BUSINESS

Jumbo reports 8 percent annual rise in profits

TAGS: Business

Jumbo, Greece’s biggest listed retailer, on Monday posted an 8 percent rise in net profit for the fiscal year to end-June, mainly due to robust growth in Bulgaria and Romania.

Net profit for the 12 months came in at 131 million euros, up from 121 million euros in the year-ago period. It will pay a total dividend of 0.36 euros a share.

Jumbo has fared well thanks to its low-cost products and foreign operations despite seven years of austerity in Greece in exchange for three international bailouts which have led to an almost 30 percent drop in retail sales.

The retailer operates 51 stores in Greece and another 22 stores in Cyprus, Bulgaria and Romania. Sales for the first quarter to September rose “approximately” 12 percent, the company said, thanks to double-digit percentage growth in Bulgaria and Romania.

It did not provide further details. Jumbo expects profit for the current fiscal year to June 2018 to remain unchanged, with sales rising by 6-9 percent.

Under an aggressive expansion strategy, the retailer plans to operate three new stores in Romania and another one in Greece by June, it said. [Reuters]

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