Bargain chain Action now worth 13 billion: ‘Continues to exceed expectations’

This is evident from the half-year figures published today from the owner of Action, the British investor 3i.

Value increase

The owner, who became a major shareholder in Action ten years ago, owns a 52.7 percent stake in the Dutch bargain chain. The investor raised the valuation of that stake from £4.6 billion at the end of March to £6.1 billion at the end of September.

This means that 3i now values ​​the entire company at 11.6 billion pounds, or 13.5 billion euros. This makes Action by far the most important participation in the investor’s portfolio, accounting for 52 percent of the total value.

The retail giant, which now has 1,931 branches in eight countries, is now worth more than, for example, telecom group KPN, insurer Aegon or employment agency Randstad.

Exceeded expectations

“Action continues to exceed expectations,” 3i wrote today in its financial report for the past six months.

The sales of the bargain chain amounted to 4.8 billion euros in the first nine months of this year. That is an increase of 25 percent compared to last year. Part of the growth is due to the opening of new stores. Excluding the new stores, sales increased by 12.9 percent.

Gross profit (before interest, taxes and amortization) for the twelve months to October 2021 increased to EUR 765 million, compared to EUR 579 million in the comparable period last year.

Little affected by corona

According to 3i, Action’s growth accelerated thanks to the relaxation of the corona measures and the reopening of the stores. “Action has not been immune to disruptions in global supply chains and increased costs for products, labor and transport,” the investor acknowledges.

“But as a large company selling a wide variety of items, with a range of suppliers and significant purchasing power, Action continued to be able to purchase supplies during the pandemic, putting it in a better position than many other retailers to withstand the pressure and growing sales and profits.”

New stores and top woman

After the number of store openings decreased somewhat last year as a result of the corona measures, Action has again given full throttle this year. The retail giant has opened 181 new stores so far, and is on track to open 270 new stores by the end of the year.

The pilot stores in Italy and the Czech Republic are performing well, so that more stores will be opened there too. As announced earlier this month, current CEO Sander van der Laan will be succeeded by Hajir Hajji early next year.

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