Magasin Général Enters New Phase with Improved Sales
Magasin Général appears to be progressing towards a new phase in its long history. The retail giant has achieved a turnover (excluding taxes) of 274,172 MTND at the end of the last quarter of 2024, representing a 5.1% year-over-year improvement. This has enabled the company to reach sales of 1,041,656 MTND for the year, compared to 984,555 MTND in 2023.
The distributor's gross margin, calculated based on revenue excluding taxes, decreased by 52 basis points to 27.89%. The cost of goods sold increased by 6.5% in 2024, outpacing the growth in turnover. We believe that the sales growth is largely driven by price effects, as the growth rate is lower than the average inflation rate in the economy as a whole.
The year 2024 was marked by a decrease in financial expenses, which fell from 33,084 MTND in 2023 to 24,859 MTND the following year. Financial products stood at 12,241 MTND. Personnel expenses, on the other hand, increased significantly by 7.8% to 83,698 MTND. There was a net recruitment of 25 people in 2024, bringing the total average workforce to 3,398 employees. It is worth noting that there was a salary revaluation across the sector last year, with even a risk of strike in all major retail stores in the country.
With its expected entry into the bond market, approved by the latest shareholders' meeting, Magasin Général is set to gain additional resources to pursue its development. However, the context is not very favorable, as purchasing power is suffering. To succeed in this business, it is essential to know how to negotiate purchases.
