Last Year MAXIMA GROUP Made Most of Investments into Low Prices
9 February 2010
In 2009, the turnover of MAXIMA GROUP, JSC went down by 9 percent as compared to those in 2008 at the same time and amounted to 7.721 billion LTL excluding VAT. Turnover of the companies managed by the GROUP mostly went down in Lithuania – by 11.6 percent. At a comparative period the companies of MAXIMA GROUP paid 4.4 percent more taxes to the state and provided discounts to their customers in the amount of more than 300 million LTL.
"Last year was difficult for all business not only due to the general economic situation, but also due to the political decisions, which had a direct effect on the company's operations and results, especially in Lithuania. However, having started implementation of the company's operations programme to increase efficiency at the right time and having evaluated the changed consumer needs we were able to manage outlay, to maintain employment of the biggest part of the employees and paid more taxes. We had to stimulate sales at our own expense, since the price became the main criterion of consumption," says Mindaugas Bagdonavičius, the Director General of MAXIMA GROUP, JSC.
According to the leader of MAXIMA GROUP, in 2009 the company regularly reduced prices for most of the goods categories and provided discounts to the consumers for the amount larger than 300 million LTL.
M. Bagdonavičius stated that GROUP's annual results were stabilized by the operation results on the foreign markets. Retail company MAXIMA LT, JSC at an analysed period had the largest in Lithuania turnover drop of 11.6 percent, which amounted to 4.777 million LTL excluding VAT. The financial results in Lithuania were affected not only by the changed consumer habits and the general economic situation, but also by the increased tax base and a more strict regulation of the trade market.
In Latvia, the past year's annual return of the operating company MAXIMA Latvija belonging to MAXIMA GROUP, JSC dropped by 7.8 percent and amounted to 1.910 million LTL excluding VAT. According to M. Bagdonavičius, in the time of recession MAXIMA stores in the neighbouring countries are one of the most popular ones because they offer high quality goods for low prices.
In Estonia the return of MAXIMA Eesti operating 52 stores grew by 9.2 percent and amounted to 877 million LTL excluding VAT due to a smaller GDP drop than that in Lithuania, a more advantageous business environment for the retail market and developed chain of small-sized stores.
In Bulgaria the first turnover drop of 12 percent of the company MAXIMA Bulgarija was registered in the fourth quarter. This was influenced by the economic recession, which started in the second half of the year. However, the economic decline, which started later than in the Baltic States, had determined positive company's annual results and the increase of 11 percent – company's return amounted to 214 million LTL excluding VAT.
The largest effect the economic crisis and decline on the immovable property market had on the return of Ermitažas, JSC belonging to MAXIMA GROUP, which at the analysed period have dropped by 18.1 percent and amounted to 173 million LTL excluding VAT.
MAXIMA GROUP, JSC is an operational financial holding company registered in 2007, governing the retail business in Lithuania, Latvia, Estonia and Bulgaria, which consists of 426 trade centres
Maxima X, Maxima XX, Maxima XXX, T-Market and Ermitažas, of which 217 are in Lithuania, 127 in Latvia, 52 in Estonia and 30 in Bulgaria. The number of employees of the companies managed by MAXIMA GROUP, JSC in all the countries is more than 25.5 thousands.
Back to all news