Aldi, the prominent grocery retailer, experienced a €24 million increase in turnover for its Irish operations in 2022, reaching a total of €2.03 billion. This growth was attributed to record levels of food price inflation. Despite this rise, the company stated that it intentionally sacrificed profits in order to prioritize its customers and staff.
For the 2022 fiscal year, the German retailer reported a 56% decrease in operating profit, which dropped to €17.39 million from €39.82 million in the previous year. The pre-tax profit for the retailer’s branch also saw a 56% annual decline, totaling €17.19 million in 2022.
Despite the decline in profitability, Aldi confirmed the opening of its next store in Carrigaline on December 7th, creating 30 new job opportunities in the area. This marks Aldi’s 27th store in Cork, and the new €10 million site is situated just off the recently acquired Carrigaline Western Relief Road.
In its third consecutive annual report, Aldi emphasized that the reduction in profits reflected the company’s unwavering commitment to prioritizing its colleagues and customers over financial gains. The retailer explained that it had made substantial investments to maintain low prices for customers while also enhancing staff and compensation.
In a year when food price inflation exceeded 15%, according to Kantar, Aldi played a crucial role in helping customers cope with the ongoing cost of living crisis by providing high-quality, affordable groceries. As consumers faced sustained financial pressure, the retailer noted a 7% increase in the preference for own-label products in 2022, highlighting that over 95% of its product range is own-label.
Aldi expanded its footprint in 2022 by opening six additional stores in Caherciveen, Clonakilty, Ballina, Tuam, Mountbellew, and Ardee. Additionally, store refurbishments were completed in Dungloe, Blessington, Greystones, Killorglin, and the Elysian in Cork. The total number of Aldi stores in Ireland now stands at 160, and the company continues to pursue further expansion plans.
Throughout 2022, Aldi employed 4,665 people, a slight decrease from the previous year, with an average annual salary of €34,300 per employee. This marks the third year that Aldi has reported financial results for its Irish branch, making it the first grocery retailer to do so in 2021.
Earlier this year, Tesco Ireland also disclosed its financial performance, reporting an operating profit of €120 million for the 12 months ending in February 2023, primarily due to several price increases amid persistent high inflation.
Commenting on the latest results, Niall O’Connor, Group Managing Director of Aldi Ireland, stated, “While overall inflationary pressures from last year are subsiding, food inflation remains high, both domestically and internationally. Factors such as supply chain disruptions and delays related to the conflict in Ukraine are indeed significant. We will remain vigilant and respond proactively as we enter the typically busy Christmas shopping period for consumers.”