SOFIA (Bulgaria), April 12 (SeeNews) – Greek toy retailer Jumbo on Tuesday reported a 12% year-on-year drop in sales in Bulgaria in the first quarter of 2022, despite a 45% annual jump in revenue. business in March following the lifting of COVID-19 green certificate requirements for indoor activities in the country at the end of February.
The nine Jumbo stores in Bulgaria, including four in the capital Sofia, remained closed for about a third of the total number of trading days in March, the Greek retailer said in its forecast for 2022.
The company posted a 19.87% increase in revenue to 831.9 million euros ($904 million) last year, it said in its 2021 annual report also released on Tuesday. . In Bulgaria alone, net sales increased by 0.5% to 81 million euros compared to 2020, representing 9.74% of total turnover.
Pre-tax profit in Bulgaria was €25.5 million last year compared to €21.8 million in 2020. Jumbo’s total pre-tax profit was €263.1 million. euros in 2021.
Earlier this month, the Greek company carried out a €20 million capital reduction in its wholly-owned Bulgarian subsidiary, Jumbo EC. B. Ltd, returning the capital to the parent company. The unit, which employs 751 people, now has a total share capital of 32.62 million euros.
In light of current market conditions, Jumbo expects an annual increase of between 2% and 5% in total sales for the current year. The company’s pre-tax profit is expected to be between 210 and 240 million euros, with a projected net profit between 175 and 195 million euros.
“Despite the exceptional results of 2021 and the rate of growth in revenue in the first quarter of 2022, the challenges and uncertainty for the new year remain. There is no clear indication of improvement on the front of the supply chain while the cost of freight remains at prohibitive levels,” Jumbo said in a separate statement.
With the group achieving 28% of its sales during the Christmas period, potential further restrictions due to the resurgence of waves of COVID-19 during the winter months, particularly in a country with low vaccination rates such as Bulgaria, could negatively affect its results, the company noted.
Jumbo currently operates 82 stores, including 53 in Greece, 5 in Cyprus and 15 in Romania. A new store is expected to open in Romania by the end of 2022.
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