Operating profits up 31% to €2.2 million at ADM Londis
Group with more than 200 Londis-branded stores says independent retailers under pressure from “significant media spend and intense voucher activity by leading multiples and discounters”
Print15 December 2015
Despite a 3% decrease in like-for-like turnover last year compared to 2013, ADM Londis’ operating profit was nevertheless up 31% from €1.6 million to €2.2 million last year.
The Irish Times reports that the wholesale and retailing group’s revenue actually dropped from €195 million in 2013 to €180 million, for the year ended 31 December 2014.
Earlier this year, ADM Londis – which has more than 200 Londis-branded stores in Ireland – received a cash offer of €23 million from BWG Foods.
However, the company recorded exceptional costs of €2.3 million last year. These included organisational, legal and professional costs surrounding the proposed sale to BWG Foods. When these are subtracted from its operating profits, Londis made a loss of €340,760 last year after tax. By comparison, it achieved an after-tax profit of €1.35 million in 2013.
The number of staff at the company, both within management and administration, fell from 89 to 84. However, the payroll including salaries, wages and pension costs, rose to €4.7 million.
Meanwhile, shareholders’ funds dropped from €20.4 million in 2013 to €19.7 million last year, with a dividend of 25 cent per Class A share paid out.
ADM Londis chief executive Stephen O’Riordan said group cash flow remained “exceptionally strong” last year, enabling the business to fully repay a €6.2 million loan from existing reserves.
However, he said the Irish grocery retail market remained “very fragile”, with competitive pressure exerted on local independent retailers by “significant media spend and intense voucher activity by leading multiples and discounters”.
“Whilst on a standalone basis, ADM Londis has helped retailers to sustain and enhance margins, it is recognised that achieving greater scale is crucial to the group’s ability to bring ever more competitive pricing,” O’Riordan added.
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