Discount Retail Chain Biedronka (owned by Jeronimo Martins) achieved sales of EUR 10.6 billion (US$12.7Bn). In PLN, sales increased by 10.3 percent year-on-year, and LfL increased by 7.8 percent. This year, the chain wants to open a total of 100 net stores. Biedronka with subsequent growth From January to September, Biedronka in the local currency increased sales by 10.3%, including LFL by 7.8%. Converted into euro, sales amounted to EUR 10.6 billion (US$12.7Bn) and were 7.3% higher than in the previous year. In the third quarter, sales in local currency increased by 11.2%, while LFL sales increased by 8.1%. In Euro terms, sales were € 3.6 billion (US$4.3Bn), an increase of 8.1% over the third quarter of 2020.
Biedronka's EBITDA reached EUR 972 million (US$Bn1.2), an increase of 6.4% year-on-year (+ 9.4% at a constant exchange rate). The EBITDA margin was 9.1% compared to 9.2% in the 9-month period of 2021. Good LFL sales results, effective margin management and operational efficiency allowed Biedronka to ease the pressure of the retail tax introduced in January 2021 assesses the network in the report.
Biedronka: We are successfully resisting inflation Biedronka reminds that food price inflation in Poland gradually increased from 0.6% in the first quarter and 1.6% in the second quarter to 3.8% in the third quarter, reflecting an increase in sales of prices in several food categories.
Biedronka maintained the position of the price leader and the intense promotional dynamics, which resulted in a consistently lower basket inflation than the average food inflation in the country for the entire 9-month period. The chain has implemented a strong commercial program, including promotions and innovative in & out campaigns, while continuing to improve its core offer and chain of stores, the report reads.
New stores During the first 9 months of 2021, Biedronka opened 75 stores (59 net connections) and rebuilt 232 locations.
To protect profitability, the Company counts on strong sales dynamics, ongoing efficiency projects and creativity in the continuous improvement of its offer. Biedronka's presence on the market will be strengthened in 2021 by approx. 100 new net stores and approx. 300 renovated locations, the report reads.
At the end of September, the Biedronka chain consisted of 3,174 stores. CAPEX for the entire year 2021 will amount to approx. EUR 650 million (US$780Mn), of which approx. 60% will be allocated to Biedronka.