Spar Hungary reports higher loss for 2024

In 2024, Spar Hungary achieved net sales of HUF 924.4 billion, which marks a 4.7% increase on the previous year's figure of HUF 882.7 billion. Other revenues also grew, rising 14.8% yr/yr to HUF 17.1 billion from HUF 14.9 billion.

However, expenditure has increased even further. The cost of goods sold (COGS) rose by 6%, increasing to HUF 579.9 billion from HUF 547.3 billion.

Consequently, SPAR's margin decreased to 37.3% from 38%.

To calculate this, simply subtract the cost of goods sold from the net sales revenue, then divide this figure by the sales revenue. One disadvantage of this method is that services contracted by retailers from suppliers, such as packaging and logistics, can make comparisons difficult, but it still provides a good indication of how each chain operates.

The most significant operating costs were HUF 12.1 billion on marketing, HUF 7.5 billion on logistics, and HUF 94.8 billion on other services.

Rising wages

According to the earnings report, personnel expenses increased by 13.1% to HUF 106.7 billion, while the company employed 12,729 people in 2024. This figure does not include franchise partner employees.

Losses almost reach HUF 25 bn

Operating losses grew by 83.3% yr/yr to HUF 22 billion in 2024 from HUF 12 billion in 2023.

Spar hungary's after-tax profit showed huf -24.8 billion, a 35.5% deterioration from huf -18.3 bn incurred in 2023.

Expansion goes on despite weak performance

In 2024, two new Spar supermarkets opened – one in Békéscsaba and one in Hajdúböszörmény – and nine hypermarket sales areas were renovated, including those in Budapest, Érd, Tata, Miskolc, Tatabánya, Kaposvár and Zalaegerszeg. A further seven supermarkets in Budapest, Celldömölk, Székesfehérvár, Sopron, Tatabánya, Miskolc and Zalaegerszeg were also modernised. By the end of the year, the total network consisted of 347 stores, although 23 units were closed.

Cover photo: Peter Dazeley/Getty Images