Eastern Europe, Asia help boost bottom line for Auchan
A strong contribution from Eastern Europe and Asia helped supermarket giant Auchan’s consolidated revenue rise 14.7% to reach €53.4 billion last year, according to its 2014 annual results.
This significant increase in turnover was primarily due to the French group’s consolidation of 100% of Sun Art Retail Group, it said.
“Strong performances in Central and Eastern Europe (+5.9%) and Asia (+96.4%, +5.8% after restatement for the impact of the consolidation of 100% of Sun Art Retail Group) offset the fall in Group revenue in France (-2.2%), which is mainly attributed to a fall in prices, and in Western Europe (-6.0%), due to difficulties in Italy.”
Despite a broadly difficult situation, Groupe Auchan continued to invest in France (€531 million, i.e. 25.9%) and the euro zone (€245 million, i.e. 11.9%), notably to maintain the appeal of its sites. €537 million (26.2%) was invested in Central and Eastern Europe, among others to finance the first banner changeovers in Poland. €737 million (36.0%) was invested in Asia.
“The breakdown by core business shows that €1,319 million, i.e. 64.3% of the total, was invested in the hypermarkets, €269 million (13.1%) in the supermarkets, €397 million (19.4%) in retail property, and €65 million (3.2%) in the other activities.”
Auchan listed its 2014 highlights as:
- Full consolidation of the results of Sun Art Retail Group, Groupe Auchan’s Chinese subsidiary
- Signing of purchasing partnerships in France (with Système U), in Italy (with SISA) and internationally (with METRO GROUP)
- Start of consolidation of the 57 Real hypermarkets in Poland in February 2014; 12 banner changeovers in 2014
- Continued expansion of directly-owned activities (57 hypermarkets, 72 supermarkets and 17 drive formats opened) and partnership activities (Paris, Reunion Island, Tunisia, Vietnam)
- Continued implementation by Immochan of its dynamic asset management policy (14 assets concerned)
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