Norgesgruppen, which operates the Kiwi, Joker and Meny chains among others, has posted a 6.8% increase in operating revenue for full year 2017.
The Oslo, Norway-based group posted sales of NOK 85.6 billion last year (€9 billion), which was up from NOK 80.1 billion a year earlier (€8.43 billion).
In its annual report, the company said that despite 'tough price competition' and margin pressures, it has been able to maintain a strong EBTIDA level, which stood at NOK 5.24 billion last year, compared to NOK 4.85 billion a year earlier.
"Our ambition is to be the customer's first choice, and to run a profitable retail operation in a sustainable way," said Runar Hollevik, the company's chief executive. "The results, both financially and in terms of health, environment and diversity, show that we are just doing that - creating sustainable growth."
Rapid Growth
The retailer said that it grew three times faster than the market average last year, according to Nielsen data, posting growth of 3.1% in the market that grew by 1.1%.
It invested around NOK 3 billion last year in its operations, focusing on store improvements, development of an e-commerce platform, and boosting its environmental credentials, including the opening of a new refrigerated warehouse last year.
In the report, the company also noted that border trade has had an impact on the Norwegian grocery market in general, growing by 23.4% last tear, according to SSB Statistics Norway and Menon Economics. In addition, some six out of ten Norwegians have bought groceries in Sweden last year, due to currency exchange rate changes.
Tackling Food Waste
The company's annual report also detailed the efforts Norgesgruppen is making with regard to environmental concerns, with a 19% reduction in food waste among the company's main achievements last year.
This forms part of an initiative to achieve a 50% reduction in food waste by 2025.
"We are very pleased with this development," said Hollevik. "Too much edible food goes to waste. This is an ethical and environmental problem that we are going to help solve."
The company has signed parternship agreements with food banks and redistribution charities in order to reduce its food waste, while this year will also see the introduction of a new functionality in the company's supply chain that will enable it to locate goods that are about to expire.
Where food is not salvageable, Norgesgruppen is committed to channeling it towards the production of animal feed or biogas.
"In 2017, 84% of food waste went to animal feed or biogas, the target is 100% by 2020," Hollevik added.
© 2018 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.
