Despite sharp rise in profits, Colruyt remains cautious

Last financial year, Colruyt Group realised a strong increase in revenue and profit. Nevertheless, the retailer remains cautious: its market share has recently come under pressure due to increasing competition, high promotional pressure and Sunday openings at Delhaize.

Continuing price pressure

Colruyt Group’s revenue rose by 11.9% to 10.8 billion euros last financial year. Operating profit rose by 67.2% to 470 million euros and net profit by 78.1% to 357 million euros. This means the group is doing a lot better than its own forecasts. The strong figures are due in part to food inflation and the full consolidation of Newpharma and Degrenne Distribution, to the sale of wind energy subsidiary Parkwind, but also to a rising market share.

Indeed, Colruyt Lowest Prices, Okay and Spar saw their market share rise from 30.5% to 31.2%. But since the start of calendar year 2024, that market share has been under pressure, partly due to a higher comparison base: last year, the retailer was able to benefit from strikes at Delhaize. This year, the retailer sees ‘an increase in the number of independents open on Sundays’, without mentioning Delhaize by name. Price and promo pressures also persist.

On the non-food side, total retail sales rose 51.5% thanks to the full consolidation of Newpharma. Bike Republic did 6.1% better, The Fashion Society 10.5% and Jims 25.7%. The group’s online sales, accounting for 8% of retail sales, came mainly from Collect&Go and Newpharma. Colruyt Group remains very cautious in its outlook: this year, the retail group wants to match last financial year’s performance.