Retailers’ profits stagnated last year

Retailers’ financial results show that they are not to blame for last year's inflation spike. The five largest chains increased sales by 14% to €6.4bn and their net profit was flat at €316m. Market leader Lidl increased net profit 8% to €159m last year as sales rose 14% to €1.9bn. Kaufland, with the same owner as Lidl, increased net profit 2% to €88m on 12% sales growth to €1.5bn. Tesco saw net profit fall 24% to €57m, although sales grew 10% to €1.6bn. Tesco explains the drop in profits by a rise in energy prices from €22m to €36m. The retailers also increased wages, Lidl by 13% and Kaufland by a tenth.

The only retailer with a notable increase in profits last year was Labaš (+57% to €8.3m). On the other hand, the gross profit of local farms soared 87% to €350m. This year, farmers are unlikely to keep such high profits.

(dennikN.sk)