Lekkerland Group looks back on a successful year 2016
- Increase in sales, gross profit and result from operations before financial result
- Important contracts extended and new contracts concluded
- New solutions for shops launched
- Stronger focus on the needs of customers and end consumers
The Lekkerland Group is looking back on a varied and successful year 2016. The measures introduced in the previous years within the framework of the Lekkerland corporate strategy are showing positive effects: The Lekkerland Group succeeded in increasing sales by 4.2% to 13 billion euros in a market environment that continues to be very dynamic and competitive. The gross margin grew by 24.7 million euros to 620.5 million euros. As a result of business expansions and additional optimisations of the cost structure, the result from operations before financial result improved by 28% (18.9 million euros) to 85.4 million euros. “Overall, Lekkerland is in a good position, as is demonstrated by the results of the past business year,” summarised Patrick Steppe, Chairman of the Management Board (CEO) of the Lekkerland Group.
Sales growth at all reporting levels
In the business year 2016, all the segments improved their performance: Sales in the Germany segment rose by 0.7% compared with the previous year to 7,736.9 million euros. In the Rest of Western Europe segment, sales posted an even more marked increase of 9.7% to 5,265.7 million euros, particularly as a result of an acquisition in Switzerland.
All three product ranges of Lekkerland recorded a positive development in sales. The tobacco goods product range went up by 4.7% to 10,405.6 million euros. Sales in the higher-margin range food / non-food increased by 1.9% to 2,480.3 million euros, and the Lekkerland Group succeeded in expanding sales by 5.0% to 116.7 million euros in commissions on electronic value (e-va) / miscellaneous.
When allocated to sales channels, the following results were generated: Sales for the system customers sales channel underwent the strongest growth by 7.6% to 4,423.2 million euros. Meanwhile, the regional customers sales channel increased by 4.4 % to 2,088.3 million euros and the filling stations sales channel rose by 1.9 % to 6,491.1 million euros.
Solutions for shops expanded
In 2016, Lekkerland made good progress towards its target aspiration to become the 360 degree solution provider for its customers. Lekkerland’s interpretation of 360 degrees entails for example providing comprehensive consulting, individual logistics solutions, and tailor-made shop con-cepts. “An important milestone here was the opening of the first two test stores for the ‘Frischwerk’ shop concept in Germany,” explained Patrick Steppe. Food service concepts continued to be rolled out or set up in other countries where the Group is operating.
Customers value the solution competence of Lekkerland
The activities of Lekkerland are well received, as is demonstrated by the many years of longstanding customer relationships. In 2016, Lekkerland was able to extend a large number of contracts and acquire new customers. The extension of the framework contract with oil major Shell at an international level was particularly important. Our offering also impressed other oil companies such as Eni in Austria and operators of Quick Service Restaurants in Spain, alongside smaller mid-sized businesses, kiosks and convenience stores.
Internal development continued
Lekkerland continued to drive forward the internal transformation in 2016. Following intensive preparations, Switzerland was the first operating national company to successfully implement “Become One” in the beginning of 2017. This is a system platform designed to provide uniform business and IT processes across the Group. Other national companies will follow. “Our goal is to support our customers as best as possible and enable them to have the perfect customer experience,” commented Patrick Steppe. “We tailor our internal processes to achieving this objective.”
Taking over the customer base of Contadis was another important strategic milestone for Lekkerland Switzerland. In Germany, the Netherlands, Belgium and Austria, the programmes to promote growth and improve profitability were driven forward consistently – and successfully.
In the area of logistics, Lekkerland took up an optimum strategic position for the future by opening the fifth full-range logistics centre in Mannheim, Germany, and expanding the deep-frozen area in Quer, Spain.
Corporate strategy will be developed further in the course of 2017
In 2016, the Management Board confirmed the general strategic direction of the company. “However, due to a changing marketplace we will define new focuses: The focus on the customer – we will concentrate on this principle. We will also target with increasing intensity the needs of consumers,” explained Patrick Steppe. Therefore, work is currently proceeding on the further development of the corporate strategy.
“Retail Enablement” will be the focus here. In future, Lekkerland wants to offer more solutions that allow customers to stay ahead of the competition. The aim is to make shops even more appealing for consumers. “This means that we will continue focusing on solutions which enable shop operators to achieve profitable growth,” said Patrick Steppe. Another future focus area will be digitalisation. In addition, in the business year 2017, the customer-centric internal transformation of the company and the improvement in our business processes and structures will play an important role.
Cautiously optimistic forecast
The year 2017 will be significantly defined by various influences exerting an overall impact: These include the trend towards a shrinking market volume for tobacco goods in the core markets and the reduction of business relations with one major customer in Germany. In contrast to this, positive impacts are generated by growth initiatives and transformation programmes. Against this background, Lekkerland expects revenues and a result from operations before financial result at the level of the previous year.
Profile of the Lekkerland Group
Lekkerland AG & Co. KG is the multinational partner for all retail formats which enable people to participate conveniently in on-the-go consumption. This includes filling station shops, kiosks, convenience stores, fast-food chains, tobacco shops, food retailers, beverage markets, department stores, bakeries and canteens. Customers with about 90,000 sales outlets in six European countries put their trust in the broad product range, flexible logistics and tailor-made services of Lekkerland. Lekkerland supplies tobacco goods, food-to-go, non-food products, drinks, electronic value and much more. Sales amounted to 13 billion euros in the business year 2016.
Press conference - Board of Management Lekkerland AG & Co. KG
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Press conference - Patrick Steppe CEO Lekkerland AG & Co. KG
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Press conference - Edgar Lange, CFO Lekkerland AG & Co. KG
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Press conference - Kay Schiebur, CSCO Lekkerland AG & Co. KG
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Test shop Frischwerk Aalen
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Test shop Frischwerk Aalen 2
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Test shop Frischwerk Hamburg
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Lekkerland Customer Service
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Lekkerland Fresh and Frozen
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