Operating profit at supermarket group Aldi’s Irish business dropped 3.3 per cent last year amid the cost of living crisis, the group’s latest set of accounts show.
Turnover at the group rose by 3.4 per cent to €2.1 billion in 2023, but overall profitability was down from €17.4 million to €16.8 million. Aldi said it continued to invest in supporting its supplier network while managing “stubborn” input cost inflation during the year.
Profit before tax fell 2.1 per cent to €16.8 million from €17.2 million in 2022.
The group also expanded its store network last year, opening six stores as part of a €67 million capital investment. It announced on Monday that it has completed the purchase of a new 60-acre site in Co Kildare.
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The site is located adjacent to the motorway network and close to Aldi’s existing distribution centre and corporate headquarters in Naas. The company said the investment was part of the business’ long term strategic growth planning.
This year marks 25 years of Aldi in Ireland, which group managing director Niall O’Connor said was “a major milestone for our business”.
Aldi has grown from an initial two stores in 1999 to 162 today, investing €2 billion in capital expenditure. During that time, the company said it had spent more than €10 billion with Irish suppliers, and supports a network of more than 330 Irish businesses across the country.
Purchases from Irish suppliers have increased by 58 per cent since 2019, Aldi said.
The business now employs 4,650 people. It paid €197 million last year in wages and salary costs, bringing the total since its arrival here to €1.3 billion, and says it remains a market leader on pay.
“While it is a moment to look back, it is also timely to take stock and to look to the future,” he said. “Specifically, Aldi’s continued growth and development in Ireland over the longer-term. The retail landscape is in a new phase. The challenge for retailers and consumers of balancing affordability and costs, alongside environmental and sustainability considerations, has never been more acute.
“The investment in the site in Naas means we have resources and infrastructure to support growth at the opportune time.”
The supermarket group has plans for 11 more stores across Dublin over the next five years with an investment of €73 million. It said that would lead to 350 new full-time jobs.
This story was updated on November 25th to correct the scale of Aldi’s investment across Dublin over the next five years to €73 million.
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