It is reported that the Otto Group is still facing losses amid the current consumption downturn caused by high inflation, and its CEO Birken said in the business data for the 2022/23 financial year that it will take two years to return to the original level of profitability. The company has chosen to continue investing, with multimillion-euro investments planned in 2023/24 alone, for example in the expansion of delivery services and group-owned logistics. The company reported a loss of 413 million euros in its income statement, compared with a profit of about 842 million euros in the first year of the pandemic.
Sales in 2022/23 were €16.2 billion, unchanged from the previous year (€16.1 billion). While domestic sales in Germany fell 9.2 percent to 9 billion euros, overseas sales rose 9.6 percent to 7.2 billion euros. Its CEO said that while the figures show they are not immune from market trends, the impact is directly reflected in the company’s business amid the war in Ukraine, the energy crisis, inflation and the related consumer downturn. In addition, the Otto Group management committee would not comment on the outlook for 2023/24, but expects sales and pre-tax profit to stabilise at low levels.
Post time: May-26-2023