Lidl GB has reported turnover growth of 16.9%, to approximately £11 billion (€13.2 billion), in its full financial year to February 2024.
The discounter's earnings before interest and tax [EBIT] increased to £220.8 million (€264.96 million), from £28.5 million (€34.2 million) in 2023.
Lidl GB emerged as the fastest-growing UK supermarket in this period, with 60% of households shopping with the discounter.
Moreover, 35 million additional shopping trips were made to Lidl stores compared to the previous year.
As a result, the chain witnessed the highest increase in products sold across the sector, with shoppers putting over 267 million more items in their baskets than the year before.
Ryan McDonnell, CEO of Lidl GB, commented, “We’ve come a long way since we opened our first stores here 30 years ago, from stocking jars of frankfurters to now having over two-thirds of our products sourced from British suppliers.
“While our product range has continued to evolve, we’ve stayed true to our customer promise of offering the best value on the market. In doing so, we have become trusted by households across the country to be their one-stop shop, while always supporting British food production.”
Expansion Plans
Lidl GB is set to open 18 new stores in the coming months as it seeks to accelerate its expansion.
Out of this total, nine stores are scheduled to open in the next four weeks. In its next financial year, the discounter plans to open 40 new stores.
According to Shore Capital, this is 'a measured programme', which supports the investment firm's view that Lidl GB is through its 'strongest phase of growth whilst demonstrating rationality in capital allocation'.
Its most recent store opened in Bristol, nearly 30 years to the day that Lidl opened its first 10 stores in Great Britain.
McDonnell added, “We have great momentum and, although our ambitions have no ceiling, we won’t rest on our laurels. We’ve been laying the foundations for further growth whilst creating an even better store experience for shoppers.
“As we look to the future, our customers, colleagues, and suppliers can count on us to always offer the best value, the best pay and long-term commitments so that we can continue to grow together.”
Analyst Comment
'Lidl is a very good operator, part of a talented and proprietary wider group on many fronts, including technology and vertical integration. Looking ahead, we expect Lidl to remain true to its value roots, so a curated assortment, strong core value credentials leveraging its own growing supply base,' Shore Capital said in a note.
'We are pleased to see the notable improvement in Lidl GB's financial performance albeit is nothing to write home about when it comes to capital returns, a sector wide issue.
'Lidl is, and we sense, will remain a formidable player in the UK grocery scene [...] but also, we believe, a rational player in the UK grocery scene, fitting into our now quite long-standing narrative on sector dynamics of improving productivity per square foot, stable to rising margins and, with capital discipline broadly evident, improving free cash flow credentials.'
