Saturday, June 10, 2023

Eroski cut its profits by 40% due to the impact of cost overruns associated with inflation

Close the accounts for 2022 and positive results but confirmation that there price crisis he carried away a good part of his benefits. It Owner of the Basque cooperative group in Caprabo It entered about 5,500 million euros last year, 7% more than the previous year, but earned 64 million euros, practically 40% less than in 2021.

The company attributed this cut was supposed to be a part of increasing prices in the food chain had to spend more on rental, transportation, and personal departure since, in fact, no matter how much the bill went up as a result of the more expensive product, its sales fell by around 2%.

“We got a lower profit than the previous year because of that price increase not normalization of financial results and, above all, by the decision to reduce our margins to win the prices and increase promotional activities,” the company said in a statement. CEO of Eroski, Caravel rose. This company has explained on several occasions that, like most Spanish chains, it has focused its strategy on the decline of the final price of the cart in specific offers he took the dynamic to the next level a couple of months ago by launching a campaign that suddenly lowered the price of 1,000 products.

Even so, the group feels that it saved the furniture and that, in the words of the board, “2022 was positive despite its complexity.” “Based on that efficiency and productivity improvements applied, we consolidated the positive results; we have increased the market share in reference areas such as Galicia y Baleares we have reversed the trend Catalonia and kept the leadership Navarra and the Basque country“, adds Carabel.

Without going further, the result operates in buying it (the one that has not yet taken into account tax payments and other accounting costs) grew by 10% exceeding 204 million euros.

World Nation News Desk
World Nation News Desk
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