Musgrave expansion fuels strong growth

Musgrave Group Limited have reported pre-tax profits for the 12 months to December 2002 of €57.6m, a 22% increase on the €47.1m recorded for 2001.

Sales also increased by 22% to €2.8bn over the same period.

The results include the figures for British supermarket group Budgens - acquired in July 2002- for the last five months of the year.

Budgens contributed €318m to group turnover and €13m to group operating profit for the five months of full ownership.

Its Irish retail operations also performed strongly with SuperValu recording a 9% increase in retail sales to €1.55bn while Centra's sales increased by 18% to €750m.

The number of Supervalu stores increased to 175 while Centra increased its presence with an extra 19 stores.

Further growth is expected during 2003 with plans for eight new SuperValu and 30 new Centra stores.

The company is also planning to open a new €34m warehouse and distribution operation in Kilcock.

Group managing director, Seamus Scally said: "2002 was a watershed year for the company with the completion of the acquisition of Budgens. I am also pleased to report that each of our areas of business continued to perform strongly throughout the year."

Scally sounded note of caution however stating that growth rates in the sector had declined in the first half of 2003.

Commenting on the results, Group Chairman, Hugh Mackeown added: "The Group sought to expand its operations outside Ireland and the purchase of Budgens has contributed significantly to the development of the Group."

The Musgrave Group is a private family-controlled Irish company founded 125 years ago.