Losses at SuperValu owner Musgrave Group reduced by €100m last year
Losses at SuperValu owner Musgrave Group reduced by €100m last year and the Cork based business is set to return to profit this year.
The group’s main grocery arm is now toe-to-toe with Tesco in the supermarket space in Ireland, where competition for household spending has become fierce. Growth in the sector of just 1pc last year is well below the rate of growth in the wider economy.
Sales across the Musgrave Group, which controls the SuperValu, Centra and Daybreak retail brands as well as a wholesaling business, hit €4.6bn in the year to December 27, 2014 – the last Saturday of the year.
The group recorded an operating profit before exceptional items of €66m, after exceptionals the loss for the year after tax was €13m, down from €113m in 2013.
Losses over the past two years were associated with the integration and rebranding of the old SuperQuinn stores last year, and previously with cost associated with the restructuring of the group’s British unit.
A deal to sell the British business, excluding Northern Ireland, to Booker Group is currently subject to Competition Authority approval there.
While the business is now focused mainly on the island of Ireland market it said a Spanish unit had performed will in tough conditions.
The flagship SuperValu recorded retail sales of €2.6bn last year, and clocked up 2.6 million customers every week.