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“16 new stores scheduled in 2019, including 2 hypermarkets and 2 Atacadao, with 30,000 m2 of additional space, covering all activities. A global investment of MAD 600 million,” announces the management of Label’Vie. This was during the analysis of the financial results on March 22 in Casablanca. Of the 16 units programmed, three Carrefour Market stores have already opened their doors during this first quarter of 2019.
The trend is therefore to accelerate store openings across all formats for a denser national network. In 2018, the group added 13,800 m2 of additional sales area with the opening of 16 new “Carrefour Market” outlets and a “Carrefour” hypermarket.
This resulted in the creation of nearly 1,038 new jobs last year. At the end of December 2018, the group’s network amounted to 92 points of sale, for a total area of 187,398 square meters spread over 24 cities.
Overall investment amounted to 519.4 million dirhams in 2018. Last year was also marked by the reinforcement of the presence of the group’s banners in the northern regions, with the opening of 4 supermarkets in Tangier, Tetouan and Nador.
On the strength of this dynamic, 2018 sales amounted to 9 billion dirhams, an increase of 9% compared to 2017. In the opinion of the management, this evolution is driven by the performance achieved by the ‘set of business segments’.
Moreover, the hypermarket format (Carrefour) went into turbo mode with a rise of 13%. In addition, the supermarket segment (Carrefour Market) is growing strongly (11%). In the Atacadao segment, sales were up 6.4%.
Consolidated operating profit is up 20%. It stood at MAD 427 million. This is explained by the sharp increase in business volumes and the effects of economies of scale on operating expenses. Economies of scale have been achieved in particular on the expenses of the Centrale and the logistics. This made it possible to improve the group’s operating expenses by 0.1bp compared to sales.
Management claims a GRIP which has improved by 20% compared to 2017. It stood at MAD 288.4 million. Adjusted earnings increased to MAD 402.1 million (compared with 323.4 million in 2017), an increase of 24%. The Board of Directors will propose to the General Meeting of Shareholders the distribution of a global dividend of 150 million dirhams.
In Africa, the Label’Vie group is making fundamental changes in the business model. “We are on a model of low cost stores. We are resizing our formats. The first indicators are good and support our decision,” said Zouhair Bennani, CEO.
