Strong annual accounts pave the way for lower prices and new investments

The total revenue increased in 2017 by DKK 906 million to DKK 58.8 billion, with an EBIT of DKK 2.472 billion, as opposed to DKK 2.164 billion the year before, while EBITDA came to DKK 3.006 billion. Adjusted for extraordinary items, EBIT came to DKK 2.134 billion in 2017, as opposed to DKK 2.100 billion in 2016, while the adjusted EBITDA came to DKK 3.166 billion, as opposed to DKK 3.006 billion the previous year.

In total, DKK 1.454 billion was invested in stores and IT; an increase of DKK 215 million compared to 2016. In addition, Dansk Supermarked Group bought 80% of the shares of the North Jutland company Skagenfood A/S, which has a strong position within the meal box market.

Dansk Supermarked Group CEO Per Bank says of the 2017 accounts:

- We are satisfied with the 2017 result, given that we were able to increase revenue both abroad and at home. On top of that, Netto Denmark had its strongest year ever and our earnings improved. We also undertook a number of strategic projects that support the company's long-term development.

Of the strategic initiatives carried out last year, the financing of the Salling Foundations’ acquisition of the remaining 19 percent of shares from A.P. Moller-Maersk stands out as the most significant. In addition, Dansk Supermarked Group opened 50 new stores in Denmark alone, including the takeover of the Kiwi leases when the discount chain left the Danish market. Additionally, Dansk Supermarked Group divested the non-core property Næstved StorCenter.

A busy 2017 cements Dansk Supermarked Group's position

In 2017, Dansk Supermarked Group invested in the permanent reduction of more than 2,000 prices in føtex, while Netto in Germany, Sweden and Denmark tested new store concepts. Online, in 2017 wupti.com was opened up as a marketplace for all Danish web stores, and has since reached 500,000 products, while the launch of BilkaToGo gave consumers the possibility of buying food online using a click-and-collect solution. BilkaToGo will be launched in every Bilka hypermarkets.

The 2017 result gives Dansk Supermarked Group an increased opportunity to invest in the future via modernised stores, better shopping experiences and quality products at competitive prices, while also launching new, innovative solutions online and in the physical stores.

– We expect over the next few years to further strengthen our position in Denmark as well as continuing digital investments and increasing the pace of expansions in Sweden and Poland, says Per Bank, CEO of Dansk Supermarked Group.

With the Salling Foundations as the sole owner, Dansk Supermarked Group’s profits are only used for two purposes: investing in the company and donations via the Salling funds.

Since 2012 alone, the Salling Foundations have donated more than DKK 850 million to the arts, culture, sport and other non-profit activities in Denmark. Investments and donations that help make a difference in everyday life will be a strong, forward-looking focus for Dansk Supermarked Group:

– As a 100% foundation-owned company, we fully recognise our social responsibility and will look for opportunities that we, as a Danish company, have to improve everyday life for our customers, partners and the communities we are part of, explains Per Bank.  

Key figures 2012-2017

Dansk Supermarked Group	2017	2016	2015	2014	2013	2012
Total revenue	58,805	57,899	57,474	57,156	56,941	55,702
EBITDA	3,006	3,006	3,136	3,167	3,134	2,508
Operating profit (EBIT)	2,472	2,164	2,558	2,430	2,385	1,661
Profit before tax	2,231	1,763	2,250	2,349	2,543	1,988
Total profit for the year	1,698	1,322	1,739	1,819	1,922	1,400
ROIC	15%	10%	12%	11%	11%	8%
Return on equity	35.1%	17.3%	22.9%	11.8%	8.2%	6,2%
Profit margin	4.2%	3.7%	4.5%	4.3%	4.2%	3.0%

Last year depreciations were made of a few extra stores and IT investments, as well as goodwill in Wupti due to a highly competitive electronics market, where we expect a continued increase in pressure going forward and strengthened competition. Extraordinary items in 2017 consisted primarily of gains via the sale of Næstved StorCenter and charges to the stores taken over by Dagrofa as part of the Kiwi closure where stores were not opened as either a Netto or føtex food.