Polish supermarket chain Eurocash swings to loss in 2024

GDANSK (Reuters) - Polish supermarket chain Eurocash said on Thursday its annual result turned to a loss of 26.9 million zlotys ($7.0 million) in 2024, from a profit of 99.2 million a year earlier, after it warned of a tough market environment late last year.

WHY IT'S IMPORTANT

Eurocash, one of the largest supermarket chains in Poland, in November said it may not achieve its 2025 financial targets due to challenging market trends and its revised operational plans.

It said at the time that the core profit (EBITDA) and revenue goals for its online supermarket brand Frisco were particularly at risk, both set at 1 billion zlotys as part of the strategy announced in 2022.

BY THE NUMBERS

Eurocash's annual revenue declined 0.7% to 32.24 billion zlotys, while its EBITDA fell 12.4% to 933.5 million zlotys.

In the fourth quarter, the core profit was broadly stable compared to a year earlier at 325.2 million zlotys, in line with market expectations.

The company did not provide brand-specific numbers.

CONTEXT

In February, Eurocash said it would invest 40 million zlotys in its ABC, Groszek and Euro Sklep shop networks, aiming to modernize 4,000 shops by the end of 2025.

As of April, the group had a market capitalization of 1.23 billion zlotys, while its main competitors Zabka and Dino Polska were valued at 20.76 billion zlotys and 44.41 billion zlotys, respectively.

($1 = 3.8259 zlotys)

(Reporting by Julia Kotowska, editing by Milla Nissi)