Alza Doubles Profit to 2.3 Billion
- Alza founder Aleš Zavoral stated in the annual report that prioritizing profit over revenue growth drove the company's results.
- While the macroeconomic and geopolitical situation partially stabilized in 2024,Zavoral noted increased competition in the Czech Republic.
- Zavoral also reported rising costs for labor, advertising, and rent.
Alza founder Aleš Zavoral stated in the annual report that prioritizing profit over revenue growth drove the company’s results. The firm’s financial results for the past year are not yet available, as reported by e15.
While the macroeconomic and geopolitical situation partially stabilized in 2024,Zavoral noted increased competition in the Czech Republic. He stated that numerous Chinese and European companies are exploiting unequal trading conditions, and european legislation is ineffective in enforcing compliance.
Zavoral also reported rising costs for labor, advertising, and rent. Despite this, he views the company’s financial results positively. “2024 confirmed in several instances that a pure pursuit of turnover and growth at any cost is not the right path in business, because it leads to a fragile environment that shows its weaknesses in times of uncertainty and higher costs,” Zavoral added.
At the end of the reporting period, Alza employed 2,470 people on standard employment contracts and 615 on short-term agreements. In 2023, the company averaged 1,856 employees, compared to 2,273 the previous year. Alza spent CZK 2.2 billion on employee costs in 2024, approximately CZK 331 million more than the year before.
The number of alza parcel pickup points increased by 50% year-on-year to 3,600. The company also opened two new stores in Hungary, in Budapest and Győr, and a second store in Vienna.
In addition to electronics and IT, the company’s annual report indicates growth in sales of automotive products, cosmetics, drugstore items, toys, and pet supplies. The launch of over-the-counter medicine sales is also considered meaningful.