Representative Vakakis: We are entering a recession

By Giorgos Lambres

Entering the downturn from now on, Jumbo President, Apostolos Vakakis, expected to speak at the general meeting of the shares. He said 2023 is the year when the downturn will begin. According to him, this means “that during the epidemic, with the help of the war in Ukraine, situations arose in which the explosion of prices was disproportionate to the income of the people. This is something that cannot be managed and the illusions that exist in Greek society that income is not commensurate with the income of the people. Important, they have ideas Just, it’s something that’s not going to be confirmed. It’s just that once the nice summer days are over, we’ll realize there has to be a balance in that part if we’re going to have growth. We’re not going to have growth just to describe it. Before things get better, we’ll have to go through a period where we’ll test the concept of deflation Powerfully. Jumbo prices drop between 100 and 150 prices every day. Because our philosophy is that it cannot be sustainable if one strays from the income of its consumers.”

“For 2023 and 2024, the increase in turnover will likely not keep pace with the increase in profit. That means we said we’re going to increase turnover by 15% and earnings by 10% so that we can move pricing towards the back. In the interest of the customer.”

Succession

For the possibility of succession, Apostolos Vakakis, Chairman of the Board of Directors of the Company, is once again appointed at the helm of Jumbo Group. When a shareholder asked him about the possibility of him leaving the company and being succeeded by someone else, he said “If you ask me if I’m going to break it, the answer is ‘No.’ In any case, I will be succeeded by the one who is more organized for broader things, the one who is more capable.'” Everyone Vakakis is in his department and each department has autonomy to take decisions,” the businessman commented regarding who replaces him in management when he should be absent.

“The good thing for us is that we work and work much better than if we had someone who works as the head of all departments. I haven’t fit in since I was young. And I’m always out of fit,” noted Apostolos Vakakis.

Regarding the company’s financial performance, he added, “The results are collective.” As an indicator, we mention that in the first five months of 2023, group sales increased by 22% compared to the five months of 2022. .

Regarding the search for executives outside the company, he said he was “allergic”. “As for whether I will make a proposal after death, the answer is that I will make it before death.”

It is noteworthy that the general meeting of shareholders approved the distribution of dividends from the profits of 2022 with a total amount of 0.3220 euros per share and after deducting 5% tax, with a net amount of 0.3059 euros.

Israel bet

In connection with the expansion into Israel with the master franchise, the first Jumbo store has already been opened. Regarding the possibility of expanding to other countries, according to Mr. Vakakis, importance is given to the Balkans and Cyprus, while in the rest of the countries it operates through a franchise model. “We’re a relatively small company and we don’t want to get bogged down in the complexities that a foreign country might involve. Israel is an emerging market, with one jumbo shop so far. What would happen if they agreed, go crazy or whatever we don’t know. And we don’t focus too much on that specific country.” Nor is it where Jumbo’s model is based. It provides a boost to Jumbo Group’s overhead, which enhances profitability. In this particular case, another thing is success, but it says nothing. Theoretically, a country like Israel could achieve the sales volume it makes Greece or more. At the moment they did not expect such results and they lost eggs and Easter eggs. We have the profit, we have no loss. They just make us a little dizzy.”