Juan Roig states his case and defends Mercadona’s 10 per cent increases

Juan Roig states his case and defends Mercadona's 10 per cent increases

JUAN ROIG: Mercadona president and majority shareholder Photo credit: Juan Roig Alfonso

MERCADONA had a net profit of €718 million last year, 5.6 per cent more than in 2021, while its €31 billion turnover rose by 11 per cent thanks to inflation.

Speaking to the media on March 14 as the family-owned company announced its 2022 results, its president Juan Roig admitted that Mercadona had put up its prices “tremendously.”

“But if we hadn’t, there would have been an unbelievable production chain disaster,” Roig said.

“Making a profit is a very good thing, just so long as it’s shared between employees, suppliers, clients and society,” he added.  “A business is not synonymous with capital.”

The price increases could have been worse, Roig maintained.  The company “had given its all” to reduce the effects of the higher prices on consumers, acting as a retaining wall between the value chain and the public.

Mercadona raised its prices by an average of 10 per cent in 2022 and its overheads by 12 per cent, Roig said, with a difference of €600 million that had been absorbed by the company.

Referring to the possibility of creating a “shopping basket” like that of France, Roig did not mince his words.

“Capping prices isn’t possible, it’s a pointless gesture, like wanting water than doesn’t make you wet,” he declared.

“Measures like these only have a negative impact on the quality of the products.”

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Written by

Linda Hall

Originally from the UK, Linda is based in Valenca and is a reporter for The Euro Weekly News covering local news. Got a news story you want to share? Then get in touch at editorial@euroweeklynews.com.