ADM Londis to open 40 stores despite downturn
The company, however, expects the coming months to be more competitive.
Londis chairman, Leo McCauley said retailers are “facing downward pressure on prices, combined with rising interest rates and rising business costs”.
The profits were announced on a wholesale turnover of €371m, up 4.5% on the previous year.
It also said its shares are now valued at €85.04, an increase of 7% on the April 2007 valuation.
Londis opened 35 new stores last year, bringing its network to 370 stores and resulting in a retail turnover of €761m.
This year the company’s investment arm, ADM Londis Investments has committed €15 million to “strategic acquisitions” in Connaught and the Midlands.
This will see it purchase land in these areas as possible locations for Londis stores.
The company recently announced an agreement with Texoil, which will see ADM Londis’s forecourt presence grow to over 100 locations in Ireland.
The deal will also result in 300 additional jobs and add €50m in retail turnover for ADM Londis over the next two years.
Joint chief executive Stephen O’Riordan said 2007 witnessed a marked increase in market competition, highlighted by the significant surge in the pursuit of market share by symbol groups across Ireland.
