Spanish food distribution cooperative Eroski is planning to expand its operations into new markets while carefully managing its growth.
During a press conference in Bilbao, CEO Rosa Carbel said that the company can "take risks now and grow again, but in a sustained way and without rushing".
She added that Eroski aims to reduce the high interest rate (10.625%) on its €500 million bond launched at the end of 2023 and maturing in 2029.
After stabilising its business and significantly reducing its debt, Eroski is now looking to expand beyond its current market in northern Spain.
The company plans to open 70-75 new stores this year, half of them franchises, primarily within its existing market.
In 2026, Eroski will identify new regions for expansion, with new store openings planned for 2027. However, any expansion plans will be contingent on favorable market conditions.
Debt Reduction
Eroski significantly reduced its debt from €3.4 billion in 2009 to €671 million by the end of 2023.
This year, the company expects its debt with financial institutions to remain below €100 million, with the majority of its debt tied to a high-cost bond.
Eroski aims to reduce its debt-to-EBITDA ratio from 2.5 to 2. While aiming for debt reduction, the company recognises the need for some debt to support future growth.
Eroski anticipates that its improved financial standing will allow for better-borrowing terms in the future, potentially as early as 2026.
Product Assortment
Carbel also announced that the company will increase the presence of both private-label and fresh products on its shelves.
Eroski expects the food distribution market to experience growth of 3% in 2025, with inflation remaining relatively stable. The company acknowledges the impact of inflation on consumer spending habits.
Eroski operates more than 1,500 stores, 600 of which are franchised. It has a strong presence in several key regions of Spain, namely Galicia (20.3% market share through a partnership with Vegalsa); Euskadi or Basque Country (35.9%); Navarra (26.8%); and Balearic Islands (20.5%).
The company also has a presence in Catalonia (4.5% market share) and holds a 5.1% market share nationwide.
