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AB Vassilopoulos: Getting back to profitability

AB Vassilopoulos’ main priorities are returning to a profitable trajectory this year and adjusting its strategy along the axis: prices, variety and service.

The head of the Greek subsidiary of the Ahold Delhaize group, Nikos Lavidas, stated in a press conference, that the spearhead for the development strategy is to change the perception of domestic consumers who consider that AB Vassilopoulos is a more expensive chain, as this is not true.

AB Vasilopoulos recorded net losses of 2.476 million euros in 2022 compared to profits of 30.728 million in 2021, as well as a marginal increase in turnover by 0.76%, to 1.98 billion, from 1.965 billion in 2021. The operating profits of the chain recorded a decrease to 20.143 million, from 66.727 million in 2021, while it also recorded pre-tax losses of 2.098 million compared to profits of 42.972 million euros. The gross profit margin fell to 25.97% from 27.35%, while investments totaled 65.4 million euros and was allocated to the expansion and upgrading of the sales network through organic growth and to the renovation of the stores.
As Lavidas pointed out, “commenting on the results of 2022 some say that we are losing our pace. However, there may be another interpretation. We renew, we invest, we tried to support the household basket and all this led to losses. Obviously no company should record losses, but sometimes it is unavoidable. And we had to do it and we did it consciously and if necessary we will do it again.”

According to him, the decrease in profits is due to a number of factors, starting with the significant increase in energy costs, which after state subsidies doubled to 24 million euros. Also, corresponding inflationary increases in the supply chain – fuel and transport – negatively impacted results by 9 million euros, while participation in the “household basket” of over 70 products negatively impacted results by 1 million in just two months of implementation of the measure.