Aldi profits fall 56% as supermarket to open new Carrigaline store

Despite its drop in profitability, Aldi confirmed that its Carrigaline store would be opening on the 7th of December

Throughout 2022, ALDI employed 4,665 people, down marginally on the previous year, with the average annual salary per employee totalling €34,300. Picture Denis Minihane.

Grocery giant Aldi saw turnover across its Irish operations increase by €24m in 2022, totalling €2.03bn as food price inflation reached record levels.

Up 1.1% on the previous year, the retailer said that despite the increase, it had forgone profits in the interest of customers and staff members. 

For the 2022 financial year, the German retailer posted a 56% decline in operating profit, falling to €17.39m, down from €39.82m a year earlier. Pre-tax profit of the retailer's arm also fell by 56% annually, totalling €17.19m in 2022.

Despite its drop in profitability, Aldi confirmed that its next store, located in Carrigaline would be opening on the 7th of December, adding 30 new jobs to the area.

Marking Aldi's 27th store in Cork, the new €10m site is located just off the new Carrigaline Western Relief Road, which Aldi previously acquired. 

Posting its third consecutive set of annual results, the Aldi said in its latest financial statement that the reduction in profits reflected the company's "resolute focus" on putting colleagues and customers before profits.

"The company made substantial investments to keep prices low for customers, in addition to further investment in staffing and remuneration," the retailer said. 

With food price inflation exceeding 15% in 2022 according to Kantar, ALDI said it had "played a particularly important role for customers in respect of the ongoing cost of living crisis through its provision of high-quality, affordable groceries."

As the cost of living crisis placed sustained pressure on consumers, the retailer noted a 7% swing in favour of own-label products during 2022, complimenting the discounter as over 95% of its range is own-label.

The retailer's footprint increased again in 2022 with six additional stores opened in Caherciveen, Clonakilty, Ballina, Tuam, Mountbellew and Ardee, while store refurbishments were completed in Dungloe, Blessington, Greystones, Killorglin and the Elysian in Cork. 

Its number of stores nationwide now stands at 160, with plans continuing to increase this further.

Throughout 2022, ALDI employed 4,665 people, down marginally from the previous year, with the average annual salary per employee totalling €34,300. 

This is the third year ALDI has posted financial results for its Irish arm, becoming the first grocery retailer to do so in 2021. 

Earlier this year, Tesco Ireland joined in disclosing its financial performance, posting an operating profit of €120m in the 12 months ending in February 2023 on the back of several price hikes amid sustained high inflation.

Speaking on its latest results, Niall O’Connor, Group Managing Director, ALDI Ireland said, "While the overall inflationary peak of last year is receding, food inflation continues to be stubbornly high here at home and abroad. Factors such as supply chain complications and delays due to the war in Ukraine are indeed relevant.

"We will continue to monitor the backdrop and respond proactively as we enter what is typically a very busy Christmas shopping period for consumers.”