Mercadona had a total turnover of 35,500 million euros in 2023, 15% more than in 2022, and achieved a net profit, after paying taxes and distributing the premium among its 104,000 employees, of 1,000 million euros. 40% more than in the previous year. In addition, last year the Valencian firm increased its market share in the distribution sector in Spain by 0.6% to reach 27.6%, with a total of 1,681 stores in Spain and Portugal. The data was announced yesterday by its president and main shareholder, Juan Roig, who stressed that the past financial year “was very good” and that the future of the company will be “spectacular”.
He explained how the company, which contributes 2.1% of GDP to Spain, has had “the best year” even though it has had to take “unpopular measures”. “Since 2016 we have taken brave and sometimes unpopular and annoying decisions”, explained the businessman in relation to the closure or change of location of the various stores. In the last year, the company has moved 400 stores, “a fact that is always a problem for the customer, but it had to be done”, and has closed 130 more. With the changes, the company has already renovated 80% of its supermarkets, with an investment over the last eight years of 10,000 million euros.
He also stated that one of the important factors for this result is the increase in tourism “in the two countries in which we are present, in Spain and Portugal”. Ten stores were opened in Portugal last year. “We are just starting in that country, we have been there for four years, but we want to be Portuguese, even though one does not become Portuguese by becoming a national,” acknowledged Roig. He also announced that the largest logistics block of the entire chain will soon be opened in Portugal. “The customers in Portugal have received us well”, he added, before emphasizing that in that country “we had no losses last year”. A situation that occurs for the first time since the company opened its first establishment there in 2019.
Regarding prices, Roig explained that the price of the menu cart has fallen more than inflation has risen. The drop affected a thousand products (500 in April 2023 and 500 more in February 2024), although he acknowledged that, due to the cost of raw materials, “we have also raised the price of chocolates, pastas, ‘olive oil and rice’. He also pointed out that 85% of purchases are made in Spain.
The president of Mercadona went in yesterday to assess the unrest in the agricultural, livestock and fishing sectors, and assured that “we are playing with agriculture in Spain”. He assured that “farmers must earn money” and pointed out the risk in Spain for a sector that is “the vegetable garden of Europe”. He warned that “we have to take care of the countryside, but we don’t know how to take care of it. We can touch the part that belongs to us, but not beyond”. He acknowledged that from the company “it is very difficult for them to explain” the difference in prices at origin and in the market, which is due to the fact that the costs in the agri-food chain “are very high” for fresh products.
