Strong financial performance in REITAN

Total turnover was NOK 105.6 billion and operating profits were NOK 5.5 billion. Forty-five percent of the company’s pre-tax profit of 5.2 billion is related to capital management and real estate.

I am grateful for the great efforts our employees have made in a challenging year. There are many heroes in our shops and administration, and they all deserve applause for their good work and patience.

Odd Reitan

The results are characterised by shifts in consumption patterns, domestic holidays and people spending more time at home. The pandemic year resulted in increased activity in the grocery segment, while convenience stores in transport hub locations experienced a full stop in all seven countries REITAN (formerly Reitangruppen) operates in.

– The grocery industry has delivered record results in a difficult year we would all rather be without. We are not cheering, but rather contemplating what we have experienced and learned, Odd Reitan says.

Ever since the company’s inception in 1948, we have developed a corporate culture where the customer is our ultimate boss, and run our business with rigorous financial discipline regarding debt. We have the best franchisees in the Nordic and Baltic regions, and ambitious owners with exciting plans in the coming years.

Kristin Genton

–The convenience business area has been severely hit, since our outlets are in the best locations for people on the move, i.e. metros, train stations, airports and city centres. Our top priority has been to safeguard our customers and employees with good infection control measures, and to maintain operations and critical supply of food and fuels, says REITAN CFO Kristin Genton.

REITAN is a multinational company with activities in retailing, convenience, food industry, distribution, logistics, energy, fuels, hotel, property and financial investments/capital management in Norway, Sweden, Denmark, Finland, Latvia, Lithuania and Estonia. REITAN’s annual results demonstrate a strong performance in retailing, property and capital management. As much as NOK 2.3 billion of the company’s pre-tax profit is related to the company’s capital management and real estate activities.

– Good work usually provides for good results. This is particularly noticeable in the capital management business area REITAN KAPITAL and in our real estate business area. REITAN EIENDOM is reaping healthy profits after years of long-term planning and sound investments, says Odd Reitan.

REITAN EIENDOM is building real estate portfolios in the centres of Trondheim, Bergen and Oslo. The company also develops properties with a primary focus on urban development, logistics and manufacturing.

–REITAN EIENDOM delivered very strong results in 2020. With an increasing portfolio providing rental income and healthy projects managed by a skilled and efficient team and good partnerships, we have an excellent platform for further development within real estate, says Kristin Genton.

REITAN’s equity amounts to NOK 36 billion, and the company’s debt-to-equity ratio is low. Within retail, hotel and real estate, we invested NOK 4.8 billion in renewals to improve customer experiences, streamline operations and ensure sustainable solutions.

– We went into the pandemic with a robust financial position and considerable latitude. Despite the uncertainty during the spring of 2020, we decided to maintain many of our investments, Kristin Genton says.

In 2020, REITAN (formerly Reitangruppen) was organised in five independent business areas. Effective from 1 January 2021, REITAN is organised in three business areas: REITAN HANDEL, REITAN EIENDOM and REITAN KAPITAL. In December, we presented the news that we will renovate the venerable “Postgården” building in Trondheim, which is located next to the Britannia Hotel, to house the art museum “Posten Moderne”, and, on the neighbouring street, establish the Nye Hjorten theatre in Trondheim.

	IAS 17	IAS 17	IFRS 16	IFRS 16
	2020	2019	2020	2019
Total turnover	105,563	96,892	105,563	96,892
Operating profit	5,544	3,656	6,152	4,518
Profit before taxes	5,160	3,945	5,062	4,013
Profit for the year			4,057	3,351