The Convenience Shop (Holding) plc registered a profit before tax of €2.6 million for the year ended December 31, 2022, up 63 per cent on the previous year, while total revenue, including both owned and franchise outlets, increased by 18 per cent to €74.5 million when compared to €63.3 million reported last year.
Commenting on these results, the chief executive officer of The Convenience Shop (Holding) plc, Martin Agius, said that 2022 was a momentous year for the Convenience Shop Group.
“Guided by our vision to be Malta’s retailer of choice in the convenience sector by providing a modern, reliable and customer-centric experience to our shoppers, our strategic priorities focused on increasing retail space growth and the average transaction value (ATV), while simultaneously widening our category development and keeping rigorous control on cost and cash management. This aligns perfectly with our mission to make daily life easier for our customers through proximity, availability and our caring team,” he said.
“Our strong performance for the year is also evidenced by an 11 per cent increase in customer footfall, the takeover of two outlets and the opening of six new franchise outlets in 2022, highlighting the success of our franchise concept.”
Our strong performance is also evidenced by an 11% increase in customer footfall, the takeover of two outlets and the opening of six new franchise outlets in 2022- The Convenience Shop (Holding) CEO Martin Agius
The expansion of the franchise network momentum, together with higher customer reachability also contributed significantly to the year’s strong financial performance, Agius added.
In 2022, the group generated a total net cash from operations of €3.5 million − €788,000 higher than prior year. Following a year of heavy investment in 2021, the group has again invested €810,000 in the purchase of furniture, plant and equipment, as well as intangible assets related to the acquisition of new outlets.
Financing related cash outflows were mainly related to payments of lease liabilities of €1.2 million, dividends paid amounting to €625,000, interest payments of €441,000 and bank loan repayments of €141,000.
The group continues to maintain its strong balance sheet with total assets amounting to €33.6 million. Current liquid assets remained at €7.7 million in line with last year, mainly comprising of stock for resale amounting to €3.2 million, trade and other receivables of €3.4 million and cash and cash equivalents of €1.2 million. Current liabilities decreased by seven per cent from €11.3 million to €10.6 million, primarily due to the full settlement of tax balance from the COVID era and tight control on supplier credit terms. This helped improve the group’s liquidity or current ratio by 4.6 percentage points over last year.
Ben Muscat, chairperson of The Convenience Shop (Holding) plc, concluded that 2022 was a successful year, despite the challenges associated with the post-COVID recovery period exacerbated by international political turmoil, inflationary pressures and supply chain disruptions.
“Our focused strategy enabled us to weather the prevailing inflationary environment resulting mainly from global supply chain disruptions following the COVID pandemic and the ongoing Russia-Ukraine dispute.
“In spite of the effect of the foregoing, we remain highly competitive while retaining focus on business growth, customer-centricity, and corporate governance. Having now weathered ‘the storm’, we believe that we are now well-positioned to capitalise on the opportunities that lie ahead.”
To access the full 2022 annual report and consolidated financial statements, visit this link.