PROFI ENDED 2022 WITH REMARKABLE FINANCIAL RESULTS
The 2022 IFRS results of Profi, a Romanian company, which show that our strategy, based on the New Profi format, Partnership in store management and Digitization has helped us to grow sustainably in all business areas.
“In 2022, sales registered an advance of over 22% (+2.1 billion RON in absolute amount), reaching 11.7 billion RON. The material increase in sales was generated both by a LFL increase of 18% (overtaking the annual inflation rate) and by c. 270 new stores, of which some 100 openings and more than 170 remodeled,” said Profi CFO Andrei Bica. “Moreover, the approximately 440 stores that operate on the new Profi concept had a spectacular LFL increase of 28%. The number of customers who visit us daily increased by over 17%, to an average of 1.2 million/day, with peaks of around 1.4 million daily transactions, and we are happy to see that the trend of customers who prefer Profi continues in 2023. Moreover, Profi sales from the first quarter of 2023 show the continuity of our business growth, registering a 25% advance compared to the first quarter of 2022.”
EBITDA has increased some 5% year-on-year, showing that despite the atypical business conditions of recent years, such as the negative impact of COVID, supply chain interruptions, energy price volatility, Profi finds solutions to remain profitable in the long term.
The Cash position increased to approximately RON 300m due to strong operational cash generation. Through continuous support from lenders and shareholders, the company has access to available credit lines of RON 400m that can be used to continue the expansion of our store network and the introduction of modern digital products, which will increase loyalty and improve the experience of our customers. Moreover, Profi is working closely to its suppliers to utilize reverse factoring lines of over 250m, which offer extremely advantageous conditions to expand collaboration with our suppliers, who have also supported Profi throughout the years and achieved around 20% growth together with us over many years.
Profi ended last year with 1,641 stores (some 440 stores on the new Monaco format), of which over 1,000 stores are managed by Partners, which is a strategic approach that will continue. Also, the Profi application registered over 1.4m members at the end of 2022 and has some 1.7m members today with a share in sales of 10%, constantly growing.
The results of the company would not have been possible without our customers, who visit stores every day and to whom we thank, but also without the Profi team who contribute their efforts to the constant development of the company.
Regarding the strategy for 2023, we will continue to open and remodel over 200 stores to increase the Profi business, and especially we will accelerate the digital agenda, both by offering new digital products to our customers, starting from their basic needs, but also by automating processes in stores and offices
With over 28000 employees and stores in nearly 800 localities, Profi is one of the biggest retailers and the top employer in Romania.
About Nine O’Clock
Nine O’Clock was the first exclusively daily publication to appear in English language in Romania. The first issue of the Nine O’Clock newspaper came out 32 years ago. On October 9, 1991 a group of foreign-policy Romanian journalists came up with the initiative to release, for the first time in Romania’s history, a publication solely in English. From 2023, the new owner of the newspaper is Mihai Manea.