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Maxima Grupė 2023: 13% revenue growth, low prices and expansion in Poland.

Maxima Grupė 2023: 13% revenue growth, low prices and expansion in Poland.

Maxima Grupė 2023: 13% revenue growth, low prices and expansion in Poland.

The retail leader in the Baltic countries, MAXIMA GRUPĖ, UAB, which manages the "Maxima" retail chain in Lithuania, Latvia, and Estonia, "Stokrotka" in Poland, "T-Market" in Bulgaria, and the online store "Barbora" in the Baltic countries, announces its consolidated financial results for 2023.

Despite the unstable economic situation in all the markets where MAXIMA GRUPĖ operates, the group managed to maintain financial stability in 2023. In the context of high inflation, the group consistently continued to expand its retail store network and steadily increased its revenue. Consolidated revenue reached 5.845 billion euros, which represents a 13% increase compared to the previous year. Almost half of the revenue growth came from the increased turnover of the "Stokrotka" retail chain.

The consolidated EBITDA of MAXIMA GRUPĖ amounted to nearly 479 million euros, which is almost 30% higher than in 2022. The growth in EBITDA was driven by several factors, including an increase in revenue due to a rise in the average basket size and store footfall, a reduction in energy costs, and improved efficiency in store and logistics operations. The group's EBITDA margin returned to the level of 2021, standing at 8.2%, which is 1 percentage point higher than in 2022. Poland and Bulgaria remain the main areas of the group's expansion. The retail network in Poland grew by 60 stores, continuing its expansion pace for the fifth year. Revenue growth in Poland was 24.7%. In Bulgaria, the store network increased by 12 stores, and revenue grew by 15%. Last year, 4 new stores were also opened in the Baltic countries: 2 in Lithuania and 2 in Estonia. Revenue in the Baltic countries increased by 8.7% in 2023: by 7.9% in Lithuania, 10.1% in Latvia, and 8.6% in Estonia. Revenue from the group's online channels grew by 5.5%.

According to the CEO of MAXIMA GRUPĖ, Manfredas Dargužis, the group has been striving to maintain stability in unstable market conditions and has continued to pursue its set goals: "High inflation and declining consumption in the markets where the group operates have prompted the companies within the group to focus on implementing new sales promotion strategies and offering attractive prices to customers. The group has also continued to achieve its previously set goals: expansion in Poland and Bulgaria, standardization of store formats, development of private labels, and optimization of business processes."

The group's investments in the expansion and reconstruction of stores increased by 45% compared to 2022, reaching over 168 million euros in 2023.

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In 2023, construction began on a logistics center in Lithuania covering 46,000 square meters, with planned investments of 70 million euros. This warehouse, which is set to be operational in 2024, will supply goods to all "Maxima" stores in Lithuania, significantly enhancing the efficiency of the entire network. The process of standardizing store formats, initiated in the Baltic countries in 2021, reached its final stage in 2023 - by the end of the year, over 70% of stores across all countries had been standardized to a single store format. Standardizing store formats is also crucial for more effective management of retail networks. Out of 499 stores in Lithuania, Latvia, and Estonia, 369 operate in a standardized format.

At the beginning of the year, a new brand called "Well Done" was introduced, offering quality food products at lower prices. By the end of the year, "Well Done" had expanded to over 400 different products, and the share of sales from the total revenue of the group from its own brands reached 18.8%.

The companies controlled by MAXIMA GRUPĖ in all countries are an important part of the community and are responsible for their activities and their potential impact on the environment. In early 2023, MAXIMA GRUPĖ joined the international initiative "Science-Based Targets" and committed to achieving goals aligned with the Paris Climate Agreement. The group's targets were officially approved by the end of 2023 as part of the global "Science-Based Targets" initiative, and MAXIMA GRUPĖ became officially recognized as one of the most advanced companies in the world within this initiative. The group's companies collaborate with various charitable organizations and food banks in their countries, donating a portion of food that is safe for consumption but has not been sold. The total volume of food donated to charitable organizations and food banks increased by 82% in 2023, reaching 3,727 tons.

In September 2023, MAXIMA GRUPĖ redeemed its long-term bonds at the end of a five-year term. Throughout 2023, the group's debt level decreased, and the ratio of consolidated net debt to EBITDA by the end of 2023 was 2.0. The sole shareholder of MAXIMA GRUPĖ is UAB "Vilniaus prekyba," which approved the financial statements of the company and the group for 2023 and the profit distribution plan, according to which 123 million euros in dividends were allocated to Vilniaus prekyba in 2023.

Additional information:

MAXIMA GRUPĖ, UAB manages retail chains MAXIMA (in the Baltic countries), STOKROTKA (in Poland), T MARKET (in Bulgaria), and the online grocery store BARBORA, operating in the Baltic countries. MAXIMA GRUPĖ, UAB is part of the Vilniaus prekyba group of companies. Through its subsidiaries, Vilniaus prekyba controls investments in retail and pharmaceutical networks, restaurant chains, as well as companies involved in real estate development and leasing in the Baltic countries, Sweden, Poland, and Bulgaria.

Maxima Grupe Consolidated Annual Report 2023.

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