The Mexican supermarket chain Soriana (SORIANAB) reported a growth in net interannual profit of 0.6% in the fourth quarter of 2015 due to the higher taxes that overshadowed solid sales growth exceeding 7%.
According to the report of the second largest chain of stores than Mexico, their net profit was about 76 million dollars, while revenue grew a 7.3%. This percentage increase speaks volumes to the good decisions taken by the national chain.
Soriana said that its sales to equal stores, of those with more than one year in operation, grew by 6.2% in the quarter because of better consumption.
Additionally, a better negotiation with suppliers to offer lower prices and their savings plan helped the operating flow (EBITDA) increase by 17.2%.
Great Decisiones Taken by Soriana
The company, which recently completed the purchase of rival Comerci, added that they reported for more taxes than in 2014, when it benefited from a tax reform that allowed it to defer the payment of levies. This was a smart move by Soriana. Alongside “taking out” the competition, the company was able to save money.
The company benefited by a better performance in consumption, as well as through how efficient its transformation plan was and the implementation of new systems, operational and business processes.
During the year 2015, revenues reached 109 thousand 380 million pesos, which resulted in an increase of 7.4%.
“Such expansion is partly a product of the opening of 11 units in the course of the year and in a greater proportion of the growth of 5.6% in same sales shops during 2015, given the company’s efforts to present offers and promotions attractive to customers, as well as the efficiencies that have been in the four formats of self-service”, the company informed.