The financial landscape of 2024 has been quite favorable for Mercadona, with the company posting a significant increase in net profit and a consolidated expansion in the Iberian market. At the close of the year, Mercadona reported a net profit of 1.384 billion euros, representing a 37% jump from the 1.009 billion euros achieved in 2023. This substantial growth underscores the company’s robust performance and its ability to adapt to evolving market conditions.
Expansion and Sales Growth
Mercadona’s retail footprint has expanded considerably, with the company ending 2024 with 1,674 stores in Spain and 60 in Portugal. This follows a year marked by strategic openings and renovations, resulting in the launch of 42 new stores, the closure of 49, and the renovation of 29 establishments. In terms of sales, the company achieved a turnover of 38.835 billion euros (excluding VAT), marking a 9% increase from 2023. Sales in Spain reached 37.057 billion euros, while those in Portugal climbed to 1.778 billion euros, reflecting the growing importance of the Portuguese market in the company’s operations.
The driving force behind Mercadona’s success is its team of over 110,000 dedicated individuals. In 2024, the company created more than 6,000 new, high-quality jobs – 4,300 in Spain and 1,700 in Portugal – bringing its total workforce to 103,000 in Spain and 7,000 in Portugal. To recognize the hard work and commitment of its team, Mercadona increased salaries by 8.5%, significantly outpacing the inflation rates in both Spain and Portugal. Additionally, the company shared a variable bonus of 700 million euros, linked to its profits, with its employees. This generous gesture resulted in a worker with over four years of seniority receiving 6,000 euros in gross earnings on March 1st of this year, equivalent to three months’ worth of variable compensation.
Historic Rentability Levels
Mercadona achieved its best-ever rentability figures in 2024, with a net profit margin of 3.9% on net sales. This milestone is the result of sustained investment over time, totaling 1.045 billion euros over the past twelve months. This strategic investment has yielded significant improvements in management, productivity, and efficiency across the company. Consequently, Mercadona’s shared profit rose to 2.8 billion euros, with 700 million euros going to its employees and 716 million euros in taxes, including 506 million euros in corporate taxes, representing an effective tax rate of 25%.
These developments have contributed to a net profit of 1.384 billion euros, a 37% increase from 2023. Of this amount, 180 million euros stem from treasury management, with 1.109 billion euros (80%) being reinvested in the company and 275 million euros (20%) allocated to dividend payments. As the company looks to the future, it plans to invest over 1 billion euros and create more than 1,000 new jobs in 2025. Furthermore, Mercadona forecasts a 3.5% increase in sales, reaching 40.1 billion euros, and expects to maintain a profit level similar to that of the previous year.