AB Vassilopoulos’ three-year transformation plan focuses on the franchise network and the fast delivery segment, which also includes a small acquisition.
As the Brand President of AB Vassilopoulos Nikos Lavidas stated “2023 was a year of transition during which we designed the three-year strategic plan. The company proceeded to restructure its network and implement a new commercial price support policy.”
In terms of performance in 2023, revenues remained almost stable at 1.97 billion euros from 1.98 billion in 2022 and 1.96 billion in 2021. It is noted that in the period from 2017 to 2023, on average, the chain moves with a negative rate of 2.48%. “The turnover remains stable and this does not satisfy anyone,” Lavidas said, adding that the gross profit margin index, which last year stood at 25.9%, remains just as stable.
Adjusted Operating Profits (excluding impairments and extraordinary losses) amounted to 29 million and adjusted EBITDA totaled132 million euros, at the same levels as in 2022. Net results before taxes showed a loss of 21 million euros. The positive performance of the company is mainly reflected in the improvement of operating cash flows, which reached 120 million euros, increased by 180% compared to 2022.
For the two years 2024-2025, the planning focuses on the development of franchise points, but also on the electronic channel and especially on the fast delivery service. The goal for the electronic channel is to grow its participation in the total turnover to 5% (i.e. 110 million euros) in 2028 from 3% (70 million euros). For the franchise field, the goal is for the number of stores to rise to 300 and this will be achieved through the transfer of 48 existing points to franchises, as well as the creation of 50 more new ones.
Moreover, an agreement for the acquisition of a small chain, whose network will also be included in the franchise model, is underway. It is noted that in 2023 the AB network had 585 stores, while investments amounted to 56.5 million euros. For this year, the investment plan remains at the level of 60 million euros.
Regarding the wholesale activity, the head of the group put an end to the possibility of selling ENA Cash & Carry – which has a network of 14 points -, stating that “at the moment wholesale brings 6% of our turnover. There were discussions, but we decided to maintain the activity and develop it.”
