Aldi report doubling of profits in UK, Ireland

Discount supermarket giant Aldi last year had exponential growth inIreland and the UK as its pre-tax profits more than doubled to £157.9 million (€185m).

Accounts for the German-owned Aldi Stores Ltd just posted to the Companies’ Office show that the retailer enjoyed the massive jump in profits after revenues soared by more than £1bn or 40% from £2.76bn to £3.89bn in the 12 months to the end of December last.

The firm’s pre-tax profits increased by 124% from £70.5m to £157.9m during the year.

Aldi, which opened its first supermarket in Ireland in 1999, has around 100 stores throughout the country.

According to the latest data from Kantar Worldpanel, Aldi increased its market share of the Irish supermarket sector by 24.3% in the latest period with Aldi and German discount rival, Lidl, currently sharing 14.9% of the Irish supermarket business. Aldi, which does not disclose its sales or profits in Ireland, increased its operating profits by 68% in Ireland and the UK from £102m to £172m. The figures show that £17.8m from interest charges and a £1.8m loss of sale of fixed assets reduced the firm’s profits to £157m.

According to the directors’ report, during the year, the group has continued to make significant investment in expanding its business, opening more than 30 stores that followed the opening of 29 new stores in 2011.