Billa overshoots 250m-euro mark

The Billa supermarket network last year posted turnover worth 250 million euros (over 900 million RON), up 66% from the previous year.

The company derived gross income worth over 11 million euros (40 million RON), according to the data published in the Official Gazette, ranking as one of the top companies in the Romanian trade sector.

Billa had a total of 18 stores in Bucharest and the rest of the country at the end of 2005 after the company opened another 5 at the end of last year, meaning that it is now the largest supermarket operator on the domestic market. This year Billa has opened another two stores, bringing the total to 20, with 100 stores as its long-term target. At the end of last year the network had 1,613 employees.

When contacted by Ziarul Financiar, Billa Romania officials made no comment by the time of going to press.

Each Billa store has an area ranging between 1,000 and 2,400 square metres and sells a range of approximately 10,000 products.

Billa, part of Germany”s Rewe trade group, was the first major international supermarket player to enter the Romanian market, in February 1999. Subsequently, the German group brought to Romania its cash&carry stores, Selgros, as well as its discount stores (XXL Mega Discount and Penny Market).

Selgros was the second player in Romanian trade sector in terms of turnover at end of last year. The company operating the Selgros cash&carry store network last year derived turnover worth 457 million euros and net income topping 21 million euros.

Rewe Romania, which operates the XXL Mega Discount and Penny Market discount stores, did not release its figures for last year.

Besides Rewe, other international players are present on the Romanian supermarket segment.

The Delhaize le Lion Belgian group in 2000 acquired the Mega Image network, which currently owns 17 stores in Bucharest and in the rest of the country. Mega Image had been set up in the mid ”90s by Greek investors.

Other domestically developed networks have been purchased lately, but by financial, not strategic investors.

Thus, in 2005, Poland”s Polish Enterprise Fund V investment fund paid 17 million euros to acquire the Artima supermarket network, developed by Romanian entrepreneur Florentin Banu, who had developed and sold the Joe wafers brand.

La Fourmi, a network of supermarkets developed in Bucharest by Lebanese investors was involved in a buyout deal in the second half of last year. An investment fund managed by the Global Finance Greek company purchased 80% in La Fourmi, with the value of the deal being put at several million euros.

Univers”all, the supermarket network owned by businessman Razvan Petrovici, plans to include an investment fund on the list of its shareholders. The company at present operates seven stores in Bucharest and the rest of the country.