Aldi revenue in UK and Ireland exceeds £10bn

Grocery discounter has invested in expansion of store and distribution network

Profit before tax at  Essen-headquartered Aldi increased almost 3%  to £220m last year.  Photograph: Suzanne Plunkett/Reuters

Profit before tax at Essen-headquartered Aldi increased almost 3% to £220m last year. Photograph: Suzanne Plunkett/Reuters

 

Revenue at Aldi’s UK and Ireland arm rose by £1.4 billion (€1.58bn) last year as the grocery discounter continued to invest in expansion of its store and distribution network.

Aldi’s turnover exceeded £10.1 billion (€11.3bn) in 2017, up 17 per cent, while it invested £447 million (€504m) to “improve and increase the group’s store and distribution network”, recently filed accounts show.

The investment figure, which is down slightly on 2016, allowed for the opening of 74 new stores, leading to a jump of more than 3,000 in the number of employees.

Aldi achieved a record market share of 11.8 per cent in the Republic in October – the most recent survey by Kantar Worldpanel. In the UK, the retailer has a share of 7.6 per cent.

Profit before tax at the Essen-headquartered company increased almost 3 per cent to £220 million (€248m) and it generated net cash of £450 million (€507m).

Competitive pressure

Risks to the company included “competitive pressure in the United Kingdom and Ireland” and foreign currency exchange risks “which impacts on purchases made in foreign currencies and translation of the Irish operation”.

“Following the UK’s decision to leave the European Union the group has established appropriate internal resource to consider and mitigate the effect of Brexit on the group’s operations and future financial performance,” the directors said.

Aldi employed more than 33,000 people across the two countries last year with wage and salary costs rising almost 17 per cent to £744 million (€839m).

Aldi does not disclose financial figures for its Irish operation. The retailer is in the middle of a €160 million store-investment and recently opened its 134th store in the Republic in Dublin.