Sales
€4,853 M
(+7.9%)
# Stores
482
LFL
+7.7%
(excl. fuel)
EBITDA
€282 M
(+6.6%)
CAPEX
€249 M
Highlights of the Year
- First and only retailer in the country to completely eliminate all flavour enhancers and artificial colouring from all of its Private Brand food products
- Founding Food Partner for World Youth Day Lisbon 2023 which, together with Jerónimo Martins, offered over 5 million euros in support
- Price reduction on over 1,500 items from a wide variety of categories and brands, as part of the “Baixámos os Preços” (We’ve slashed prices) campaign
- Launch of the book Receitas e Conselhos para Doentes Oncológicos (Recipes and Advice for Cancer Patients), in partnership with CUF (business group specialised in healthcare services), aimed at supporting patients, their families and carers in managing the symptoms and effects of treatments, through food
Message from the CEO
Amidst food inflation and high interest rates, 2023 looked set to be a challenging year, in which the only certainty was the pressure that would be placed on consumer purchasing power, making the savings opportunities created by Pingo Doce even more important for Portuguese families. That’s why we kicked off 2023 with a very strong promotional dynamic and maintained it throughout the year. In June, we strengthened our commitment to always being there for our customers, taking a step further by lowering 1,500 shelf prices. Yesterday and today, Pingo Doce is synonymous with savings. Just as it always has and always will be.
Ensuring clear, rigorous and transparent communication on prices, we led by example in implementing the government’s VAT exemption measure on essential food products.
The year 2023 will also be marked by the start of the intensive plan to revamp the store network, focusing in particular on Fresh Food.
Pingo Doce’s work towards social inclusion was recognised with the Inclusive Employer Brand seal, of which we are immensely proud. Portugal also proudly hosted World Youth Day, with Pingo Doce as the founding partner responsible for feeding all pilgrims and volunteers. A test of sorts for our store, kitchen and logistics teams, which they passed with flying colours.
We look forward to an equally challenging 2024 for the sector and for families, knowing that, at Pingo Doce, we will continue to focus on making sure we continue to be deserving of the trust and loyalty of our customers. A path made possible by our people, who work hard every day to provide the best products at affordable prices.
Isabel Ferreira Pinto
CEO Pingo Doce
More information, particularly about our sustainability initiatives, is provided under “Sustainability” in this Report.
Performance
The beginning of the year was marked by high inflation, and our biggest challenge was to ensure that consumers had access to essential products at the lowest possible price. Against this backdrop, consumption slowed, which resulted in a reduction in volumes and saw the sales of Private Brand products increase significantly.
Maintaining a strong promotional dynamic throughout the year, Pingo Doce recorded solid sales growth, increased its competitiveness, and improved volume performance. In 2023, sales grew 7.9% to 4.9 billion euros, with LFL at 7.7% (excluding fuel).
Net sales
(€ Million)
The Company invested in several initiatives that offered even greater savings for its customers, such as the “Zero Inflation” campaign, promising to make a range of essential products available every week at 2021 prices. In June, with the “We’ve Slashed Prices” initiative, Pingo Doce went even further and lowered the price of more than 1,500 items.
As part of the government’s measure granting VAT exemption on 46 food categories from 18 April 2023, which, in practice, encompassed thousands of items, Pingo Doce ensured clear communication regarding all products included in the measure, immediately identifying them in stores from the date the measure came into force. Price tags designed for such purpose, with the prominent indication of the final VAT-free price, broke down the calculations made, so customers knew exactly what they were paying as a result of the measure.
The “My Pingo Doce” app, launched at the end of 2022, also became an important savings tool with the launch of a new feature – Poupa Shaker (Savings Shaker) – which gives customers the chance to win a discount coupon every day by simply shaking their mobile phone. At the end of 2023, we launched a “Game of the Goose”, giving customers the chance to win 40,000 euros per week and over 2,000 prizes, thus increasing interaction with the end consumer through the app.
As part of the “A Saúde Alimenta-se” (Health is Nurtured) programme, in partnership with CUF, Pingo Doce published “Recipes and Advice for Cancer Patients”, a book that shares 100 recipes that follow the principles of the Mediterranean Diet, arranged by the main symptoms associated with the different stages of cancer and the respective treatments. The book, now in its 3rd edition, is available in Pingo Doce stores and online, with free access.
At the beginning of August, World Youth Day was held in Lisbon, bringing together thousands of young people from all over the world over the course of a week. Pingo Doce was the Founding Food Partner for the event, offering, together with Jerónimo Martins, over 5 million euros in support. Under the slogan “Pingo Doce feeds World Youth Day”, a large-scale operation was implemented to ensure food for the pilgrims and volunteers, with the installation of Comida Fresca (Fresh Food) stands in the main venues of the event, the mobilisation of employees from all the Jerónimo Martins Group teams in Portugal, and the donation of 400,000 food kits to pilgrims. During this period, stores in the vicinity of the event had longer opening hours and stocks were increased to meet the needs of pilgrims and to continue satisfying those of regular consumers.
Focusing on its social responsibility policy and the connection it has with the communities in which it operates, Pingo Doce held the third national edition of the Happy Neighbourhood programme, in which each store supports a local cause suggested by neighbours or institutions, creating a positive impact in their surrounding communities. With the help of neighbourhood residents, who selected the winning ideas, the Company supported 454 projects.
The Children’s Literature Prize celebrated its 10th edition with the winning book “O livro que não sabia o que queria ser” (“The book that didn’t know what it wanted to be”), written by Márcio Martins and illustrated by Cláudia Abrantes. Pingo Doce also strengthened its commitment to promoting children’s literature by taking part in the Lisbon, Porto, Loures, Tavira and Braga Book Fairs.
The Company enhanced its ECO service – filtered water for reusable bottles – available exclusively at Pingo Doce, which at the end of the year had been implemented in over 280 stores.
Pingo Doce achieved an important milestone by completing the process of eliminating flavour enhancers and artificial colouring from all of its Private Brand food products, becoming the first and only retailer in the country to offer an assortment free of these additives, while preserving taste and the selling price. The Company now has more than 1,300 food products without flavour enhancers or artificial colouring. This milestone is the result of Pingo Doce’s strong commitment to promoting health through food, aimed at providing customers with products that are nutritionally more balanced and as natural and healthy as possible.
Pingo Doce invested 249 million euros in the opening of 11 stores (10 net additions) and in the total refurbishment of 60 locations. In the Azores, four more stores were opened in partnership with the Finançor Group. The Company continued to invest in innovation and opened a Comida Fresca restaurant at Instituto Superior Técnico da Universidade de Lisboa (School of Engineering and Technology) in Lisbon, introducing an innovative concept that combines a more digital shopping experience with quality meals at affordable prices.
Alongside investment in intensifying its promotional dynamic and low price policy, Pingo Doce accelerated its refurbishment programme, implementing a new store concept that embodies its long-term vision for the business, based on the banner’s competitive advantages and key differentiating factors: Perishables, Private Brand and Meal Solutions. At the end of the year a third of the Company’s stores reflected this concept, with 190 restaurants in its stores.
EBITDA grew 6.6%, totalling 282 million euros, with the respective margin standing at 5.8% (5.9% in 2022). Good sales performance helped dilute the cost increase, mitigating the effects of the strong investment in price to protect consumer purchasing power.
Awards and recognitions of note
Pingo Doce’s two central kitchens obtained ISO 14001:2015 environmental certification, one of the most prestigious international standards and a benchmark in environmental management, awarded by Portuguese certification body APCER – Associação Portuguesa de Certificação.
Pingo Doce was awarded the Inclusive Employer Brand seal by Instituto do Emprego e Formação Profissional (Institute for Employment and Vocational Training).
Initiatives to fight food waste were honoured with the CORE “Sustainable Production and Consumption” Prize, awarded by the Católica Lisbon School of Business and Economics.