Amid a growing competition, network companies still maintain not only their overall profit margin (gross profit), but see growth as well. Over the past 3 years (2019-2022), all four companies increased gross margin by at least 1 percentage point, the companies' profitability was the highest in 2022.
The largest chain of stores in Georgia is Nikora, operating under the Nikora Supermarket and Libre brands, with an annual turnover of GEL 895 million in 2022.
The second largest player is Ori Nabiji, whose revenue is just 2% lower than Nikora's revenue. In 2019-2022, “Ori Nabiji” is the leader in terms of revenue growth. If in 2019 the company’s revenue was only 71% of Nikora’s revenue, in 2022 Ori Nabiji almost caught up its largest competitor in terms of annual turnover.
In recent years, new Magnit chain also sees rapid growth - its revenue has soared almost 3-fold compared to 2019.
In 2022, the companies opened new facilities: Nikora +93; “Two steps” +71; Carrefour +18; "Magnet" +17.
“Companies with the lowest overall profit margins (Ori Nabiji and Magnit) see the highest growth. Nikora has the highest gross margin. The parent company Nikora is owned by a large manufacturer of sausages and processed foods whose products are sold in Nikora supermarkets and are likely sold at higher profit margins.
The share of companies' operating expenses in revenue ranges from 18% to 21%. The exception is Ori Nabiji with lower operating expenses in revenue (12%) compared with its competitors being the most profitable in the sector.
Carrefour and Magnit see the lowest profit, Ori Nabiji - the highest profits.
