More store chain narrows net loss with sales boost

Aditya Birla Retail, owner of the ‘More’ supermarket chain, has reported a tremendous increase in sales for the past year as against the previous year. Sales from 2016 to 2017 was Rs 4,194 crore making their net profit growth stand at 148.75 as against 51.89 the year before. This sales increase, made possible through their ‘More’ brand, has ensured a reduced overall net loss but it still stands at a total of Rs. 644 crore.

A reason for the business’ high net loss is its high finance and borrowing costs. Aditya Birla Retail accumulated a large debt in 2007 when they acquired Fabmall and Trinethra and entered into the retail market and did so again in 2015 with their acquisition of Jubilant’s Total Super Store. The business’ current debt stands at Rs 6, 573 crore. It was reported in filings at the Registrar of Companies that they spent Rs. 471 crore on finance during the last year.

Aditya Birla Retail is part of the Aditya Birla Group and their ‘More’ supermarket chain currently has 493 branded supermarkets and 20 hypermarkets across India. The chain sells apparel, cosmetics, lifestyle products and food items, among others.