Makro CR's net profit plummets to CZK 25.6m in 2019/2020

Makro Cash & Carry CR wholesaler saw its net profit fall by CZK 268m to CZK 25.6m in the financial year ending on Sept 30, 2020, with sales going down by 4.4 percent to CZK 27.3bn, the firm said in the annual report.

The forced closure of gastronomic facilities is to blame for the profit fall, said Makro CR's corporate communication head Romana Nydrle.

Sale to customers in the gastronomic sector made up a major portion of the company's turnover last February, she said.

Makro operates 13 wholesale centres in Czechia and has its own distribution centre.

Despite the negative development, the company invested in support activities for customers in the HoReCa (hotels, restaurants and cafes) segment and in digitisation, said Nydrle.

Makro also focused on independent retailers who form the second pillar of wholesale, she said.

"Our turnover decreased and costs increased but we made no redundancies. On the contrary, we invested in front line workers' wages," said Nydrle.

Makro employed 3,288 people on average in 2019/2020. Personnel costs increased by CZK 127.2m yr/yr to some CZK 2bn.

Wages of operating staff rose by an average 3.2 percent as of July.

Source: CTK