In the first half of 2024, LabelVie successfully continued its multi-format and multi-channel expansion strategy, opening 11 new stores across Morocco. These included 3 Carrefour Market, 3 Carrefour Express, 4 Supeco stores, and 1 Atacadao in Taroudant, marking the retailer’s debut in this city.
Despite a challenging national context marked by inflationary pressure on household purchasing power and persistently high food prices, LabelVie demonstrated resilience. Thanks to its agile business model, the group managed to mitigate the impact of these challenges on its performance.
Strong financial performance
LabelVie’s revenue rose by 3.3% in the first half of 2024, reaching 7.7 billion dirhams (MDH). The group’s total sales increased by 2.2%, totaling 6.9 billion MDH, with comparable sales stabilizing at 6.4 billion MDH. This positive trend was mainly supported by the supermarket and hyper-discount (hypercash) segments, which saw respective sales increases of 3.8% and 4.7%. On a like-for-like basis, these segments experienced slight variations, with supermarket sales declining by 2.9% and hyper-discount sales growing by 3.4%. Meanwhile, the hypermarket segment saw a modest decline of 4.4%, reflecting consumers’ shift toward convenience stores.
In terms of profitability, LabelVie’s EBITDA grew by 5.1%, reaching 588 million dirhams, which improved the sales margin to 8.5%, up from 8.25% in the first half of 2023. The group achieved this by maintaining tight control over operating expenses and implementing effective commercial strategies that helped offset the reduced purchasing power of consumers.
The net result for the period saw a significant increase of 17%, rising to 267 million dirhams. This boost was largely driven by dividends received and an exceptional capital gain from the sale of 40% of LabelVie’s shares in OPCI Terramis.
Strategic investments and financial stability
LabelVie continued to invest in its expansion and transformation plans during the first half of 2024. Notably, the group sold a 40% stake in OPCI Terramis for 473 million dirhams, contributing to a net investment total of 579 million dirhams for the period.
Despite the acceleration in its development plans, LabelVie successfully maintained stable net debt, which remained at 3.9 billion dirhams by the end of June 2024.
Corporate social responsibility (CSR) initiatives
In 2024, LabelVie reinforced its commitment to corporate social responsibility (CSR) with the launch of a new action plan aligned with its development strategy. The group expanded its “LabelVie Quality Chain” initiative, which initially focused on red meat, to include fish, fruits and vegetables, and traditional products, ensuring high standards across all categories.
LabelVie also introduced the “Ma3a Al Haouz” program to support families affected by the recent earthquake. This initiative includes providing modular homes for 67 families in the village of Tagmour and rebuilding the Central Atlas School in Amizmiz, which will allow 575 children to resume their education in improved conditions.
Outlook and expansion plans
In June 2024, LabelVie held its Capital Market Day, where the group shared its long-term vision and growth strategy with investors, outlining its expansion and profitability goals through 2028. This event helped bolster confidence in LabelVie’s ambitious plans and reaffirmed its leading role in Morocco’s retail market.
Looking ahead to the second half of 2024, LabelVie plans to accelerate its store openings, with over 35 new outlets across various formats expected by year’s end. These openings will strengthen the group’s presence in cities such as Kalaat Sraghna and Taourirt. Since the beginning of the second half, 7 additional stores have already opened across the Kingdom.
