"Maxima Grupė" in 2023: 13% Revenue Growth, Focus on Low Prices, and Expansion in Poland

Retail leader in the Baltic States MAXIMA GRUPĖ, UAB, which manages "Maxima" retail chains in Lithuania, Latvia, and Estonia, "Stokrotka" in Poland, "T-Market" in Bulgaria, and the online store "Barbora" in the Baltic States, announces consolidated financial results for 2023.

Despite the volatile economic situation in all MAXIMA GRUPĖ's operating markets, the Group managed to maintain financial stability in 2023. Amid high inflation, the Group consistently pursued the expansion of retail chains and steadily increased revenue. Consolidated revenue reached 5.845 billion euros, showing a 13% increase compared to the previous year. Nearly half of the Group’s revenue growth resulted from the increase in the “Stokrotka” retail chain turnover. Consolidated EBITDA of MAXIMA GRUPĖ reached almost 479 million euros, showing nearly 30% increase compared to 2022. EBITDA growth was driven by several factors, including increased revenue attributed to higher average basket sizes and customer traffic to the Group’s stores, as well as reduced energy expenses and improved efficiency across store and logistics operations. The Group's EBITDA margin returned to its year 2021 level of 8.2%, which is 1 percentage point higher than in 2022.

Poland and Bulgaria remained as the main directions of the Group's expansion. Poland’s retail network expanded by 60 stores, continuing expansion pace for the fifth year. Revenue growth in Poland reached 24.7%. In Bulgaria, the store network expanded by 12 stores, and revenue grew by 15%. Additionally, 4 new stores were opened last year in the Baltic countries: 2 in Lithuania and 2 in Estonia. Revenue in the Baltics increased in 2023 by 8.7%: in Lithuania by 7.9%, in Latvia by 10.1%, and in Estonia by 8.6%. Revenue from the Group's e-commerce channels grew by 5.5%.

According to Manfredas Dargužis, the CEO of MAXIMA GRUPĖ, the Group aimed to maintain stability in volatile market conditions and continued to implement goals: "High inflation and reduced consumption in the markets where the Group operates in 2023 prompted the Group's companies to focus on implementing new sales promotion strategies and offering attractive pricing to customers. The Group also continued with the previously set goals: expansion in Poland and Bulgaria, standardization of store formats, development of private labels, and streamlining of business processes."

The Group’s investments in expansion and store renovation, compared to 2022, increased by 45%, and in 2023 amounted to over 168 million euros. In 2023, the construction of a 46,000 square meter logistics center began in Lithuania, with a planned investment of 70 million euros. From this warehouse, which is scheduled to start operating in 2024, goods will be delivered to all "Maxima" stores in Lithuania, significantly contributing to the overall network efficiency. The process of standardizing store formats initiated in the Baltic States in 2021 reached its final stage in 2023 – by the end of the year, at least 70% of stores in all countries were standardized according to a unified store format. Standardizing store formats is also important for more efficient management of retail chains. Out of 499 stores in Lithuania, Latvia, and Estonia, 369 stores are operating in a standardized format.

At the beginning of the year, a new brand "Well Done" was introduced, which offers high-quality food products at a lower price. By the end of the year, "Well Done" covered more than 400 different products, and the share of all private label sales from total Group sales reached 18.8%.

The companies controlled by MAXIMA GRUPĖ in all countries are an important part of the communities and take responsibility for their activities and their potential impact on the environment. In early 2023, MAXIMA GRUPĖ joined the international "Science Based Targets" initiative and committed to achieving goals aligned with the Paris Climate Agreement. The Group's goals were officially approved by the end of 2023 under the global "Science Based Targets" initiative, and MAXIMA GRUPĖ officially joined the most advanced companies participating in this initiative worldwide.

The Group's companies cooperate with various charity organizations and food banks in their countries, donating a portion of unsold but safe-to-consume food products to them. The total amount of food donated to food banks and other charity organizations increased by 82% in 2023 and reached 3,727 tons.

In September 2023, MAXIMA GRUPĖ redeemed long-term bonds upon the expiration of a five-year term. During 2023, the Group's debt level decreased, and the ratio of consolidated net debt to EBITDA at the end of 2023 was 2.0.

The sole shareholder of MAXIMA GRUPĖ, UAB "Vilniaus prekyba," approved the company's and Group's consolidated financial statements for 2023 and the profit distribution project, according to which, taking into account the dividend payment policy, dividends of 123 million euros were allocated to Vilniaus prekyba in 2023.


Additional Information

MAXIMA GRUPĖ, UAB manages retail chains MAXIMA (in the Baltic countries), STOKROTKA (in Poland), T MARKET (in Bulgaria), and the online food store BARBORA, operating in the Baltic countries.

MAXIMA GRUPĖ, UAB is part of the Vilniaus prekyba group of companies. Through its other subsidiary companies, Vilniaus prekyba controls investments in retail and pharmacy chains, restaurant chains, as well as real estate development and rental service companies in the Baltic countries, Sweden, Poland, and Bulgaria.

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