- Migros suffered a slump in profits in 2023.
- The net profit fell to 175 million francs (previous year: 459 million), as Migros announced.
- The retail group announced in a communiqué that operating profit (EBIT) fell from 628 million in the previous year to 286 million francs.
Value adjustments amounting to around half a billion francs would have had a significant impact on the result. The reason for this is logistics properties, IT projects and various other assets that had a lower balance sheet value due to changed market conditions.
Legend:
Migros announces a slump in profits.
KEYSTONE / Melanie Duchene
This problem was already explained by Migros in February. A spokesman said at the time that the indirect effects of the Signa bankruptcy amounted to around 15 million. In addition, rising costs for raw materials, energy and packaging weighed on the company’s results.
However, Migros achieved good operating results, primarily thanks to the performance of Migros Bank and the Hotelplan Group. Migros Bank recorded a profit increase of over 30 percent. Despite heavy losses during the corona pandemic, the travel subsidiary Hotelplan Group is still on an upward trend and achieved its highest value in a decade and a half with an EBIT of 27 million francs. This corresponds to a further increase of 2.5 percent compared to the previous year.
Sale of Hotelplan and Mibelle
Retail giant Migros plans to sell several subsidiaries, including Hotelplan Group, Mibelle, Melectronics and SportX, to improve its profitability. This step is part of a reorientation of Migros in order to adapt its specialist store formats to changing customer needs. Although Hotelplan is already successful, the company believes that it has even greater development potential under new management and is therefore actively looking for a buyer.
Legend:
Migros is planning to sell several subsidiaries.
KEYSTONE/Michael Buholzer
The Migros industry increased its sales by 3.9 percent to 6 billion francs, mainly due to inflation-related price increases. Foreign business, particularly at Mibelle, which generates 70% of its sales abroad, is affected by this growth. In order to improve development opportunities, Migros is also planning to find a new owner for Mibelle.
1500 jobs gone
The Swiss retail group Migros wants to concentrate on the core areas of food, non-food, health and Migros Bank. According to previous information, this would lead to a possible reduction of up to 1,500 full-time positions. However, there are currently around 1,300 open positions in the company.
The competition Coop
Despite this restructuring, Migros recorded record-breaking sales results: sales rose by 5.9% to 31.9 billion Swiss francs. This means that Migros has moved closer to its competitor Coop, which only recorded an increase in sales of 1.4%.
However, Coop achieved overall higher sales of 34.7 billion francs. Nevertheless, Coop has improved its profitability: operating profit (EBIT) rose by 2.5% to 864 million francs. That is around 2 percent more than in 2022.