Aldi con­tin­ues growth in Ire­land and UK as prof­its rise to €244m

Irish Independent - Business Week - - BUSINESSWEEK - Gor­don Dee­gan

DIS­COUNT su­per­mar­ket gi­ant Aldi last year en­joyed ex­po­nen­tial rev­enue growth in Ire­land and the UK as its pre-tax prof­its in­creased marginally to £214m (€244m).

The Ger­man store con­tin­ued its ex­pan­sion in Ire­land and the UK in 2016.

The new ac­counts from Aldi Stores Ltd show that com­bined rev­enues for the two coun­tries in­creased from £7.7bn to £8.7bn.

Num­bers em­ployed by the group last year in­creased by more than 2,000 to 30,116.

Aldi, which is headed up in this coun­try by man­ag­ing di­rec­tor Giles Hur­ley, opened its first su­per­mar­ket in Ire­land in 1999. Ac­c­cord­ing to the lat­est data from Kan­tar World­panel, Aldi in­creased its sales by 2.8pc in the past year with Aldi hav­ing a 11.6pc share in the gro­cery mar­ket here.

Last year, Aldi an­nounced its plans to open 20 stores here over the next three years on top of the then 128 stores it op­er­ated here.

Aldi, which does not dis­close its sales or prof­its in Ire­land, last year recorded a 17pc drop in op­er­at­ing prof­its in Ire­land and the UK com­bined, go­ing from £255.58m to £211.27m.

How­ever, net in­ter­est re­ceiv­able of £6.7m last year com­pared to net in­ter­est payable of £43.37m in 2015 re­sulted in the com­pany record­ing the in­crease in the pre-tax profit.

Un­der­lin­ing the group’s am­bi­tions to se­cure even greater mar­ket share in Ire­land and the UK, Aldi last year in­vested £536m in the ac­qui­si­tion of prop­er­ties to in­crease the net­work of stores.

This re­sulted in the open­ing of a fur­ther 74 new stores in Ire­land and the UK last year and this fol­lowed 76 new store open­ings in 2015.

The com­pany did not pay a div­i­dend last year.

Ac­cord­ing to the direc­tors’ re­port, “dur­ing the year, the group con­tin­ued to make sig­nif­i­cant in­vest­ment in ex­pand­ing its busi­ness, open­ing new stores and ex­tend­ing and re­fur­bish­ing a num­ber of ex­ist­ing stores and pre­par­ing for fur­ther growth in the fu­ture”.

The firm had share­holder funds to­talling £2.3bn last year that in­cludes ac­cu­mu­lated prof­its of £1.13bn.

The firm’s cash last year de­clined from £170m to £90m as the group con­tin­ued to in­vest in its store and dis­tri­bu­tion net­work and the re­pay­ment of loans which has re­duced the group’s ex­ter­nal risks.

The fil­ings show staff costs last year in­creased from £596m to £707m.

Direc­tors were paid £3.93m and the high­est-paid di­rec­tor re­ceived £1.89m in emol­u­ments and pen­sion con­tri­bu­tions.

The profit last year takes ac­count of £146m in non-cash de­pre­ci­a­tion and £68.8m in op­er­at­ing lease rentals.

Ire­land boss Giles Hur­ley

Newspapers in English

Newspapers from Ireland

© PressReader. All rights reserved.