Musgrave profits increase 16% to €94m

MUSGRAVE GROUP enjoyed a 16 per cent rise in pre-tax profits to €94 million last year, as it recorded sales of €4.9 billion, up 6 per cent on the year before. The group paid a dividend of €16.5 million to its shareholders, most of whom are members of the eponymous extended Cork family.

The wholesaler's retail brands in the Republic, which include SuperValu, Centra and Daybreak, grew their sales by 12 per cent to €3.9 billion.

Excluding new stores, there was like-for-like sales growth of 8 per cent at both SuperValu and Centra. Overall, the nine retail brands or symbol groups controlled by Musgrave in the Republic of Ireland, the UK and Spain reported a combined turnover of €7.2 billion, up 7 per cent on 2006.

Net debt was reduced by €90 million to €96 million and was helped by the sale of Budgens stores in Britain to franchisees.

Musgrave, which last year bought Mace brand-owners J&J Haslett in Northern Ireland, now supplies goods to more than 3,400 stores.

Musgrave said that along with its retail partners, it created 2,000 jobs in the Republic last year, bringing the total number employed to 35,000.

The sales of €3.9 billion at Musgrave's brands in the Republic compare with sales of €2.99 billion at Tesco, according to figures released by Tesco on Tuesday.

Sales by Musgrave's retailers in the UK, where Musgrave has combined the Budgens and Londis businesses, grew 13 per cent to £2 billion (€2.9 billion).

Musgrave's own wholesale sales of €4.9 billion comprise sales of €2.9 billion in the Republic, €1.4 billion in Britain, €400 million in Northern Ireland and €200 million in Spain, where Musgrave has 90 affiliated stores in Valencia and a cash-and-carry business.

Musgrave chief executive Chris Martin said the group faced a more challenging economic environment but remained confident, with similar levels of investment and new store openings in the Republic expected this year.

Mr Martin said the groceries market was competitive.