In 2016, consolidated audited turnover of “Maxima Grupė” companies in Baltic states, Poland and Bulgaria amounted to EUR 2.693 billion without VAT, consolidated net profit after tax comprised EUR 33 million, while investments in fixed assets exceeded EUR 67 million. More than EUR 179 million of taxes were paid in Lithuania.
The fastest turnover growth was recorded in Bulgaria
Last year, the consolidated turnover of “Maxima Grupė” companies was 0.4% higher than in 2015. In Bulgaria, the turnover increased by 22.1% and reached EUR 88.5 million, in Poland, it increased by 6.2% and amounted to EUR 48.2 million. In Estonia, the turnover increased by 1.1% to EUR 445 million, Latvia’s increase was 0.7% and the turnover amounted to EUR 694 million, in Lithuania, the turnover decreased by 1.4% and was EUR 1,503 billion.
The group operations were profitable; the decrease in profits were caused by unusual one-off costs
The companies of the group earned EUR 33 million of consolidated net profit, 57.4% less than in 2015 (EUR 77 million). The profit drop was mostly caused by one-off costs – assets impairment costs (EUR 22 million), Competition Council fine imposed in Lithuania (EUR 15 million), payments to the families of the victims of Zolitūde tragedy in Latvia (EUR 5 million). Without the mentioned one-off costs, the net profit would have amounted to almost EUR 75 million and it would have been 2.8% lower than in 2015. “Maxima LT” having the largest turnover, trade area and number of shops, earned EUR 54 million of net profits in 2016, 26.1% less than in 2015 (5.7% less without one-off fine imposed by the Competition Council).
The trade area and number of shops increased
In 2016 group companies invested over EUR 67 million in fixed assets. Trade area of “Maxima” in all countries increased by 3.6% and amounted to 548 thousand square metres. At the end of 2016 the group managed 552 Maxima X, Maxima XX, Maxima XXX, Aldik and T-Market stores: 237 in Lithuania, 150 in Latvia, 74 in Estonia, 61 in Bulgaria and 30 in Poland. Compared to 535 shops operated in 2015.
Maxima Grupė, UAB is a holding company founded in 2007, which controls retail trade companies in Lithuania, Latvia, Estonia, Poland, and Bulgaria. At the end of 2016, “Maxima Grupė” companies employed 30,945 people, with more than a half (16,555) of them working in Lithuania.
Comment of Robertas Čipkus, CEO at Maxima Grupė, UAB
Operating under the increased competition in 2016 “Maxima Grupė” companies were actively transforming their business. Corporate governance structure was reorganized and the management of subsidiary companies in Lithuania, Latvia, and Estonia was strengthened. The active business development has been implemented in Bulgaria and the reorganisation of business started in Poland.
The turnover of “Maxima Grupė” remained stable, while the decreased profits of the group were mainly influenced by unusual one-off costs.
We see great opportunities for further business growth in 2017. Macroeconomic situation in markets where our business enterprises operate remains stable, consumers’ expectations are improving, and consumption is growing. We will continue to expand business growth in foreign markets and to strengthen existing positions in Lithuania, where the largest part of “Maxima” business is located.
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