THE IRISH and UK arm of discount supermarket giant Aldi has reported a return to operating profit of £27.6 million after revenues increased to £2.1 billion.
However, a £58.5 million loss on the disposal of assets and interest payments totalling £26 million resulted in the company recording a pre-tax loss of £56.8 million in the 12 months to the end of December 2010.
Aldi has more than 60 stores in Ireland and employs over 1,200 people here, but does not break out the performance of its Irish operation. It has about 340 stores in the UK, implying Ireland accounts for 15 per cent of sales.
Irish operation Aldi Stores (Ireland) is a subsidiary of Aldi Stores Ltd UK company. Accounts filed with the companies office in Dublin for the UK parent show the combined group increased its revenues by £95 million or 4.6 per cent to £2 billion to £2.13 billion. The operating profit takes account of a non-cash depreciation cost of £69 million last year.
The directors’ report stated: “During the year, the group has continued to make significant investment in expanding its business, opening 24 new stores, extending and refurbishing a number of existing stores and preparing for further growth in the future”. The company had accumulated profits of £256.4 million at the end of the year contributing to shareholder funds of £1.33 billion.
The company spent £127.8 million on the purchase of fixed assets and this followed a spend of £221.3 million in 2009. In 2009 it initiated a disposal programme of older stores and assets surplus to requirements. As a result, it decided to sell sites that did not fit the core business model. This has resulted in impairment provisions of £57 million being charged to the profit and loss account.
