COLRUYT GROUP N.V. 
PRESS RELEASE - 13 December 2022 17h45 CET - Regulated information
Consolidated information on the first semester of the financial year 2022/23
Revenue grows 5,7%
Lower operating result and net result
Halle, 13 December 2022
Headlines
The first half of the financial year 2022/23 was marked by a challenging macroeconomic context with high inflation, substantial cost increases and a negative business and consumer confidence.
This context translates into a 5,7% increase in Colruyt Group's revenue (3,4% excluding fuels). The revenue increase is mainly driven by inflation, partially offset by lower volumes. The Belgian retail market is characterised by volume declines in food stores and high competitiveness. Colruyt Lowest Prices will continue to consistently implement its lowest price strategy. This implies that cost price inflation is not fully passed on to the customer, bringing down the gross profit margin.
In addition, today's context causes Colruyt Group's operating costs to climb significantly. Mainly due to rising energy and transport costs and to employee benefit expenses being heavily impacted by Belgium's automatic wage indexation system. As far as wage indexing is concerned, the greatest impact is expected in the second half of the year.
This results in a decrease of the group's operating result and net result to respectively EUR 123 million (2,3% of revenue) and EUR 89 million (1,7% of revenue) in the first semester of 2022/23.
Colruyt Group's investments amounted to EUR 228 million in the first half of 2022/23 (4,3% of revenue) and related mainly to new stores and the modernisation of existing stores, to the expansion of logistics capacity in Belgium and France, to innovation and digital transformation programmes, and to renewable energy and energy efficiency.
The combination of the above elements results in an increase of the net financial debt (excluding IFRS 16) to EUR 709 million.
Colruyt Group maintains its long-standing focus on simplicity and efficiency and maximises operational cost control and cash management to face up to these short-term challenges. In addition, the group retains its focus on its long-term strategy which is based on four areas of expertise - 'Food', 'Health and Well-being','Non-Food' and 'Energy' - that are supported by a physical component on the one hand (stores, distribution centres, etc.) and are interconnected by a digital component on the other (the personal shopping assistant Xtra). This allows the group to serve customers and respond to their needs in an optimum way. This means that investments in sustainability and efficiency, digital transformation and innovation, employees and high-qualityhouse-brand products are pursued in a targeted manner.
Consolidated information on the first semester of the financial year | page 1 / 24 |
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PRESS RELEASE - 13 December 2022 17h45 CET - Regulated information
CEO Jef Colruyt looks back on the first six months of the financial year, but also looks ahead: "The past two to three years have been challenging, first due to the COVID-19health crisis and then due to the geopolitical situation, which provoked the energy crisis and high inflation, among other things. We will not let this adversity throw us off balance. As a retailer and as the market leader, we continue to fulfil our role in society, whereby the Colruyt Lowest Prices formula continues to deliver on its brand promise. This implies that price increases are not fully passed on to the customer, nor is the high inflation on our energy and transport costs and on our employee benefit expenses. As a consequence, Colruyt Group's results are under significant pressure. The months to come will remain very challenging, with gloomy macroeconomic forecasts that will further affect consumer spending patterns. However, we have some valuable trump cards in our hands. Thanks to our long-standingfocus on and experience in operational cost control and efficiency, and to our targeted long-terminvestments, we as a group have strong roots to rely and build on. We are also proud that we can continue to count on our employees, who give their best day in day out. As a group, we continue to operate in a purposeful way, obviously with a critical mindset and adjusting where needed, yet always with an eye to the long term."
I. Financial report
A. Consolidated income statement
1/04/2022 | 1/04/2021 | ||
(in million EUR) | - | - | Variance |
30/09/2022 | 30/09/2021 | ||
Revenue | 5.266 | 4.981 | +5,7% |
Gross profit | 1.392 | 1.340 | +3,8% |
% of revenue | 26,4% | 26,9% | |
Operating cash flow (EBITDA) | 311 | 389 | -20,0% |
% of revenue | 5,9% | 7,8% | |
Operating profit (EBIT) | 123 | 211 | -41,6% |
% of revenue | 2,3% | 4,2% | |
Profit before tax | 116 | 212 | -45,4% |
% of revenue | 2,2% | 4,3% | |
Profit for the period | 89 | 162 | -45,1% |
% of revenue | 1,7% | 3,3% | |
Earnings per share (in EUR)(1) | 0,69 | 1,21 | -42,7% |
- The weighted average number of outstanding shares equalled 128.650.249 in the first semester of the financial year 2022/23 versus 133.904.382 in the first semester of the financial year 2021/22.
Colruyt Group's revenue rose by 5,7% to nearly EUR 5,3 billion in the first semester of 2022/23. During the first six months, revenue was positively impacted by the revenue increase from the fuel distribution activities of DATS 24 (excluding petrol, revenue increased by 3,4%), the full consolidation of Roelandt Group and increased food inflation. On the other hand, revenue evolution in the first semester was negatively affected by the declining volumes.
Colruyt Group's market share in Belgium (Colruyt Lowest Prices, OKay and Spar) remained practically stable at 30,9% in the first half of the financial year 2022/23.
Consolidated information on the first semester of the financial year | page 2 / 24 |
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PRESS RELEASE - 13 December 2022 17h45 CET - Regulated information
The gross profit margin decreased to 26,4% of revenue. Excluding petrol, the gross margin declined by 11 basis points. The Belgian retail market remains highly competitive. As a retailer and as the market leader, Colruyt Group continues to fulfil its role in society, whereby customers can count on the group to help them stay on top of their household budgets. This implies that cost price inflation is not fully passed on to the customer. Furthermore, margin percentage evolution is partly influenced by miscellaneous product mix effects and by operational improvements.
Net operating expenses climbed from 19,1% to 20,5% of revenue. This significant increase is mainly attributable to rising inflation, with a large impact on energy costs, transport costs and employee benefit expenses. The latter are heavily impacted by the automatic wage indexation system in place in Belgium. In view of the current market conditions, Colruyt Group monitors to a maximum extent cost management and improvements in productivity. In addition, the group maintains its long-term focus and pursues its investments in sustainability and efficiency, digital transformation and innovation, employees and high-qualityhouse-brand products in a targeted manner.
The operating cash flow (EBITDA) reached 5,9% of revenue (7,8% in 2021/22).
The depreciation, amortisation and impairment charges rose by EUR 10 million. The increase is mainly attributable to the continuous investments in stores, distribution and production centres and transformation programmes.
The operating profit (EBIT) totalled EUR 123 million or 2,3% of revenue in 2022/23 (4,2% in 2021/22).
The share in the results from investments was EUR 6 million lower than in 2021/22.
This is mainly due to Virya Energy reporting a lower result in the first half of the year of 2022/23, in particular owing to poor wind conditions.
The effective tax rate decreased to 22,1%. Throughout the financial year, we expect an average effective tax rate in the range of 25,0%.
The profit for the period amounted to EUR 89 million (1,7% of revenue), a 45,1% decrease compared to the same period in 2021/22 (EUR 162 million or 3,3% of revenue).
Consolidated information on the first semester of the financial year | page 3 / 24 |
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PRESS RELEASE - 13 December 2022 17h45 CET - Regulated information
B. Segment information
1. Retail
Revenue from the retail activities grew by 3,6% to EUR 4.219 million. The retail activities accounted for 80,1% of the consolidated revenue in the first semester.
Food retail revenue increased by 2,5% in a market environment that is highly competitive, especially in terms of price. This increase is a result of food inflation and the full consolidation of Roelandt Group, partially offset by volume declines in food stores.
Revenue of Colruyt Lowest Prices in Belgium and Luxembourgincreased by 2,6% for the reasons mentioned above. Colruyt Lowest Prices continues to consistently implement its lowest prices strategy and delivers on its commitment to its customers day after day. This implies that cost price inflation is not fully passed on to the customer.
In the first half of 2022/23, seven stores were modernised and two new Colruyt stores were opened.
OKay, Bio-Planetand Crureported an aggregate revenue decline of 2,6%. Revenue is impacted by volume declines, which are partly offset by price inflation.
OKay opened three new stores in the first half of 2022/23 and simultaneously rolled out the renewed store concept in several stores. As a neighbourhood discounter, OKay thus continues to commit to providing a quick, cheap and easy shopping experience, with a focus on convenience and on high-quality and fresh products. OKay Direct, Colruyt Group's innovative 'self-service store' in Ghent, was awarded the innovating Mercurius prize by Comeos (federation representing Belgian trade and services) in October 2022, in recognition of its daring spirit and innovation in the sector.
Bio-Planet remains a pioneer in sustainability with a large range of organic and eco-friendly products and healthy food. Bio-Planet wants to make conscious consumption more accessible and also continues to focus on Belgian and local products. In late September 2022, the first store to feature the new store concept opened its doors. This new store has a greenhouse for fresh fruits and vegetables, an own bakery and an extensive service counter, and it promotes packaging-free shopping.
Also at the end of September 2022, Cru opened its fourth market on the Eylenbosch site in Dilbeek. Artisan products and customer experience combined with craftsmanship remain at the forefront for the Cru multi-experience markets. In the meantime, they pursue their efforts to improve operational efficiency.
The revenue of Colruyt in France(including the fuel distribution activities of DATS 24 in France) rose by 10,7%. Excluding petrol, the revenue of Colruyt in France increased by 4,4%. In the first semester, two new stores were opened in France. Colruyt Prix-Qualité is a clearly laid-out neighbourhood supermarket, where customers can find everything they need for their daily and weekly shop.
Colruyt Group continues to make targeted investments in its French retail activities by opening new stores, renewing existing stores and doubling the logistics capacity in the years ahead.
Consolidated information on the first semester of the financial year | page 4 / 24 |
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PRESS RELEASE - 13 December 2022 17h45 CET - Regulated information
Non-foodretail revenue increased by 22,1% compared to last year and comprises the store revenue and online revenue of Dreamland, Dreambaby, Bike Republic, The Fashion Society and JIMS. As from this financial year, the online revenue of Dreamland and Dreambaby is also reported in the non-food retail revenue section, regardless of which store realised the revenue.
The combined revenue of Dreamland, Dreambaby and Bike Republicclimbed during the first semester, mainly thanks to Bike Republic. Bike Republic expanded its store estate with no fewer than six stores during the first half of the year. Each of these business activities is a major player in its respective market. Dreamland and Dreambaby maintain their strong market position in Belgium but are experiencing volume declines as a result of the current macroeconomic context. This has a substantial negative impact on their profitability.
The revenue of The Fashion Society, the holding that comprises the fashion retail chains ZEB, PointCarré and The Fashion Store, also increased in the first half of the year.
JIMShas 28 traditional fitness centres (25 in Belgium and 3 in Luxembourg) and also offers group exercise classes and digital coaching. In the first half of the year, a new JIMS fitness opened in Kuurne. The new fitness centre was given a completely new look & feel and has an outdoor fitness facility. Compared to last financial year, JIMS' revenue doubled.
In June 2022, Colruyt Group announced its intention to increase its stake in the online pharmacy specialist Newpharma(accounted for using the equity method) further from 61% to 100%. This was completed in October 2022. In the half-yearly results of Colruyt Group, Newpharma is still accounted for using the equity method.
As a retailer, Colruyt Group considers it an important responsibility to have a positive impact on the health of its customers, of its own employees and of society in general. Something which JIMS and Newpharma, among others, are contributing to. The ultimate goal is to develop a physical and digital ecosystem that promotes a holistic and preventive approach to well-being and health, step by step. Health encompasses more than just nutrition; it also includes sleep, exercise and mental health.
Colruyt Group continues to invest in and innovate its online store concepts and digital applications in a targeted way.
Colruyt Group's online sales amounted to 7% of the retail revenue, excluding petrol, in the first half of 2022/23. Colruyt Group's online revenue is primarily generated by Collect&Go. The shopping service of the Colruyt and Bio-Planet stores is the market leader in the Belgian online food market.
In June 2022, Colruyt Group launched a home delivery servicevia Collect&Go, with orders being delivered by its own employees in Brussels and Antwerp. This, combined with home delivery by Drivers (formula with private delivers) launched in May 2020, enables Collect&Go to provide faster home delivery to more customers. The number of regions in which home delivery is possible has been and continues to be expanded.
Colruyt Group's Xtra appwas recently revamped. New, useful features will regularly be added in the coming months. Customers can use the app to make payment, to put together shopping lists, to save receipts, warranty certificates and vouchers, etc. In this way, the Xtra app is gradually turning into a 'personal shopping assistant' for the customers.
Consolidated information on the first semester of the financial year | page 5 / 24 |
https://www.colruytgroup.com/wps/portal/cg/en/home/investors
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Colruyt SA published this content on 13 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 December 2022 16:54:01 UTC.
