Higher costs dent Northern Ireland profits for Dunnes Stores
12 October 2023
Despite Dunnes Stores’ Northern Ireland operation remaining profitable in 2022, increased costs nevertheless dented the retailer’s profits, new accounts show.
The Irish News reports that by bringing in an additional £40 million at the tills, the supermarket chain’s sales grew by one-third last year.
Total revenue for 2022 amounted to £158.7m. Cost of sales increased 40% year-on-year to £126.9m, while operating expenses were up 32% to £28.8m. This cut the retailer’s pre-tax profit from £6.4m in 2021 to £3.75m last year.
Following a £1.2m tax bill, the Dunnes Stores’ Northern Ireland business had a bottom line profit of £2.6m. The company also experienced a fall in staff numbers, dropping 38 to 949 people across its 15 northern stores.
Despite this, Dunnes’ staff costs rose 20% year-on-year to £17.9m, approximately £3m more than in 2021.
The director’s report was published alongside the accounts and signed off by Dunnes Stores’ director, Dr Anne Heffernan.
In the report, Dr Heffernan said the company’s policy continues to be underpinned by the philosophy of “better value”.
“As a retail business, almost every decision we make is about providing customers with the widest, freshest range of food products and the most exciting fashion and homewares brands and in-store experience,” she stated.
“All of our stakeholders work hard to achieve this. We know we depend on all of our people and partners and we aim to be a responsible partner and employer.”