SPAIN: Weak economy hits Eroski profits
By Dean Best | 20 May 2011
Spain's weak economy hit profits at retail co-operative Eroski in 2010, the company has announced.
Eroski, which has over 2,200 outlets throughout Spain, reported a 9% fall in net profit to EUR93.2m (US$133.5m). The retailer's EBITDA was lower, at EUR419m, down from EUR434m in 2009.
The fall in profits came on the back of a 3% fall in sales to EUR8.17bn. Eroski said on Wednesday (18 May) Spain's economy had "hinted" of an upturn in demand in the first half of 2010 but any recovery was "cut short" in the second part of the year. The retailer pointed to rising uemployment, an increase in VAT and household savings.
Eroski said it "strengthened" its cost-saving measures to cope with the fall in demand. It also launched an entry-level own-label Basic Eroski during 2010.
Sectors: Financials, Private label, Retail
Companies: Eroski
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