Baltic retail giant Maxima Grupė reports 13% increase in revenues to €5.845 billion

LONDON: Maxima Grupė, the retail giant in the Baltic States, has announced its consolidated financial results for 2023, showcasing significant growth despite the economic headwinds affecting its markets. The Group, which operates well-known retail chains across Lithuania, Latvia, Estonia, Poland, and Bulgaria, and the e-commerce platform Barbora in the Baltic States, has reported a consolidated revenue of €5.845 billion, marking a 13% increase from the previous year.

The surge in revenue is attributed largely to the performance of the ‘Stokrotka’ retail chain, contributing nearly half of the Group’s revenue growth.

The Group’s EBITDA also saw a substantial rise, reaching almost €479 million, a near 30% increase compared to 2022. This growth in EBITDA is credited to factors such as higher average basket sizes, increased customer traffic, reduced energy expenses, and enhanced efficiency in store and logistics operations, bringing the EBITDA margin back to the 2021 level of 8.2%.

Expansion efforts continued unabated in Poland and Bulgaria, with the Polish network adding 60 stores and Bulgarian operations expanding by 12 stores.

The Baltic region also saw the opening of four new stores, contributing to an 8.7% revenue increase in the area. E-commerce channels recorded a 5.5% growth.

Manfredas Dargužis, CEO of Maxima Grupė, emphasized the Group’s focus on maintaining stability and pursuing strategic goals amidst high inflation and reduced consumption.

“Our companies have adapted by implementing new sales promotion strategies and offering competitive pricing, while also pushing forward with our expansion plans, store format standardization, private label development, and business process optimization,” said Dargužis.

Investments in expansion and store renovation surged by 45% in 2023, totaling over €168 million. A notable project underway is the construction of a 46,000 square meter logistics center in Lithuania, representing a €70 million investment, set to enhance network efficiency upon its 2024 operation commencement.

The Group’s commitment to community and environmental responsibility was highlighted by its participation in the international “Science Based Targets” initiative, aligning with the Paris Climate Agreement. Charitable contributions also increased, with 3,727 tons of food donated to food banks and charity organizations, an 82% increase from the previous year.

Financially, Maxima Grupė redeemed long-term bonds and reduced its debt level, achieving a consolidated net debt to EBITDA ratio of 2.0 by the end of 2023. The sole shareholder, UAB “Vilniaus prekyba,” approved the financial statements and a dividend payout of €123 million for the year.

This financial report underscores Maxima Grupė’s ability to navigate through challenging market conditions while continuing its growth trajectory and maintaining a strong commitment to its communities and the environment.

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