Business Irish

Sunday 26 March 2017

Aldi reports profits here and in UK after asset-disposal

retail

Gordon Deegan

Discount supermarket giant Aldi has reported a return to operating profit of £27.6m (€31.3m) after revenues increased to £2.1bn in its Irish and UK stores last year.

Accounts for the German-owned Aldi Stores Ltd just posted to the Companies' Office show that operating profit was £27m after the company recorded an operating loss of £5.9m in 2009.

However, a £58.5m loss on the disposal of assets and interest payments totalling £26m resulted in the company recording a pre-tax loss of £56.8m in the 12 months to the end of December 2010.

This follows the company recording a pre-tax loss of £54.2m in 2009.

Aldi, which does not disclose its sales or profits in Ireland, increased its revenues by £95m or 4.6pc to £2.13bn.

The filings show that the operating profit takes account of a non-cash depreciation cost of £69m last year.

Aldi, which opened its first supermarket in Ireland in 1999, has more than 60 stores in Ireland and employs more than 1,200 people here.

According to the directors' report, "during the year, the group has continued to make significant investment in preparing for further growth in the future".

The filings show that the company had accumulated profits of £256.4m at the end of the year contributing to shareholder funds totalling £1.33bn.

As part of its expansion programme, the company spent £127.8m on the purchase of fixed assets and this followed a spend of £221.3m in 2009.

In 2009, the group initiated a disposal programme of older stores and assets surplus to requirements and this continued in 2010.

As a result, it has made a decision to sell a number of sites which did not fit the core business model.

Irish Independent

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