Czech retailer Notino set for European expansion with new investment

Following a record year for revenue, Czech beauty e-commerce leader Notino has secured a significant loan of €370 million (over CZK 9 billion) to support its ambitious plans for expansion across Europe.

The funding, arranged through a syndicate of the country’s largest banks, aims to bolster Notino’s operations, including infrastructure improvements, inventory expansion, and further market penetration.

2024 has been a record year for Notino. The company saw a 30 percent increase in its turnover last year, surpassing €1 billion (CZK 25 billion), with notable growth in markets like Switzerland and Poland.

Poland, the company's largest international market, accounted for 15 percent of its total turnover. The company also built a new 28,000-square-meter warehouse in Poland and launched a new office in Bulgaria, alongside upgrading several other locations.

Looking ahead, Notino CFO Jakub Šedý expressed optimism that the company would continue its upward trajectory. Notino expects to hit €1.5 billion (CZK 38 billion) in revenue for the current fiscal year, marking an impressive 25 percent year-on-year growth.

The company’s ability to weather the current economic challenges is expected to be boosted by the crucial holiday season, where demand typically peaks.

The new loan is not entirely new financing but a major extension of an existing credit facility. Šedý explained that part of the loan will be used to refinance previous debts, enabling the company to take advantage of better terms.

This restructuring opens up additional funds for new investments aimed at scaling operations and improving logistics. The syndicate backing the loan includes major Czech banks Česká spořitelna, Komerční banka, ČSOB, Citibank, and recently added UniCredit Bank.

Speaking to local server Seznam Zprávy, Šedý noted that the financing was a clear sign of trust in Notino's business model and its potential for continued growth, particularly as it looks to extend its reach beyond its current markets.

While the loan provides the company with the capital it needs for expansion, Notino is also exploring additional ways to secure funding. Šedý hinted that issuing bonds might be a future option, diversifying its financial strategy and complementing its bank financing model.

The Czech company is also investing heavily in IT system upgrades, infrastructure, and security to maintain its competitive edge as it continues its European growth.