Aldi UK has reported sales growth of 16%, to £17.9 billion (€21.2 billion), in its financial year to December 2023.
Aldi UK described its performance as 'its highest ever period of sales growth', as British shoppers continued to prioritise value despite falling inflation.
Pre-tax profit for the period increased to £536.7 million (€635.8 million), driven by record sales and improved efficiencies across its stores and central functions compared with the previous year.
Reported operating profit increased to £552.9 million (€654.97 million), from £178.7 million (€211.7 million) in 2022, representing a margin of 3.1%.
'All in all, the group reports a notable rise in PBT margin, suggesting that profit perhaps matters again, sustained investment in the UK, and efforts to improve its price competitiveness in a market where it is notably losing share in 2024,' according to Shore Capital.
Its current market share stands at 10%, according to the latest data from Kantar.
'We see Aldi as a very effective supermarket operator, the disruptor of the 2010s in the British grocery scene, which is not going away, clearly, but is maturing and so a more rational player in the big scheme of things [...],' Shore Capital added.
Investment In Expansion
Aldi UK plans to invest £800 million (€947.7 million) to accelerate expansion in Britain with new stores offering quality and affordable groceries to shoppers, while creating jobs and more opportunities for British suppliers.
Giles Hurley, chief executive officer for Aldi UK and Ireland, said, “British shoppers are voting with their feet and choosing Aldi as their first-choice supermarket. We’re responding with our biggest ever annual investment in Britain.
“For every £1 of profit generated last year, we’re investing £2 this year – opening more stores and building the supply infrastructure to bring high-quality, affordable groceries to millions more families the length and breadth of Britain.”
By the end of this year, the discounter aims to open stores in 23 new locations including Muswell Hill, London and Mere Green, Birmingham.
It is also refurbishing 100 existing stores this year, as well as expanding its network of distribution centres and upgrading technology infrastructure.
Currently, it operates more than 1,000 stores in the UK and has plans to scale up to 1,500 outlets.
Other Highlights
Aldi UK invested almost £100 million (€118.5 million) in more than 300 price-cut initiatives in the last three months.
Last year, the company invested an additional £1.3 billion (€1.5 billion) with nearly 5,000 British suppliers. This figure is expected to increase in the current year as the company establishes more long-term supply partnerships.
Earlier this year, Aldi UK confirmed a £750-million deal with the family-owned, Kent-based fruit farm, AC Goatham & Son. It will include the first ever ‘Aldi Orchard’, located on a 200-acre plot on New Green Farm in Gravesend.
The supermarket has invested £79 million (€93.6 million) so far this year in pay increases, including a second rise in June for store assistants.
