Profi has recently published its audited financial results for 2023, showcasing a notable 11% increase in turnover compared to the previous year, reaching a value of 12.9 billion RON. This comes after a substantial 22% growth in 2022 compared to 2021.

Consistent Growth Amid Large Base

Despite the already high base from 2022, the 11% increase is significant, representing a rise of 1.3 billion RON. This growth is consistent with a compound annual growth rate (CAGR) of 16% over the past five years.

Net Results Influenced by Accounting Standards and Financial Factors

"As mentioned every year, our net result is not highly significant due to factors specific to a company that has undergone successive waves of mergers and acquisitions (M&A), with a substantial goodwill that, according to local accounting standards, is amortized and artificially negatively impacts the net result by hundreds of millions of RON," stated Andrei Bica, Profi's Chief Financial Officer.

"According to international IFRS standards, however, this goodwill is not amortized and thus does not negatively impact the net result," Bica explained. He also highlighted that their results are affected by their financing methods and the significant increase in the ROBOR rate over the past two years, which has doubled or tripled compared to 2021, leading to substantial interest expenses. Despite these factors, Bica emphasized that Profi remains a healthy company, paying profit taxes.

Expansion and Financial Stability

In 2023, Profi opened and remodeled 160 stores, including 87 new stores, the highest number in modern Romanian retail. The company's cash position remains extremely solid and stable, even after repaying hundreds of millions of RON in bank debt in 2023.

Key Business Evaluation Metric: EBITDA

For business evaluation, Profi focuses on IFRS EBITDA, which increased by 17% in 2023, reaching 690 million RON. This growth underscores Profi's capability to expand its business consistently year after year.

Largest Private Employer in Romania

With nearly 28,000 employees across more than 1,713 company-owned and partner stores in almost 850 urban and rural localities, Profi is Romania's largest private employer. The retail network includes four store formats: PROFI SUPER, PROFI CITY, PROFI GO, and PROFI LOCO, offering a range of 5,000 products appreciated by over 1.2 million daily customers. Impressively, more than 94% of these products are sourced from Romanian suppliers.

(Photo: Profi)