EROSKI closed 2019 with an operating result f 193.8 M euros

The EROSKI Group has closed their 2019 accounts with an year-end profit of 45.2 million euros, which is an increase by 43.6 millions compared to 2018.

In the same positive line, the operating profit continued improving in 2019, for the ninth consecutive year, up to 193.8 million euros, the best operating result in the history of the EROSKI Group in relation to sales. Their ebitda also improved and grew by 12.9 million euros to reach 263.6 million euros. This positive evolution was mainly due to their achievements in various projects aimed at improving efficiency and productivity and to the transformation and renewal of the commercial network.

Openings & Transformation

Throughout 2019 the EROSKI Group continued with the plan to transform the commercial network to their established “Contigo” (Spanish for “with you”) model which characterizes their new-generation stores.

Already 845 stores have undergone the transformation, which means they represent over 80% of the food sales of the group. The gross sales amount to 5,266 million euros, 2.4% less than in 2018, a drop which was mainly due to the reduction in perimeter carried out in the hypermarkets. Worthy of note is the sales increase in all the regions in which the network has been transformed to the “with you” commercial model; particularly remarkable is the 1.92% rise in sales in the regions which have a widely transformed network (Basque Country, Navarre and Galicia).

As a result of the good performance of this model, EROSKI has reinforced their leadership in the North-Central and North West areas, where they have focused the transformation of the network so far, supplemented with the opening of stores of their own as well as franchises which consolidate their position. To be precise, the group opened 74 new stores in 2019, including franchises and stores of their own–61 supermarkets, 1 petrol station, 6 travel agencies, 5 leisure and sports shops and 1 Cash&Carry. EROSKI is the second food distributor in the north of Spain-Galicia, Asturias, Cantabria, Basque Country, Navarre, Aragon, Catalonia and the Balearic Islands– with a share over 13%.

In 2019, EROSKI reduced their financial debt by 263million Euros, which involves a reduction by about 1,900 million Euros since 2010. Last July 2019 EROSKI reached a refinancing agreement with banks on advantageous terms, whose valuation has been duly recorded in the annual accounts. The application as from 2019 of the modification of the International Standard (IFRS16) on leases has had an effect both on the operating account, reflected in financial expenses and redemptions, as well as in the tangible fixed assets and financial liabilities of the balance, as the implicit rights of use in lease contracts are recorded.

EROSKI has 6 million Member Partners, who hold EROSKI Club, CAPRABO and FORUM SPORT cards. During 2019, the group transferred 308 million Euros in savings to their customers through increasingly personalized offers and promotions.

EROSKIS.COOP.,  72.3 million Euros of profit

As for the parent cooperative EROSKIS.COOP., they continued with the positive results of the last years and closed 2019 with a profit of 72.3 million Euros, 58.4 million more than in 2018. Their sales also grew up to 1,772 million Euros, which involves a 1.8% increase as compared to the previous year.

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