Maxima Group's 2024 Financial Overview: Growth and Challenges
Maxima Group Reports Revenue Growth in 2024
The Baltic retail leader MAXIMA GRUP?, UAB, renowned for its extensive retail chains throughout the region, has presented its consolidated financial performance for the year. The company operates a variety of brands, including "Maxima" in Lithuania, Latvia, and Estonia, and "Stokrotka" in Poland, enhancing its market presence by providing consumers with diverse shopping options.
Revenue Performance
In 2024, MAXIMA GRUP? achieved a notable revenue of EUR 6.098 billion, marking a modest increase of 4.3% compared to the previous year. The strongest growth was evident in Poland, where revenues rose by 8.7% to reach EUR 1.890 billion. Bulgaria also saw growth, with revenues increasing by 6.7% to EUR 294 million. Other Baltic regions reported various growth rates: Lithuania experienced a 3.1% uptick, Latvia a 2.6% increase, and Estonia a more modest growth of 0.9%. However, the e-commerce sector faced challenges, with total gross revenue declining to EUR 160.5 million due to the cessation of Barbora's operations in Poland. This transition impacted the overall performance of its e-commerce channels, although a growth of 7% was recorded in other Baltic countries.
EBITDA and Profitability
MAXIMA GRUP?'s earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2024 reached EUR 455.6 million, reflecting a 4.9% decrease compared to the prior year. The margin slightly slipped by 0.7 percentage points, settling at 7.5%. Despite these financial hurdles, the company's strategic projects and investments have contributed to maintaining market positions in a competitive landscape.
Strategic Investments for Growth
According to CEO Manfredas Dargužis, the Group has remained committed to its long-term strategies by investing heavily in business development. The supermarket chain focused on enhancing its private label offerings, introducing the premium “Well Done Premium” range during the festive season across all operational markets. MAXIMA GRUP? opened 36 new stores in Poland and 13 in Bulgaria, alongside expanding its presence in the Baltic countries with an additional six locations. This expansion included a strategic focus on efficiency by standardizing store formats and assessing the viability of existing locations.
Investing in Infrastructure
Investment has been a cornerstone of MAXIMA GRUP?'s strategy, with total fixed asset investment increasing by EUR 21 million to EUR 190 million. A standout project was the establishment of a new logistics center in Lithuania, covering 46,000 square meters with modern technology aimed at enhancing supply chain efficiency. This center significantly aligns with the Group’s environmental goals as well, leading to improved shipping processes.
Sustainability Initiatives
Recognizing the importance of sustainability, MAXIMA GRUP? has implemented several initiatives to reduce its energy footprint. These measures include the installation of energy-efficient equipment, expansion of recycled packaging, and the introduction of solar power solutions in major store locations. The organization has set ambitious targets, estimating that achieving their sustainability goals may require investments of up to EUR 100 million by 2030 to align with the Paris Climate Agreement.
Community Engagement and Support
As part of its corporate responsibility, MAXIMA GRUP? collaborates with various charities and food banks, increasing its contributions by donating 4,207 tonnes of unsold but safe-to-eat food, a 13% increase from the previous year. This initiative not only supports local communities but also reduces waste, showcasing the Group's commitment to social responsibility.
Financial Stability and Future Outlook
The Group has maintained a stable financial position, ending the year with a consolidated net debt to EBITDA ratio of 2.3. The sole shareholder, Vilniaus prekyba, approved the Group's financial statements, including a profit distribution plan that allocates EUR 106.3 million for dividends. As MAXIMA GRUP? advances, its dual approach of expanding its store network while focusing on efficiency will be crucial in sustaining growth and navigating future market challenges.
Frequently Asked Questions
What is the total revenue of MAXIMA GRUP? in 2024?
MAXIMA GRUP? reported a total revenue of EUR 6.098 billion in 2024.
How much did the EBITDA decline in 2024?
EBITDA declined by 4.9% in 2024, amounting to EUR 455.6 million.
Where did the most significant revenue growth occur?
Poland and Bulgaria experienced the most significant growth, with revenues rising by 8.7% and 6.7%, respectively.
What sustainability measures are being implemented by MAXIMA GRUP??
MAXIMA GRUP? is focusing on energy-efficient equipment, increased recycling, and implementing solar power plants in its stores.
How much is allocated for dividends in 2024?
A total of EUR 106.3 million was allocated for dividend payments to the shareholder, Vilniaus prekyba.
About The Author
Contact Ryan Hughes privately here. Or send an email with ATTN: Ryan Hughes as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.