Romanian food retailer Profi has reaffirmed its strong growth trajectory of recent years, reporting an 11% annual increase in revenue in 2023, to RON 12.9 billion (€2.6 billion).
This follows on from an impressive 22% increase in 2021. This consistent growth builds on a five-year compound annual growth rate (CAGR) of 16%.
Net Profit Performance
Net profit dropped from a negative RON 286 million (€57 million) in 2022 to a negative RON 213 million (€43 million) in 2023.
Commenting on the group's profit performance in a post on Linkedin, Profi's CFO, Andrei Bica, said, "As mentioned every year, for us the net profit is not significant, being influenced by the specific factors of a company that has gone through successive waves of M&A."
Profi's commitment to growth is further highlighted by its store expansion in 2023. The retailer opened or remodelled 160 stores, with 87 being brand new locations – the highest number in modern Romanian retail.
This expansion was achieved while maintaining a strong and stable cash position, even after repaying hundreds of millions in bank debt during the year.
The true measure of Profi's business performance can be seen in its IFRS EBITDA performance – this metric saw a 17% increase in 2023 compared to the previous year, reaching RON 690 million (€139 million).
Profi Network
Profi’s network consists of over 1,713 stores across nearly 850 Romanian cities and villages. It caters to its 1.2 million daily customers through four store formats – Profi Super, Profi City, Profi Go, and Profi Loco.
Last October, Dutch retail group Ahold Delhaize acquired Profi from MidEuropa Partners for €1.3 billion. Romania’s Competition Council is currently investigating the proposed deal, with a decision likely later in the year.
