Musgrave Group profits down 7%
Chris Martin, group chief executive officer, Musgrave Group, believes the company has returned a 'satisfactory performance' and is well-positioned for 2010
Print13 July 2010
Profits in the Musgrave Group fell by 7% last year to €70 million, according to their financial results for 2009. The group reported overall sales of €4.5 billion(€2.7 million of that in the Republic of Ireland) down 3% on 2008. Net debt was also reduced from €86.2m to €59m.
Chris Martin, group chief executive officer, Musgrave Group, said: “This is a satisfactory performance and positions the group well to support our retailers through the challenges of 2010.
“In Ireland, the challenges have been significant. In 2009 the grocery market and food service markets declined by 7% and in excess of 20% respectively.
“Overall sales in Ireland were €2.7 billion, 7% down on 2008. However, by delivering lower prices to the consumer, through re-structuring our business, increasing support to our retail partners and through their investment in their stores, our SuperValu, Centra and Daybreak brands outperformed the market. Our commitment to continue to support Irish suppliers has been a central part of our strategy. 75% of everything sold in SuperValu and Centra was purchased from Irish suppliers during the year. In 2010, our retail partners, who own their stores and live and work in their local communities, are starting to see volume growth again.”
Donal Horgan, SuperValu managing director explained how the company had spent €50 million on upgrading the supply chain in the last year. He also said that they were very happy with the company’s performance considering the tough year that it was. The company, he said, would now be focusing on existing markets and look forward to being in a stronger position for growth opportunities towards the end of 2010. Addressing the issue of Irish food being more expensive than the EU average he said: “The trolley shop has decreased from €150 to €125 over the past year. We have introduced rounded price points and there is constant innovation in our core range.”
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