You are currently viewing Mercadona increases its sales by 3.3% in 2021 to 27,819 million and reduces its net profit by 6%

Mercadona has increased its sales by 3.3% in 2021, reaching 27,819 million euros, and has registered a net profit of 680 million, which represents a decrease of 6% compared to the previous year. The company has increased its market share by 0.8% to 27.1% and has 96,000 workers at the end of 2021, 1,000 more than last year.

This was announced this Tuesday by the president of Mercadona, Juan Roig, at the annual press conference in which he reports on the results of the previous year and the forecasts for this year.

During his speech, Roig has condemned the war in Ukraine since in 2021 “things can be solved in another way”, he has shown his “solidarity” with the Ukrainian people and with its “great president”, Volodímir Zelenski, who is ” showing his face risking his life with his compatriots”.

Likewise, he has remarked that the Spanish and Portuguese agri-food chain “is very strong” and “there will not be any lack of products”. “There are no shortage problems”, he has remarked, and has recalled the “great consumption” of toilet paper during the pandemic.

For Roig, the problem of sunflower oil, olive oil or flour “is hoarding, it is nothing else”. “We have more than enough merchandise”, he has remarked, but he has asked that “the client does not stockpile” and has criticized the “speculators”.

INFLATIONIST SITUATION

The president of Mercadona has referred to the current inflationary situation, and has asserted that “to minimize its impact on sales prices, Mercadona decided not to transfer all of these important increases to its customers, which has generated a negative impact of 100 million euros in its operating margins, which has translated into a 6% reduction in its net profit, which in 2021 has been 680 million euros.

In addition, he highlighted that they have continued to make progress in their transformation to consolidate a “more digital, productive and sustainable” business model: To do this, it has invested 1,200 million euros this year, a figure that added to the investment of the three fiscal years above exceeds 5,000 million.

As a result of this investment, the company has ended 2021 with 1,662 supermarkets, 29 of them in Portugal, after having opened 79 supermarkets (9 of them in Portugal) and closed 58 stores that did not fit its new, more efficient store model and sustainable.

Likewise, it has maintained the renewal process, until the end of the year with 1,200 supermarkets of the New Efficient Store Model (Store 8). The company has also continued with the implementation of the new “Ready to Eat” section (“Ready to Eat” in Portugal), which has allowed it to end the year with 825 stores with the new section.

Likewise, the Management Committee agreed to raise the salary of the entire staff according to the rise in the CPI, 6.5% in Spain and 2.7% in Portugal, with the aim of guaranteeing their purchasing power and in coherence with a company model that has been in force for 28 years and whose workers are the best asset of the clients and essential for the growth of the Mercadona Project.

The company’s commitment to generating quality work has also been reflected throughout the year through different initiatives. Thus, for example, throughout 2021, important preventive and training work has continued to be carried out in occupational health, a factor that has taken on an even greater role in a pandemic context, with the aim of making the workforce feel sanitary protected and safe.

With this same objective, the 3C (Call Center Covid) telephone service has been reinforced, made up of 180 professionals, including health and medical professionals, who have offered attention 24 hours a day, 7 days a week, receiving in the most complicated moment of the sixth wave, in which 5% of the workforce was infected, up to 8,000 calls a day.

New technological applications have also been incorporated to facilitate work and family reconciliation. In this sense, the mobile application for internal use Activo2 has been consolidated in 2021 as one of the main internal communication channels that has allowed not only to keep the entire workforce informed, but also to collect their opinions to continue consolidating Mercadona as a differential project by incorporating a large part of the contributions received through this collaborative tool.

DIGITAL TRANSFORMATION AND SUSTAINABILITY

Mercadona has managed in 2021 to consolidate its online shopping service (Colmenas and Telecompra), and increase its sales to 510 million euros, a figure that represents a growth of 40% compared to the previous year. Likewise, Mercadona Online (Colmenas) has increased its number of orders to 1.8, compared to 1.2 million in 2020, and has closed the year with a team of 1,636 people.

At the end of the year, the company had three hives (exclusive stores for online sales), located in Barcelona, ​​Madrid and Valencia, to which it plans to incorporate two new ones in 2022, one in Alicante and the other in Seville. In addition, they are testing the online delivery service directly from the store in three establishments in Castellón and Tarragona, to deal with smaller order volumes.

In the field of sustainability, Mercadona has invested more than 49 million in different initiatives and measures aimed at promoting a more positive and sustainable impact in all its actions. In this context, the company has continued to strengthen its Strategy 6.25, which allocates an investment of 140 million until 2025 to achieve the triple objective of reducing plastic by 25%, making all packaging recyclable, and recycling all plastic waste. ; and the implementation of the 6.25 Store throughout the chain has been completed.

Likewise, through AENOR, Mercadona has verified the impact of its carbon footprint, after calculating both its direct and indirect emissions from electricity consumption, introducing new sustainable decarbonisation measures, such as renewing the fleet with alternative fuels, incorporating of solar panels in some of its facilities or the change of refrigerant gases in the equipment.

As far as donations are concerned, donations of basic necessities to soup kitchens, food banks and other charities with which it collaborates have increased by 21%, reaching 20,600 tons donated, of which 19,200 have been distributed in Spain and 1,400 in Portugal. In addition, as a sign of its solidarity with the island of La Palma, from the first day of the eruption, Mercadona made 74 tons of food and 1 million masks available to them.

FORECASTS FOR 2022

Mercadona plans to invest 1,100 million in 2022 to continue promoting its strategic transformation plan. These resources will be used mainly for the opening of 68 new supermarkets, 58 in Spain and 10 in Portugal; to the reform of 43 supermarkets to adapt them to the New Efficient Store Model; and the implementation of the new Ready to Eat/Soon to Eat section in another 150 supermarkets. For all this, the company will create more than 1,000 stable and quality jobs in 2022, between Spain and Portugal.

“The year 2022 is proving to be very difficult, the current inflationary scenario is being reflected in the company and will mean an increase in our expenses of more than 500 million euros. To minimize this impact, Mercadona will continue to bet on productivity and efficiency in each of the processes to be increasingly competitive”, they have pointed out.

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