The store group, which restructured into fashion and DIY divisions after last year’s sale of variety store group Hema, posted a 16.3 per cent rise in operating EBITDA last year to 228 million (£181.5 million) on sales up 5.2 per cent to 3.18 billion (£2.53 billion) .
DeNunzio said 2007 was a volatile year and that Maxeda, which has 1,346 stores in 12 countries, had outperformed the market despite unpredictable weather and the fall in consumer confidence across Europe.
In the retailer’s annual report, he wrote that economic uncertainty looks likely to continue to hit consumers’ willingness to spend, but said: “I am convinced that the economic model of private equity – which has contributed to the revitalisation of our formats – can deliver higher levels of performance through its focus and drive.”
He warned that regulatory changes in Holland – including higher VAT and potential restrictions on Sunday trading – were a concern. However, he added: “We have strong brands, strong plans, strong teams and a strong focus on execution. With these ingredients, we are convinced we can maximise our opportunities.”
Maxeda, whose private equity investors include KKR, Cinven and Permira, opened 134 shops last year and more than 50 per cent of stores are now outside the Netherlands.
At the retailer’s fashion arm, which includes department stores Bijenkorf and V&D, improvements were made to stores, marketing and private labels.
The DIY arm – including Praxis and Brico – improved its product range and layout and developed common back-office systems.
After joining Maxeda in 2006, DeNunzio hired a raft of UK retailers to help him turn the business around. These included former DSGi director Nick Wilkinson, ex-Principles and Warehouse chief operating officer Mark McKeon and former Asda head of clothing Philip Auld.
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