Pretax profits soar to £160m at Aldi’s Irish and British operations

Pretax profit more than doubled to almost £160 million (€189 million) at the Irish and British operations of discount supermarket chain Aldi last year.

Accounts for German- owned Aldi Stores Ltd just posted to the Companies Office show that the retailer enjoyed the massive jump in profit in Ireland and Britain after revenue soared by more than £1 billion or 40 per cent from £2.76 billion to £3.89 billion in the 12 months to the end of December last.

The firm’s pretax profit increased by 124 per cent from £70.5 million to £157.9 million during the year.

Market share
Aldi, which opened its first supermarket in Ireland in 1999, now has about 100 stores here. According to the latest data from Kantar Worldpanel, Aldi increased its market share of the Irish supermarket sector by 24.3 per cent in the three months to September 15th, with Aldi and German discount rival Lidl sharing 14.9 per cent of the Irish supermarket business.

Aldi, which does not disclose its sales or profits in Ireland, increased its operating profit by 68 per cent in Ireland and Britain from £102 million to £172 million. The figures show that £17.8 million from interest charges and a £1.8 million loss of sale of fixed assets reduced the firm’s profit to £157 million.

According to the directors’ report, during the year the group continued to make significant investment in expanding its business, opening more than 30 stores in Ireland and Britain, following the opening of 29 stores in 2011. The directors state that they “believe the group’s strong balance sheet will help support future growth of the business”.

The firm had shareholder funds totalling £1.65 billion last year, including accumulated profits of £402.7 million.

Its cash pile last year declined from £293 million to £269 million, while it also had investments of £213.4 million.

Aldi’s filings show that the numbers employed by the company increased from 7,411 to 11,799 last year with staff costs increasing from £206 million to £275 million.

The highest-paid director received £1.3 million in emoluments and pension contributions last year.

The profit last year takes account of £78.4 million in non-cash depreciation and £46 million in operating lease rentals.