion.
Esselunga operates a network of 158 superstores and supermarkets in the Italy’s Lombardy, Tuscany, Emilia Romagna, Piedmont, Veneto, Liguria and Lazio regions.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine.
