By Scott Kanosky
Investing.com – Profits at Aldi’s UK and Ireland division fell sharply in the year to the end of December 21, as groceries were hit by pandemic-related expenses and investment in keeping prices low.
Aldi said the unit’s operating income fell 79% over the 12-month period to £60.2m. Sales growth in the privately owned business also slowed, with revenue rising 0.9% to £13.645 billion.
However, the company said commerce has “accelerated rapidly” over the past six months, thanks to the end of COVID-era restrictions and a cost-of-living crisis that has prompted more consumers to opt for Aldi’s lower-priced offerings.
“Maintaining the discount rate and rewarding our employees will always be more important to us than short-term profit. Having private ownership means we can deliver on our promises even during tough times,” CEO Giles Hurley said in a statement.
Hurley added that Aldi – the UK’s fourth-largest supermarket chain – plans to open 16 new stores in Britain before the end of the year, while also expanding to dozens of other locations.
