Aldi Denmark has reported a net loss of DKK 585 million (€78.6 million) in its 2022 financial year, compared to a loss of DKK 393 million (€52.8 million) the year before.
Net sales at the discounter rose by 4% to DKK 3.9 billion (€520 million), it said – the highest sales total in its history – however a combination of increased purchase prices, cost pressures, and costs associated with its impending withdrawal from the Danish market all weighed on its profit performance.
'Significant Increases'
"2022 was a challenging year for the entire grocery industry, which was characterised by significant increases in purchase prices and significant cost pressure, which also led to an unsatisfactory result for Aldi," Finn Tang, Aldi Denmark chief executive, said in a statement.
"However, we managed to keep the prices at a competitive level and minimise the negative consequences of the inflationary crisis for our customers. Through an active pricing policy and good cooperation with our suppliers and across the organisation, we thus maintained Aldi's position as a guarantor of attractive prices despite high inflation."
Withdrawal From Market
At the end of 2022, Aldi announced it was set to withdraw from the Danish market, and sell its business to REMA 1000. The transaction is currently pending approval from the Danish Competition and Consumer Authority, and is expected to be completed by the second half of the year.
At the start of 2023, Aldi Denmark also offloaded a tranche of 16 stores to Salling Group, Lidl and Coop Denmark.
"We are grateful for our customers' support and trust over the years," Tang added. "Although our activities in Denmark will soon cease, we take pride in ending on good terms properly in the 120 Aldi stores that are still open, at the head office in Albertslund and at our three logistics centres."
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© 2023 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.
