Colruyt Group has seen its turnover grow 3.4 % to 9.493 billion euro in its fiscal year 2016/2017. Thanks to the sale of its French food service business Pro à Pro on 1 February, profits also grew.
Increased market share
The profit results offer a varied image: Colruyt Group’s EBITDA grew 3.3 % to 743.7 million euro, but its EBIT dropped 2.7 % to 493.3 million euro and its net profit grew 4.6 % to 382.2 million euro. However, that net profit growth was entirely thanks to the Pro à Pro sale, which generated 19 million euro. Excluding that sale, net profit dropped slightly compared to the year before. Increased price pressure also lowered the group’s margins in the second half of its fiscal year and increased competition from Ahold Delhaize, Lidl and Aldi’s also worries analysts.
The group's Belgian market share grew 0.2 % to 31.7 % across of its chains Colruyt, Okay and Spar. Separately, its Colruyt turnover grew 1.4 % in Belgium and Luxembourg and even 5 % in France. Okay, Bio-Planet and Cru generated an 11.5 % turnover increase, mainly thanks to new stores (9 for Okay, 5 for Bio-Planet and 2 for Cru) and higher prices.
No eCommerce results
Dreamland and Dreambaby’s combined turnover dropped 3 %, largely due to negative calendar effects as Easter was not part of its fiscal year 2016/2017 for instance. The company did not reveal any eCommerce results and only said that “online sales contributed more to total retail turnover and the company continued to invest in its online channels.”
Turnover in wholesale and food service grew 6.4 % to 1.669 billion euro. Shipments to independent Spar stores, part of Colruyt Group Belgium’s Retail Partners, and Coccinelle, CocciMarket and Panier Sympa in France are all part of this division.
Retail Partners Colruyt Group, comprised of the collaborations with Spar entrepreneurs, Alvo shipments, independent Mini Markets and independent retailers, kept its turnover levels stable. Looking at the competition, franchisees are often an important source of turnover growth.