Aerosky reduces its profits to 64 million due to the “price containment” policy | Economy

Cart downsizing and a policy to contain selling price of products caused the Eroski Group to close the 2022 fiscal year with lower-than-expected earnings. The Basque Distribution Cooperative, which includes 1,656 commercial establishments and 9,500 workers, closed accounts last year with a positive result of 64 million euros, compared to 104.6 million obtained in the previous year (39% lower). The decrease was due to the fact that the cooperative assumed 55 million against the result to compensate for the higher prices. “It was positive despite the fact that we had a lower profit as a result of increased costs, and in particular due to the decision to cut our margins to contain prices,” Rosa Karabell, General Manager of Aerosky, stated in a presentation closing accounts as of January 31, 2023.

The past fiscal year has been “complicated” for Irosky. Cost of products sold increased by 15% on average, an increase the cooperative group assumed in part at the cost of reducing its profit margin. Worldwide sales rose more than 7%, to 5,476 million (7% more than in 2021), thanks primarily to the impact of inflation. Eroski implemented a 12% increase in product prices, which affected the lower results. In this context, Eroski verified that consumers have reduced their cart size, causing total sales volume to decrease by 2%.

Eroski’s operating profit was 204 million, up 10% from the 185.5 million recorded in the previous year. The effect of inflation on its activity. Expenses related to leasing, transportation and staff resulted in an “additional cost” of 38 million, although the company specified on Wednesday that “efficiency measures” introduced throughout the value chain had allowed it to counter inflation pressure “without having to fully integrate it into pricing.” Selling without penalizing consumers.

Ebitda exceeded 280 million, due to improvement in throughput. Eroski reduced the financial debt by 44 million to 909 million. Since 2009, the distribution group has managed to reduce this load by 2,514M. The Eroski Collaborative Matrix delivered a positive result of 32.07 million.

“We consolidated the positive results by increasing our market share in reference regions, such as Galicia and the Balearic Islands, the trend reversed in Catalonia and we maintain our leadership in Navarra and the Basque Country. The performance was favorable, ”said Karabelle, the first woman in charge of the cooperative. Eroski strengthened its presence in Spain with the opening of 78 stores, both owned and licensed. With 67 franchises opened, its franchise network has grown to more than 600 establishments. It also renovated 91 stores in its trading network.

In the field of logistics, after an investment of 18.5 million, the construction of the Sigüeiro fresh produce platform, the largest logistics infrastructure in the sector in Galicia, has been completed. A milestone that, together with the opening of the Júndiz logistics platform (in Vitória) in 2021 and the commissioning of the Caprabo plaster platform in the ZAL port of El Prat de Llobregat at the end of 2020, culminates in the redesign of your calm. Podium map of the northern region.

President Eroski emphasized that the company tried to boost consumer savings through promotional campaigns: “In 2022 we will transfer savings worth 335 million to consumers through intense promotional activity, monitoring and price adjustment, demonstrating once again a very high level of responsibility and commitment.” Eroski has listed 1,268 people as co-op members in 2022, bringing the total number of working members in the parent co-op, at the end of last year, to 9,500.

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