Spanish retailer Mercadona has reported a 15% increase in sales, to €35.5 billion, in its 2023 financial year.
Out of this total, Mercadona generated €34.1 billion in Spain and the remaining €1.4 billion in Portugal, where it operates around 49 stores, the company noted.
The company said its performance was boosted by its long-term strategy of investing for the benefit of various stakeholders.
Implemented in 2016, investment in this strategy has reached €10 billion in the last seven years, including €1.1 billion in 2023.
The company has renovated and upgraded more than 1,350 supermarkets to its new efficient store model (Store 8) concept.
Mercadona plans to invest €5 billion in the next five years, including €1.1 billion in 2024, to expand its business in Spain and Portugal.
Net profit for the full financial year amounted to €1 billion, accounting for 3.1% of sales, while EBITDA increased to €1.9 billion, from €1.6 billion in 2022.
Annual Highlights
Mercadona's market share increased by 0.6 percentage points in Spain, to 27.6%.
The company attributed this performance to its efforts to offer quality products at an affordable price, with more than 1,000 price reductions implemented in April 2023 and February 2024.
The retailer generated 5,000 new jobs in 2023 – 3,200 in Spain and 1,800 in Portugal – to take its total number of employees to 104,000.
It also increased wages by 3.1% in Spain and 1.4% in Portugal to help employees battle inflation.
Mercadona has achieved a significant reduction in emissions, with a decrease of 38% from 2015 to 2022 in both direct emissions and the removal of greenhouse gases.
In the past year, Mercadona allocated €42 million towards the addition of 224 new photovoltaic installations.
Mercadona's tax contribution in Spain and Portugal for the financial year 2023 amounted to €2.6 billion, with VAT seeing a 17% increase to €487 million.
