ADM Londis announce 10% decline in 2009 annual results

The Jacob Fruitfield Food Group recently received the Deloitte Best Managed Companies Award for 2010 in recognition of its superior business performance. Over the last few years, led by Seamus Kearney, managing director, the company has focused on providing high quality branded food products to the Irish consumer.

Despite a continuation of the 2008 trend that has seen double digit declines in retail sales, Londis is confident it remains "well positioned" within the symbol group market.

Print

Print

News

Londis experinenced a 10% decline in like-for-like sales during 2009. The “resilient” annual results released by the company at the beginning of this month were put down to significant price deflation, lower consumer demand throughout the grocery industry and a policy of investment in promotional and pricing support programmes for Londis retailers. Profit before tax was reported at €2.4m, on a wholesale turnover of €269m and group retailer sales of €560m. These results also included the group’s second and consecutive dividend payment for ADM Londis shareholders since the group’s conversion to plc status in 2004.

According to Stephen O’ Riordan, chief executive of ADM Londis plc:“2009 marked a continuation of the 2008 trend that has seen double digit declines in retail sales. Against this background ADM Londis plc returned resilient results. Considered alongside our low debt profile and strong commercial initiatives, Londis remains well positioned within the Irish symbol group market.”

The company said it was confident that the group and its nationwide network of independent retailers were well positioned to benefit from any uplift in consumer confidence in 2010.

’Riordan emphasised the importance of the completion of the cost savings programme initiated in 2008 which has delivered efficiencies in logistics and support services. “Prudent financial management was an ongoing feature across group operations during 2009 in an effort to mitigate credit risk as a result of the ongoing credit squeeze. In practical terms this resulted in the closure of credit lines to exposed stores and also reduced scope for store recruitment, which in turn impacted on group turnover. The completion of this programme has culminated in a business with a strong financial platform supported by a core group of proven Londis retailers, providing the group with a strong and highly sustainable platform for growth once market conditions improve.”

A major development by the group in 2009 was the establishment of an alliance with UK wholesaler, Nisa-Today. This alliance delivered in excess of €6 billion buying power to retail members.

Leo McCauley, chairman, ADM Londis plc, said that 2010 is not expected to bring radical improvement to the Irish retail market. “Low consumer confidence, challenging employment forecasts and continuing tight credit conditions look set to prevail in the immediate future. Additionally a sustained value motivation on behalf of consumers will continue to bring margin and profit pressure to bear on all operators within the Irish grocery market.

However as a result of the process of very positive change by the Londis Group in recent years, through strategic alliances, strategic procurement, strong value led marketing campaigns and cost management, the group is well positioned in the marketplace.”

Related Articles

Dunnes leads the way as Ireland’s top grocer →

XL Ireland introduces new mascot, Briosca the Irish Wolfhound →

The Busker debuts small batch Single Pot Still Whiskey →

I’m with the brand: Aaron Mulligan, brand ambassador for Diplomatico Rum →