Makro reported sales of 1,461 million euros in fiscal year 2021/2022, with Horeca leading the way. This is 33% more than in the same period of the previous year. Product volume sales also grew by 21% and sales from Horeca customers increased by 41%.
This growth is the result of the initiatives carried out by Makro and oriented to the growth of its Horeca customers, within the framework of its strategic growth and transformation plan. Total turnover, including the provision of services, amounted to 1,467.6 million euros.
Thus, in Makro’s second financial report under the leadership of David Martínez Fontano and after the first year of implementing its strategic plan, Makro has significantly boosted its growth and is moving towards the goal of doubling its size in Spain.
“We have grown in terms of sales, with the highest figures in the history of the company in Spain, but also in terms of product volume, with unit sales 21% higher than in the previous financial year, exceeding expectations. This is the result of our commitment to developing a business model focused 100% on our on-trade customers, with which we seek to drive their own growth,” said David Martínez Fontano, CEO of Makro in Spain.
The company has invested heavily in both strengthening our multi-channel model in shops and in the retail sector.
Makro obtained net results in the fiscal year of 9.2 million euros, mainly due to the investment in prices in the summer to mitigate the impact of inflation on its hospitality customers, in line with the implementation of its transformation and growth strategy, which is also intensive in investments, such as the opening of its new multi-temperature logistics platform in Barcelona, the hiring of more than 55 sales managers, the creation of 145 new delivery routes and the launch of digital solutions.
Makro remains committed to growing its value proposition and doubling its turnover in the coming years. In this regard, Makro’s CEO in Spain says: “We are making a great effort to invest in strengthening our multichannel model in shops, supply chain and digital media, as well as in prices, contributing to the economic sustainability of our hospitality customers in the current inflationary context”.
Growth of almost 90% in the distribution service and online sales to the hotel and catering industry
Makro’s multi-channel business model is made up of its distribution and online sales service for the hotel and catering industry and its 37 cash&carry centres. In addition, in the digital channel Makro offers its customers a marketplace with more than 100,000 non-food products for Horeca and the Dish digital solutions for the hotel and catering industry.
Thus, by channels, sales through the Online Distribution and Sales Service for the Horeca sector have grown by 88.61% compared to the previous year, representing 24% of total turnover.
The Online Distribution and Sales Service for the Hospitality Industry is one of the main levers in Makro’s growth objective for the coming years and in its goal of boosting the growth of its Horeca customers. For this reason, last year, the company began operations at its first regional multi-temperature platform in Catalonia, in El Prat. With a surface area of almost 15,000 square metres, the opening of its third platform in Spain and the first in Catalonia was one of the company’s major milestones for the promotion of its Horeca Distribution Service.
With regard to the cash & carry channel, made up of 37 centres, Makro’s sales grew by 22.8% compared to the previous year, representing 76% of total turnover. This result is the result of the company’s investment in the development of commercial strategies that seek to offer the hotel and catering customer better purchasing conditions and stability in assortment and prices.
Growth of the sales force
As the company stated in the presentation of its strategic plan, people will be the basis for future growth. For this reason, last year Makro set out to double its sales force in the coming years and, in the previous year, the number of sales managers increased by more than 15% (more than 55 more sales managers in the Sales Force), bringing the team to 426 people at the end of the financial year. Sales managers are a key figure for Makro, as their personalised advice to the hospitality professional brings essential value to the customer.
With regard to own brands, sales grew by 48% in the last financial year and now represent more than 30% of the company’s total turnover. Makro continues to focus on the development of an assortment aimed at providing solutions to the needs of the catering industry under its brands Makro Chef/METRO Chef, Makro Professional/METRO Professional, Makro Premium/METRO Premium, Rioba and Aro.
Investment of 8.7 million euros to improve the offer to the hotel and catering trade
The initiatives and investments carried out by Makro as part of its strategic growth and transformation plan are aimed at offering the best service to its hotel and catering customers and boosting their growth. For this reason, in the last financial year, Makro invested 8.7 million euros in various areas of its business model with the aim of reinforcing its 100% wholesale service. These included investments to improve the infrastructure of the centres and efficiency in the Delivery channel and in projects to promote innovation in the on-trade, which culminated in the inauguration of the Planta Thinko innovation space in Madrid.