Wibra posts higher profit despite declining turnover

Shutterstock.com

Due to the Covid crisis and - to a lesser extent - Wibra's bankruptcy in Belgium, the company recorded a somewhat declining turnover in 2020. However, they realised a slightly higher profit.

 

Impact of lockdowns

Ron Wierdsma's discount formula realised 125 million euros in sales during the Covid-year, compared to 136 million euros the year before. The decline was mainly due to the Covid measures: the Dutch stores had to deal with two lockdowns. Remarkably, the profit of 1.6 million euros was slightly higher compared to 2019. According to Quote, Wibra managed to increase profitability by purchasing items even more cheaply.
 

The Belgian division of the retailer was declared bankrupt in October last year. A day later, the company made a restart with 36 of the 81 stores. However, the bankruptcy would have had only a minor impact on the company.
 

Nevertheless, the second lockdown in December 2020 could still have a financial impact. After all, Wibra was left with a mountain of Christmas items. In its annual report, the retail chain says that the supply of these 'seasonal items' will possibly increase further.