419 million francs Migros boosts profits after mega-renovation
Migros made a profit of 419 million francs last year. This was despite the spin-off of numerous specialist stores.
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- Migros has almost doubled its profit.
- Half of this is attributable to Migros Bank.
- As announced in January, the Migros Group's sales rose by 1.8 percent in 2024 to a record level of 32.5 billion Swiss francs.
Despite extraordinary costs due to the sale and closure of its specialist stores, the retailer Migros increased its profit significantly in 2024. According to a statement on Tuesday, this amounted to 419 million francs, more than twice as much as in the previous year.
Migros Bank accounted for more than half of the Group's profit. With a plus of 282 million francs, it achieved the second-best result in its history, as Migros announced on Tuesday.
The "orange giant" also increased its earning power in particular. Operating profit (EBIT) rose by a whopping 69 percent to 484 million francs. Actually, it would have been even better: extraordinary costs from the sale of the Migros specialty stores burdened the result with 440 million francs.
Profit from company sales not until 2025
While the sale of SportX, Melectronics, Bikeworld, Obi, Micasa and Hotelplan had a negative impact on the result last year due to extraordinary costs and write-downs, Migros expects a positive one-off effect from the sales in the current year.
The ongoing reorganization of the Migros Group is the biggest restructuring in the company's 100-year history.
All the disposals and closures announced a year ago have been initiated or already completed. The only exception is the cosmetics manufacturer Mibelle, for which no buyer has yet been presented. Tuesday's press release only states that the sales process has not yet been completed.
Lower sales expected
As already announced in January, the Migros Group's sales rose by 1.8% in 2024 to a record level of 32.5 billion Swiss francs. This was boosted by strong online retail, particularly the online department store Galaxus.
The retail business and the health division, which grew significantly following the acquisition of the Swiss business of the pharmacy chain Zur Rose, also recorded growth.
For the current year, Migros management expects sales to be around CHF 3 billion lower due to the disposals. It also anticipates lower sales in the supermarket business due to the announced low-price offensive. According to Migros, the operating result should be "solid again".
