One part of Netto with profit
In 2023, Netto achieved a net profit of PLN 69.4 million, which was allocated to reserve capital as a source of financing for the company's future investments. A year earlier, the profit was similar and amounted to PLN 69.8 million. Revenues increased by 6.9%. from PLN 6.6 to PLN 7 billion (with inflation at 11.4%). The number of stores owned by Netto increased by 1 from 417 to 418 (but outlets run by Netto Indygo also have the Netto logo). Employment in the company decreased by 44 employees last year to 5,480 people. The remuneration of the management board members amounted to PLN 5.9 million, but the network informs that the management board is mostly remunerated at the level of Salling Group A/S. Members of the management board residing in Denmark did not receive remuneration during the indicated period, we read in the report.
read more
Biedronka: unprecedented challenges. The price war backfires
read more
They run 218 stores in Poland. They are taking over a well-known brand
Inheritance from Tesco, i.e. Netto Indigo
The situation in Netto Indigo (formerly Tesco Polska) is much worse. The company continued the process of selling the properties in which it had ceased to operate. However, the company does not disclose how many properties it has sold. As a result, it achieved a result of PLN 41.3 million. At the beginning of March 2022, the Netto logo had 231 branches and 15 were still waiting for rebranding. Calculations show that Netto Indigo operated 242 locations at the end of 2023. In total, at the end of 2023, the Netto logo had 660 stores in Poland (Netto and Netto Indigo companies together). In 2024, the chain launched 4 new stores and currently operates 664 outlets.
However, the company reports that its net financial loss for the financial year from March 1, 2022 to December 31, 2023 (for nearly 2 years) amounted to PLN 335.3 million. Net capital expenditure of Indigo amounted to PLN 120.2 million in the reporting period. Sales revenues amounted to PLN 4.48 billion in total. In the financial year March 2021-March 2022, the company recorded a loss of PLN 481.7 million, and capital expenditures amounted to PLN 664.6 million. Revenues amounted to PLN 2.76 billion.
In the financial year from March 1, 2022 to December 31, 2023, the remuneration of management board members amounted to PLN 1.3 million. During this time, the number of employees decreased from 3,688 in February 2022 to 2,705 in December 2023 (a decrease of 983 people). Both companies employ a total of 8,185 people. In 2020, the acquired Tesco employed 7,000 in 301 branches and its headquarters. people.
In the balance sheet year, Netto Indygo Sp. merged. z o. o. with its subsidiaries: April 27, 2022 Genesis Sp. z o. o. and Jasper Sp. z o. o. and 11/07/2022 Netto Indygo Dystrybucja Sp. z o. o. The mergers took place by transferring all assets of the acquired companies, which were a sole proprietorship of the acquiring company, to the acquiring company (merger by acquisition). As a result of the merger, the acquired companies were deleted from the register.
Net Indigo's 5-year strategy
In 2023, the 5-year Net Indigo strategy covering the years 2024-2028 came into force. In October 2023, a birthday campaign was introduced, thanks to which Netto's weekly market share increased to a record level. The plan is to further facilitate shopping, add new assortments that meet customers' everyday needs and provide new inspirations thanks to the SPOT program and promotions. The company's management believes that efforts to ensure product availability and new trade mechanisms will increase the network's importance on the market and will have a positive impact on the company's results.
On June 29, 2022, as a result of the resolution adopted by the Extraordinary Meeting of Shareholders, the company's share capital was increased by PLN 653.7 million through the creation of 1,307,426 new shares worth PLN 500 each. The newly created shares were acquired in exchange for a non-cash contribution (in-kind contribution) in the form of receivables due to the sole shareholder, i.e. Salling Group A/S, due to the company under intra-group financing in the amount of PLN 977 million. Due to the fact that the newly created shares were acquired for an amount higher than their total nominal value, the surplus of PLN 323.3 million was transferred to supplementary capital.
Continuation of Netto Indigo's operations
Due to the loss incurred by the company in the amount of PLN -335.3 million and
negative cash flows from operating activities in the amount of PLN -248.7 million, the accumulated loss shown in the report exceeded the sum of supplementary and reserve capitals and half of the share capital. However, the company received assurances from the parent company of financial support for a period of at least 12 months from the date of receipt of the letter, i.e. April 15, 2024. Therefore, the company does not see any threats related to the continuation of its operations.
