Finnish retailer S Group has reported 11.7% year-on-year growth in operating profit to €499 million in its financial year 2024.
The retail group was boosted by growth in customer numbers and the continued momentum in sales in a challenging market situation.
The retail sales, excluding taxes, at S Group's regional cooperatives, SOK and its subsidiaries increased by 0.6% in January–December 2024, amounting to approximately €14.3 billion.
SOK Corporation generated operating profit (IFRS) of €115 million, driven by S-Bank, which moved up to a new size category as the result of an acquisition, the retailer noted.
Hannu Krook, chief executive officer of SOK, commented, “Our steady development continued in 2024. The challenging general market situation was reflected in price-driven demand and consumer caution.
“Despite the subdued economy, we managed to increase our customer numbers, and our sales momentum remained good relative to the market. We were also delighted by the strong development of all our online stores and the positive customer feedback on our reforms.”
Grocery Trade
S Group's grocery trade division reported a 'strong year' as it outperformed the market with sales growth of 2.7% compared to the previous year.
The company implemented price reduction campaigns in the earlier part of the year as well as at the year's end.
It was also able to offer an affordable shopping cart by improving its product offering.
Moreover, consumer goods trade at Prisma stores also outperformed the general market development amid a challenging operating environment.
The company's online platform S-kaupat.fi saw 18% year-on-year sales growth during the year, consolidating its position among market leaders in Finland.
Its network includes more than 400 delivery locations, with robot delivery options in more than 100 stores.
In the consumer goods trade, the Prisma.fi online store doubled its sales from the previous year.
Annual Highlights
S Group paid bonuses and other cash benefits to co-op members worth €535 million during the year, with the proportion of bonuses reaching a record level of €453 million.
The number of new co-op members joining S Group’s cooperatives exceeded 120,000, setting a new record.
More than 60% of new members were under the age of 35, the company noted.
Krook added, “The growing number of co-op members reflects the appeal of the idea of the cooperatives. We have succeeded in delivering on our promise of an affordable shopping cart and in providing high-quality services that match customers’ needs.
“At the same time, we are an inspiring employer for our people. The results of our workplace community surveys are at a very good level and well above the Finnish general standard.”
The company's investments amounted to nearly €1 billion in 2024, marking an increase of 42% from the previous year.
The money was allocated for various purposes, including, among others, the opening of online grocery shopping collection centres by HOK-Elanto and the Pirkanmaa Cooperative Society, the expansion of the ABC charging network, and S-Bank’s capitalisation for the implementation of the Handelsbanken acquisition.
Outlook
Krook commented, “Our outlook for the current year is reasonably positive, although consumer confidence and purchasing power are recovering slowly. The global political situation also involves uncertainties. However, our focus is longer-term than the quarter. [...]
"Our carbon negativity target for our own operations will be met in 2025, and we are reaching the emissions reduction target of 90% set for 2030 five years ahead of schedule.”
