Musgrave see profits rise 3% to €59.3m

MUSGRAVE Group saw a 3% rise in profits last year to €59.3 million.

The company, which owns the Centra and SuperValu franchises, saw a 20% increase in group turnover to a record €3.34 billion, helped by the inclusion of its British-based Budgens chain of shops for a full year.

Stripping out the 14% boost from Budgens, the group saw sales rise by 6.4%.

Group managing director Seamus Scally said: "We're pleased with 2003, particularly the second-half. We saw a general tightening across all our markets, but we saw good growth."

Mr Scally said the company, was the largest in the grocery market with a share of 24%, ahead of Dunnes and Tesco.

He said margins were tight as there was no food price inflation and in some cases there was even some deflation due to competition, though the rise of discount retailers Aldi and Lidl had little affect on its business as Centra/SuperValu, he said, aimed at different customers.

Turnover in Ireland, generated from its Centra, SuperValu and Musgrave food services and wholesale division, was up to €2.1bn from €1.95bn, helped by increased sales from the two convenience outlets.

The company said additional stores will be opening this year creating 600 new jobs. Musgrave said 10 new SuperValus and 40 Centra stores are planned with the refurbishing of 60 existing shops adding 250 jobs. A further 200 jobs will be created at a purpose-built distribution warehouse in Kildare which is due to open early next year.

Its business in Northern Ireland saw a small dip in turnover to €346 million, although a €12m investment this year should help set it growing again.

The Budgens business had a good year with €727m in turnover, accounting for 22% of the group total.

Musgrave, which took full control of the Budgens chain in mid-2002, plans to sell on the stores to independent retailers. It said it has already had 600 inquires about the 230-strong chain.

Last week, Musgrave finally took control of Londis after a protracted takeover battle. Eoin McGettigan, who heads the existing British business, will take control of the expansion and integration plans.

The Spanish arm, which consists of 56 Dialprix-branded outlets, 17 cash and carrys and nine SuperValus, had a 1.5% rise in turnover to €161m.