Profits slip at Musgrave Group
Following the group’s acquisition of Irish retailer Superquinn last October, its debt increased from a net cash position of €21 million in 2010 to €187 million in 2011.
Working with its retail partners SuperValu, Centra and Daybreak, the group invested €284 million in Ireland in new store openings, refurbishments and acquisitions in the year.
Retail sales at the group’s British operation, which includes the Londis and Budgens chains, reached €2 billion in the year.
The group said its brands had performed well with positive sales growth in both the Irish and British markets. It hopes that th SuperValu own brand products, which have also been launched in UK Budgens stores, will account for €1 billion in group sales by 2014.
Musgrave chief executive Chris Martin said: "The outlook for the group for 2012 remains challenging – especially in Ireland, where we expect to see little to no growth in the grocery market.
"Despite the economic challenges and a consumer that is focused on spending less, we have delivered a good performance with turnover and profit remaining steady for the third consecutive year. Our focus will remain on investing in price for an increasingly budget-conscious consumer and working with our retail partners to ensure innovation and value are at the heart of our offer."
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