Norway's Reitan Retail, which operates the REMA 1000 chain, has reported a drop in operating profit for 2022, the second consecutive year of decline from record earnings in 2020, as its grocery shops, petrol stations and convenience stores were hit by soaring cost inflation.
The family-owned group, with some 3,800 outlets across the Nordic and Baltic region, in December bet heavily on an expansion of REMA 1000 in Denmark, buying 114 stores from Germany's Aldi for an undisclosed amount.
Profit Declines
Reitan's operating profit (EBIT) for the full year declined by 5% to NOK 3.6 billion (€320 million), from NOK 3.8 billion (€340 million) in 2021 and was down from NOK 4.4 billion (€390 million) in 2020.
System-wide sales for its businesses rose to NOK 116 billion (€10.24 billion) from NOK 104 billion (€9.18 billion) as prices for groceries and petrol rose as part of the general inflation trend, Reitan said.
The company announced in 2020 that it aimed for an initial public offering (IPO), although the family intends to maintain a majority stake. It has not said when a stock market listing may take place.
Read More: Aldi Exits Danish Market, Sells 114 Stores To Norway's Reitan Retail
Uncertainty And Inflation
It said that 2022 was a year in which 'uncertainty and inflation contributed to new challenges' for customers, retailers, merchants, employees and local communities.
"At the same time as we manoeuvred a demanding market, we continued to strengthen and renew the company," commented Ole Robert Reitan, CEO of Reitan Retail. "Our 43,500 colleagues worked purposefully to secure critical value chains for food and energy, while at the same time we developed the company and created the basis for long-term value creation."
Reitan Retail's operations span seven countries and include the REMA 1000 chain of discount grocery stores, REMA 1000, Narvesen, R-kioski, Pressbyrån, Uno-X and 7-Eleven.
Read More: Sustainability In 2023 – Reitan Retail's Monica Ødegaard Talks To ESM
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