Monoprix Achieves 6.7% Increase in Turnover, Despite Challenging Market Conditions
The New Tunis City House Company (Monoprix) has reported a turnover of 176,242 MTND, excluding taxes, representing a 6.7% year-over-year increase. Excluding exceptional sales related to the national olive oil distribution operation, the growth rate rises to 10.1%. We believe that this improvement is due to a dual positive effect on prices and volume.
Geographic Expansion and Inflationary Pressures
The retail chain has strengthened its geographic footprint with the opening of its 86th point of sale in the Carthage Gardens in December 2024. Furthermore, ongoing inflation has pushed prices upward, although the large-scale distribution sector has made efforts to control prices.
Improved Efficiency and Cost Management
The ratio of payroll to turnover has decreased from 10.1% as of March 2024 to 9.5% a year later. This trend reflects the growth in turnover, coupled with a slight decrease in staff numbers (3,131 agents). Efficiency remains the guiding principle for the company.
Challenging Market Conditions and Strategic Orientation
The company has not yet announced its 2024 results. As a reminder, the first half of the year was marked by a loss of 3,242 MTND. Monoprix, like the entire sector, faces a difficult context. Competition is fierce, both formal and informal, and Tunisians' purchasing power is eroded by an ongoing inflationary cycle. Strategically, the company will need to orient itself towards a model that requires lower operating costs, which is no easy feat.
Stock Market Performance
The company's stock has shown a return of 11.2% since the beginning of the year. While the published figures are positive, they need to be confirmed by improved profitability throughout the exercise.
