Although you are already feeling the positive effects of your restructuring, Yes closed the first half of the year with losses of 104 million euros, a figure similar to that recorded during the same period of the previous year. The supermarket chain, however, improved its sales on a like-for-like basis and also in total terms, despite a smaller network of stores. He assures that his transformation has been achieved at 80%, but he also indicates risks on the horizon, with inflation that has already changed consumer behavior.
In its first-half results release, the company owned by Letterone assures that turnover increased by 8.5% compared to the first half of 2021, despite a reduction in the number of stores (by 4.3%) and in terms of comparable turnover (Like-for-Like , in industry jargon) also grew, up 2.6% from the same period in 2021. The company stands out against the National Stock Exchange Commission (CNMV) “the good evolution recorded in the second quarter, with positive growth in all the markets in which the group operates”.
But there are ‘challenges’ ahead, as he acknowledges Stephan DuCharme, CEO of the company. The economic scenario is, in his words, “complex” and marked by inflation, with rising prices for raw materials, fuel and energy. These effects are already visible in the behavior of consumers, who increase the frequency of visits to stores, but make purchases of lower value. This results in an increase in the number of tickets of 5.7% during the first half of the year and in turn a reduction of 2.9% in the amount of the average basket.
At the same time, the company is continuing its restructuring plan, already 80% completed. Asure that the first trimester was a turning point, as the positive effects of this transformation are beginning to be felt. In Spain, 68% of the local network has moved to the new store concept and in Argentina the network has been remodeled to 39%. Brazil and Portugal maintain “significant progress in the implementation of their economic models”, assures the company.
With all, losses were around 104.7 million euros, they are therefore reduced by 0.1% compared to the first half of 2021. The good news is that gross profit, in which operating costs and rents are not included, improves by 5% over the course of the same period. EBITDA, on the other hand, is reduced by these expenses added to the rising restructuring costs, since until June 121 stores were closed in Brazil and 113 in Spain.
After the mid-year, the company highlighted other milestones it recently disclosed, such as the sale of 235 stores to Alcampo in Spain. The forecast is to get rid of 18,000 square meters of commercial space and register nearly 267 million euros. The price of the operation will be paid entirely in cash and may vary depending, among other parameters, “on the total number of assets finally sold”, she explains in her half-yearly accounts to the CNMV.