Food retailer and wholesaler Musgrave has bounced back into profit, following losses of €9.6 million in 2014.
The company which operates retail brands SuperValu, Centra and Daybreak posted revenues of €4.4 billion and a profit before tax of €67.5 million for 2015. Net cash was €23.4 million at year end.
The group’s turnover for continuing business (Ireland and Spain) was €3.7 billion last year and profit before tax was €52.8 million.
Musgrave chief executive Chris Martin said 2015 marked a year in which the business was brought back to profit and positioned on a path to growth.
“During the recession we invested significantly in our brands which now occupy the number one position in Ireland in each of their respective markets.”
He said SuperValu will invest €28 million in 2016, opening five new stores and adding 350 jobs. Centra will open 16 new stores this year, adding 480 jobs, as part of a €16 million investment programme.
Mr Martin said the group’s exit from the UK contributed to the bounce back to profit in 2015.
“The business in Great Britain incurred significant losses, hence the decision to move on he said.”
“The Superquinn business also resulted in losses in the last two years, but we’ve returned that business to profit now.”
Musgrave completed the sale of its loss-making British business, which operates the Budgens and Londis brands, to Booker for €59.2 million last September. The group made a profit of €19.6 million on the sale.
“We saw a trading loss of €5 - €6million in Great Britain last year. We had losses there and we also had no scale. You’ve got to be nimble, but you’ve also got to have scale to compete.”
He said the Spanish market is improving after several years of difficult trading conditions.
“Our brand work to strengthen the Dialsur and Dialprix offer and investment in the development of concept stores, has helped to deliver a better performance in a recovering Spanish economy.”
He said Musgrave’s business in Northern Ireland had moved into losses, but that the group implemented a turnaround programme in the middle of last year.
Musgrave said the economy is vulnerable to potential impacts such as the uncertainty surrounding the referendum on continued membership of the European Union in the United Kingdom and economic adjustment in some emerging market economies that could push the global economy towards recession. In addition to this, it said the Irish grocery market remains challenging with growing competition.
