Aldi profits soar to €327m

Discount supermarket giant Aldi last year continued to have exponential growth in Ireland and the UK as its pre-tax profits increased by 65% to £260.89m (€327.2m).

Accounts for the German-owned Aldi Stores Ltd just posted to the Companies’ Office show the retailer had the sharp jump in profits after revenues soared by more than £1.38bn or 36% from £3.89bn to £5.27bn in the 12 months to the end of December last.

Aldi, which opened its first supermarket here in 1999, has now over 100 stores in the country and continues to expand.

The latest data from Kantar Worldpanel show Aldi increased its market share of the Irish supermarket sector to 8.3%. It has been the fastest growing supermarket here since the middle of 2008 with the company tripling its annual spend on Irish- sourced products in the past five years, helping to maintain 20,000 jobs in the food industry.

Last year, the company opened its 100th store in Ireland at Callan, Co Kilkenny, and announced plans to create a further 300 jobs with 20 new store openings. Aldi, which does not disclose sales or profits specifically in Ireland, increased its operating profits by 68% across Ireland and the UK from £172m to £271m.

The figures show £12.27m from interest charges and a £1.6m loss of sale of fixed assets reduced profits to £260m. According to the directors’ report the group has continued to make significant investment in expansion, opening 48 stores that followed the opening of 34 stores in 2012.

The directors state the investment also involved the opening of a second distribution centre in Mitchelstown, Co Cork in September last year.

The 59,535sq m facility serves Aldi’s stores in Cork, Limerick, Kerry, Tipperary, Kilkenny, Clare, Waterford, Galway, Mayo, and Waterford.

The report states that “competitive pressure in the UK and Ireland is a continuing risk for the group”. The directors state they “believe the group’s strong balance sheet will help support future growth of the business”.

The firm had share-holder funds totalling £1.824bn last year that includes accumulated profits of £611.8m.

Its cash last year increased from £269m to £277m while it also had investments of £197m.

The filings show that the numbers employed by the company increased from 11,799 to 16,781 last year with staff costs increasing from £275m to €361m.

The figures show that the highest paid director received £1.37m in emoluments and pension contributions last year.

The profit last year takes account of £85.2m in non-cash depreciation and £45.38m in operating lease rentals.

The company made charitable donations of £902,988 during the year.