A leading executive at Aldi Süd, Matthew Barnes, has said that the retailer is keeping a close eye on both foreign exchange markets and the Brexit process, as it seeks to grow its network.
In a statement to announce Aldi UK & Ireland's 2017 full-year results, Barnes noted that "competitive pressure in the United Kingdom and Ireland is a continuing risk for the group".
He added that Aldi is seeking to offset that by investment in products and people, as well as through store expansion.
"The group is subject to foreign currency exchange risk, which impacts on purchases made in foreign currencies and translation of the Irish operation," Barnes added.
“Following the UK’s decision to leave the European Union the group has established appropriate internal resource to consider and mitigate the effect of Brexit on the group’s operations and future financial performance."
Barnes was promoted to the 'coordination board' of Aldi Süd in May, with Giles Hurley taking over the role of UK & Ireland CEO, a position previously held by Barnes.
Turnover Increase
Turnover at Aldi UK & Ireland stood at £10.1 billion (€11.3 billion) in full year 2017, up 17% year-on-year. This follows a 13% gain the previous year. In value terms, the increase in turnover stood at £1.4 billion (€1.58 billion).
Profit after tax amounted to £173 million (2016: £165 million).
In the retailer's briefing note, it said that it invested £447 million last year in the acquisition of assets by which it could increase its store network, which was down slightly on the previous year (£459 million). The group opened 74 new stores last year, the same number as it opened in 2016.
It made corporation tax payments valued at £45 million during the period, roughly in line with the previous year (£47 million).
"During the year, the group has continued to make significant investment in expanding its business, opening new stores and extending and refurbishing a number of existing stores, and preparing for further growth in the future," said Barnes.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
