Profits for Lidl quadruple as shoppers cut costs
Annual profits for Lidl, which is now the sixth biggest UK supermarket, have risen to £41.1 million, from £9.8 million the previous year.
Revenue is up by 1.5%, year on year, to £7.8bn from £7.7bn for the year 2020 to 2021. When comparing the last two years, revenue has risen by 13%, from £6.9 billion in 2019 to 2020.
The latest results are taken from the year ending 28 February 2022. Earnings before interest and tax have risen by 80% to £79 million, from £44 million in 2020 to 2021.
It comes as the UK is in the middle of a cost-of-living crisis and inflation has hit a 41-year high of 11.1%.
In comparison, Tesco recently reported a fall in profits. In the six months to August, underlying operating profits in its retail division fell by 9.8% to £1.3bn.
Yet sales across the whole Tesco group, excluding its fuel business, increased by 3.5% to £28.2bn.
At rival discount supermarket, Aldi, sales have also been boosted this year and it knocked Morrisons off the spot as the fourth-largest supermarket in September for the first time.
Boost to sales for the discount supermarket
The shop said it has seen over 770,000 more shoppers choosing it per week in the run-up to Christmas when compared to last year.
Part of the reason for the recent boost in customers is that so many more people are struggling with rising costs and facing financial strain this year.
It said nearly 60% of shoppers are now choosing it because it offers some of the lowest prices for Christmas shopping.
The company opened 53 new stores in the year to February, bringing the total to 918 across the UK. It also increased the hourly wages of 19,000 employees from a minimum of £9 to £9.30 per hour outside of London and £10.55 to £10.75 within the M25.
“We are in the best possible position to support people”
Ryan McDonnell, Lidl GB chief executive officer, commented: “As the cost-of-living crisis deepens, we are more focused than ever on supporting our colleagues, our customers and the communities we serve.
“This year alone we have invested £50m raising hourly pay rates, making us the highest paying retailer, we’ve donated 5m meals, and we’re serving over 770,000 more customers a week compared to last year.
“As a discount supermarket, we are in the best possible position to support people through these challenging times, and it’s our absolute priority that we continue to do so.”