Leroy Merlin in Spain finished 2022 with a net profit of 135 million euros. The market plans to invest 415 million euros over the next three years, a figure that marks a 25% increase and stands as the group’s highest annual profit on record.
“2022 was a successful year for the company. In Europe, Spain delivered the strongest turnover growth across all Leroy Merlin business units,” stated Alain Ryckeboer, the group’s CEO for Spain.
The multinational posted sales of 3,328 million euros in 2022, up 14.4% from the previous year, and established itself as the group’s fastest-growing market in Europe.
The gross operating result (EBITDA) rose 10.7% to 216 million euros, while the group’s net operating income (EBIT) reached 177.5 million euros in 2022. Including distance sales, growth was 27.1% higher, totaling 266.9 million euros, with online sales contributing 207 million euros and a 44.4% increase driven by digital channels.
During 2022 the company invested a total of 88 million euros in Spain. Of this, 32 million went to store improvements, 48 million supported technology and logistics, and eight million funded customer service improvements. Alberto Bustío, the chief financial officer, noted that 500 million euros had been invested in Spain over the last five years, and the company would continue investing in the country in the years ahead.
By the end of 2022 the operation had closed 133 physical stores and redirected 13 million euros to convert Alcobendas and Plasencia stores, as well as Sant Pere de Ribes, and opened new areas in Bilbondo, Nigrán and Gijón, completing the AKI store conversions.
Spain remains a cornerstone for Leroy Merlin. The company works with 2,126 suppliers, of which 1,583 are Spanish, from whom purchases totaled 1,626 million euros last year. Bustío emphasized that 72% of purchases were made in Spain, underscoring the company’s significant role in strengthening the local industrial fabric.
Leroy Merlin contributed 441 million euros to public finances in 2022, including 37.4 million euros in corporate tax, 30.4 million euros in other taxes, 214 million euros in VAT, 123.4 million euros in Social Security contributions, and 35.7% paid as personal income tax.
On the worker front, the company distributed 54.3 million euros to its employees, representing about 30% of 2022 EBIT, distributed through various forms of participation in company results.
More than 400 million in investments
The Spain managing director announced that the group will invest 415 million euros, with half allocated over the next three years to technology and logistics, and the remaining half to store expansion, new formats, and updates across the network.
Looking ahead to 2023, Ryckeboer indicated a continued emphasis on strengthening online sales, expanding the web presence and marketplace, and pursuing growth in the professional market with substantial upside potential, along with turnkey project sales. Plans also include opening more stores and advancing exclusive store concepts, plus accelerating energy renewal initiatives.
The company will continue testing new store formats in Spain, including the urban store concept in Madrid. The idea is to evaluate the model and determine future deployment, with a view to bringing the retailer closer to city-center customers.
The expansion plan includes new stores dedicated to bathrooms and kitchens in Valencia Salvatierra, followed by sites in Lorca, Linares and Fuengirola, with additional openings anticipated in other regional hubs.
Maintaining price discipline
For 2023, the finance director voiced caution about the broader economic environment while staying optimistic about gains. He noted that while inflation and other economic pressures persist, the company expects a solid year with opportunities to grow. The outlook suggests a sustainable pace of growth between roughly 4% and 6% annually, aligned with market conditions.
Against a backdrop of inflation and rising costs, Bustío emphasized close collaboration with suppliers. He highlighted a price-stability policy that aims to keep pricing steady over time, resisting frequent changes in response to short-term economic shifts.