Company divides 263 million euros among employees: 240 in productivity bonuses and an extra 23 in compensatory bonuses
- Turnover grows by 7% to reach 19,077 million euros
- Net profit recorded at 508 million euros, 7% more than 2011, representing 2.9% of sales
- With the goal of enhancing the value of the primary sector in Spain, the company will continue to allocate major funding and resources for the development of a Sustainable Agro-Food Chain.
- Juan Roig: "Mercadona is going to maintain its focus on providing quality employment. As president of the company, I am pleased to be able to say that all our checkout and shelf stacking staff with over four years at Mercadona have a salary, including goal-related bonuses, of over 1,600 euros a month".
In 2012 Mercadona created 4,000 new permanent jobs, raising its workforce to a total of 74,000. In doing so, the company reinforced its commitment to the creation of quality permanent employment in Spain. This policy is demonstrated by the fact that, despite the complicated current situation, it has taken on a total of 14,000 new employees over the last five years.
At the end of 2012, and thanks to the firm commitment of all its workers and to the ongoing loyalty and trust of its customers, the company increased its turnover to 19,077 million euros, a 7% increase on 2011. Likewise, it saw a rise in sales per unit of floor space of 2%. In addition, its volume of sales grew by 6%, rising to 9,647 million kilos and litres (kilitres).
Yet again this year, Mercadona has managed to increase its productivity, with a growth of 1%. This improvement, on top of the ongoing efforts of all members of the company and the various different initiatives implemented to improve efficiency, has enabled a net profit of 508 million euros, 7% more than 2011, accounting for 2.9% of the total sales figure.
As part of its core policy of linking part of their salary to profits and productivity, Mercadona has divided 240 million euros among its employees in performance-related bonuses. Furthermore, one also has to add an extra 23 million euros in compensatory bonuses which the company decided to give out in order to neutralise the effects of the rise in income tax deductions. With this additional hand-out, Mercadona wanted to guarantee that all its employees would take home at least the same salary as in 2011.
In the words of Juan Roig, "Mercadona is going to maintain its focus on providing quality employment. As president of the company, I am pleased to be able to say that all our checkout and shelf stacking staff with over four years at Mercadona have a salary, including goal-related bonuses, of over 1,600 euros a month".
Mercadona: Special Focus on the Primary Sector and the Sustainable Agro-Food Chain
In 2012, Mercadona implemented various measures to increase its commitment with the development of a Sustainable Agro-Food Chain. In fact, the company has been working on this plan jointly with its integrated suppliers over the last few years. Although there is still a long way to go, the ultimate goal of the project is to enhance the value of the primary sector in Spain and create a structure for local economies.
To this end, throughout the year it worked closely with the primary sector, and signed agreements with over 4,200 farmers, 3,200 cattle raisers and 41 fishing associations from which it buys over 90 tonnes of fresh fish every day. In addition, and as part of its ongoing search for sustainable solutions for the primary sector, it has also set in place a number of specific schemes, like for instance the joint decision with integrated dairy suppliers to pay an extra 2.5 cents per litre for milk purchased from dairies. 2,000 dairy suppliers in Spain who supply milk for the Hacendado brand have already taken advantage of this agreement.
As part of this priority commitment with the primary sector, in which the company believes that there is an obvious window for growth and improvement, Mercadona will continue, over the coming years, to set aside major funding and resources to help develop a Sustainable Agro-Food Chain in Spain. As a result, and given the investment forecast in this field over the next few years, it has decided to postpone its international project temporarily, though it will continue to analyse any opportunity that may arise in this period.
The Challenge of Adapting: Laboratories and Apron Strategy
Throughout 2012 the company continued to address a challenge it believes to be of primary importance: to adapt quickly and dynamically to its customers’ needs. To this end, it actively encouraged its workforce to put forward new ideas and projects. These were then analysed and tested with the collaboration of its customers, and many of them led to the introduction of improvements. In fact, in many of its stores, the company has set up what it is calling "laboratories", special areas which have been designed to interact with customers and their experience in order to introduce improvements in stock, services and processes. At the current moment, and focused on the challenge to enhance its fresh produce section, Mercadona has specific “laboratories” in its Bakery, Fish, Fruit and Vegetables, and Meat sections.
Investments in 2012 and forecasts for 2013
In 2012, Mercadona invested 650 million euros, a sum which went mainly towards the opening of 60 new stores, which brought it up to a grand total of 1,411 stores at the end of the year. Furthermore, the company spent major funding on equipping and refurbishing 55 stores in order to upgrade them to the company’s current standards, and also on the construction of a satellite warehouse in Fuerteventura (Las Palmas) and the ongoing construction of the logistic blocks in Guadix (Granada) and in Abrera (Barcelona).
For 2013, Mercadona will maintain investment at around 600 million euros, mainly set aside for the opening of 60 new stores, the refurbishment of existing stores, and to continue work on the construction of the logistic blocks in Guadix (Granada) and Abrera (Barcelona). In addition, the company also envisages the creation of 1,000 new permanent jobs, as well as to start looking for possible locations to open its first store in the Basque Country in the final quarter of 2014 or the beginnings of 2015.
According to Juan Roig, "Mercadona’s engagement with wealth creation in Spain is backed up by actions. We are setting aside major funding and resources to develop a Sustainable Agro-Food Chain. At once, we are maintaining our focus on guaranteeing our `Bosses´ more quality at lower prices, which, to our way of thinking, is more important than ever for family economies in the current times".
MERCADONA: STANDOUT FACTS AND FIGURES FOR 2012
| 2011 | 2012 | Observations | |
|---|---|---|---|
| Stores | 1.356 | 1.411 | 55 (60 openings // 5 closures) |
| Sales (incl. vat**) | 17.831 | 19.077 | +7% |
| Sales units “kilitres”** | 9.079 | 9.647 | +6% |
| Sharing profits **. | |||
| Workers (performance-related bonuses)** | 223 | 240 | |
| Workers (compensatory bonuses) | 23 | ||
| taxes* | 225 | 244 | |
| Net profit | 474 | 508 | +7%(2.9% sales) |
| EBITDA** | 1.040 | 1.082 | +4% (2,9% s/ventas) |
| Investment** | 540 | 650 | +20% |
| Own resources** | 2.673 | 3.019 | +13% |
| 100% workforce with permanent contracts | 70.000 | 74.000 | +4,000 new employees |
* Million kilos/litres
** Million euros
Juan Roig at the presentation of Mercadona's annual results for 2012.
Juan Roig and members of Mercadona's Management Committee at the presentation of the company's annual results for 2012.