Spanish retailer Eroski has posted profits of €14.8 million for the first half of its financial year.
The group posted revenue of €2.31 billion for the period, boosted by an increase in sales in the Basque Country, Navarre, Galicia and the Balearic Islands; the most recent regions in which the retailer's 'Contigo' business model has been rolled out.
The group invested around €38 million in its estate during the period, with some 52 supermarkets being remodelled and 26 new stores opening: two company-owned outlets, 20 franchise operations, three sports stores and a gas station.
The group said that as a result of these new openings, and the ongoing transformation of stores to the 'Contigo' model, it has created 203 new jobs since the start of its financial year.
Debt Reduction
Eroski also continued with its financial debt reduction plan during the period, and amortised €83 million during the period, meaning it has reduced its financial debt by €1.48 billion since the start of the economic crisis.
It said that it is currently negotiating a new financial deleveraging plan commencing August 2019, with the objective of achieving a balanced liabilities structure in 2024.
Eroski rolled out approximately €134 million worth of offers and promotions to members of its Eroski Club, Caprabo and Forum Sport cards in the first half of the year, 10% more than in the same period last year, it said.
Eroski operates a network of 1,651 establishments (across both company owned and franchise stores), including supermarkets, hypermarkets and cash & carry; as well as gas stations, opticians, travel offices and sports equipment stores.
© 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.
