For another year running, Mercadona has shared its profits amongst the company's components: 25% between Employees by way of performance-related bonuses, 25% with Society by means of taxes, and a further 40%, which has been invested to increase its own resources; the remainder has been divided among the shareholders by way of dividends.
- Net profit registered at 543 million Euros, a 5% increase over 2013, which accounts for 2.9% of the sales figure.
- In 2014, Mercadona reached record-level investment figures: the investment generated by Mercadona's activity was 1,155 million Euros, 655 million of which were direct investments, and 500 million corresponded to those carried out by integrated suppliers.
- Mercadona's commitment towards a digital transformation, exemplified by means of its new Data Processing Centre, represents a total investment of 120 million Euros.
- In 2014, Mercadona's tax contributions reached 1,484 million Euros.
2014 saw Mercadona's turnover rise by 2% reaching 20,161 million Euros. At the end of the year, the company's net profit, which accounts for 2.9% of the sales figure, was 543 million Euros, a 5% increase over 2013. Sales by volume have also grown by 3%, reaching 10,103 million kilos and litres (kilitros) thanks to the trust placed in the company by more than 4.9 million households who shop at Mercadona's supermarkets.
The company registered record investment levels, with more than 655 million Euros allocated for the opening of 60 new supermarkets, which saw the network grow to 1,521 stores, as well as the refurbishment of a further 30. Other significant investments included the building of the Abrera logistics block (Barcelona), which is already in the first stage of operations, and the development and start-up of the new Data Processing Centre, a pioneering project that will tackle the company's digital transformation, at an investment of almost 120 million Euros.
Similarly, as with the previous year, the company has broken down the amounts corresponding to tax contributions in the country, which in 2014 were 1,484 million Euros. From this total amount, 639 million Euros correspond to Social Security contributions, 236 to corporation tax, 533 to VAT and PIT, and 76 million Euros to other taxes and duties.
Family savings: Prices at 2012 levels
Through a number of different initiatives, in 2014, Mercadona has managed to cut its shopping cart menu prices by 2%. According to Juan Roig, "as a company, our commitment to our Bosses is to offer a 'Shopping Cart Menu' that has high quality products at the lowest price. This has helped us to achieve the same average sales price in 2012" , an objective he framed within the "commitment that clients may shop at Mercadona at minimum monthly expenditure".
"To this end, all of us at Mercadona", continues Juan Roig, "must be conscious of the fact that in order to fulfil our sales, profits and new store opening goals, we must start by satisfying the needs of our Bosses, guaranteeing quality in our routine work and providing an effective selection that adds value and for which the Bosses are willing to pay".
Mercadona: Sharing the profits generated
One of Mercadona's mottoes is that when shared, success feels better. Therefore, in 2014, the company has once again shared the total profits obtained with its components. In this way, 25% has been divided amongst employees (263 million Euros in performance-related bonuses), 25% with Society (236 million Euros in corporate tax), 40% has been reinvested (446 million Euros to increase the company's own resources), and the remaining 10% has been divided amongst the shareholders as dividends.
5% growth in new fresh sections
In 2014, the company has continued to grow in its new fresh products sales models. At year-end, all of its supermarkets had implemented the new bakery section and locally-sourced fruit and vegetable section, after having also implemented the new fresh fish section in September 2013.
The new management of fresh product selection has allowed for the strengthening of local economies, as well as boosting locally sourced products, which have been well accepted by clients. This new strategy based on quality and local sourcing has contributed towards Mercadona increasing its fresh product market share by 5%.
In this respect, the company has declared that continued, solid growth must be one of the consequences of the close collaboration maintained with the more than 6,000 farmers, 4,000 cattle breeders and 12,000 fishermen with whom the company operates. To this end, this relationship must be based on the mutual knowledge of the processes used, which allows for continuing to advance towards Mercadona's high productivity Sustainable Agri-food Chain, with the common objective of always offering fresh, high quality products at low prices and increased alimentary safety.
An industrial cluster of more than 220 factories in Spain
With the objective of encouraging corporate initiative, which is a key differentiating factor for a country's development, in 2014, the integrated suppliers who produce Hacendado, Bosque Verde, Deliplus and Compy products amongst others, invested almost 500 million Euros, mostly destined towards the opening of new factories and production lines. Additionally, they have closed the exercise with a joint workforce of 43,000 employees.
As a result of this long-term investment plan, which started accelerating in 2008, Mercadona and its 120 integrated suppliers now have more than 220 factories in Spain, making it one of Europe's most dynamic, innovative agri-food clusters.
Commitments for 2015
In 2015, Mercadona plans to invest approximately 650 million Euros, destined mainly towards the opening of 60 new stores, the refurbishment of a further 30, continuing the building of the logistics block in Abrera (Barcelona), and the start of the new logistics block in Vitoria-Gasteiz.
Juan Roig has expressed that "as president of Mercadona, I am proud to count on the commitment of the 74,000 workers, 120 integrated suppliers and suppliers, and the primary sector serving Mercadona's Sustainable Agri-food Chain. Without a doubt, it is thanks to their hard work that the company has been able to present today's extraordinary results, and it will further help us continue to move forward in a sustainable manner towards the development of the joint corporate project".
MERCADONA: SOME RELEVANT OCCURRENCES OF 2014
| 2013 | 2014 | Comments | |
|---|---|---|---|
| Stores | 1.467 | 1.521 | 56 net (60 inaugurations // 6 closures) |
| Sales inc. VAT* | 19.812 | 20.161 | +2% |
| Sales units "kilitros" ** | 9.845 | 10.103 | +3% |
| Sharing profits: | |||
| Workers (performance-related bonuses)* | 257 | 263 | +2% |
| Tax contributions* | 1.465 | 1.484 | +2% |
| Net profit | 515 | 543 | +5% (2.9% sales) |
| Investment* | 650 | 655 | 1% |
| Own Resources* | 3.438 | 3.884 | +14% |
| Total company workforce | 74.000 | 74.000 | = |
* In millions of Euros
** in millions of kilos/litres
Juan Roig during the presentation of the 2014 annual results.
Juan Roig and the members of the Management Committee during the presentation of the 2014 annual results.