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Lidl has bounced back into the black in the UK as shoppers switched more than £500m of spending to the disctounter from rival supermarkets.
The German-headquartered group published its latest UK accounts for the year to 29 February 2024 as it celebrates 30 years since opening its first stores in the country.
It claimed to have experienced the highest growth in customer visits of any supermarket last year as revenues increased 17% to almost £11bn.
Lidl said 60% of British households now shopped at the discounter, with more than 35 millions more trips made to its stores in the period year on year.
The business added it also registered the highest increase of products sold across the sector, with shoppers putting more than 267 million more items in their baskets than the year before.
It helped pre-tax profits soar to £43.6m, compared with a loss of £76m in the prior year.
CEO Ryan McDonnell said: “We’ve come a long way since we opened our first stores here 30 years ago, from stocking jars of frankfurters to now having over two thirds of our products sourced from British suppliers.
“While our product range has continued to evolve, we’ve stayed true to our customer promise of offering the best value on the market. In doing so, we have become trusted by households across the country to be their one-stop shop, while always supporting British food production.
Lidl is accelerating its expansion plans with 18 new stores set to open in the next few months, including nine in the next four weeks, followed by around 40 more over the next financial year.
“Now, 60% of households are choosing to shop at Lidl, and they’re coming back more frequently, which is a fantastic sign of increasing loyalty,” McDonnell added.
“We have great momentum and, although our ambitions have no ceiling, we won’t rest on our laurels. We’ve been laying the foundations for further growth whilst creating an even better store experience for shoppers.
“As we look to the future, our customers, colleagues, and suppliers can count on us to always offer the best value, the best pay and long-term commitments so that we can continue to grow together.”
Morning update
Britvic has hailed “another outstanding performance” as strong demand for Pepsi, Tango and Lipton and an improved performance in Brazil lifted annual revenues and profits.
Volumes increased 3.1% in the year to 30 September thanks to organic growth and the acquisitions of Jimmy’s in the UK and Extra Power in Brazil.
Britvic highlighted significant growth in emerging categories in the UK, with double-digit growth for plant-based milk brand Plenish.
Group revenues rose 8.6% to £1.9bn in the year, with adjusted EBIT up 14.9% to £250.9m.
Pre-tax profits increased by 10.5% to £173.2m despite the group taking a £21.3m hit related to the proposed takeover by Carlsberg.
CEO Simon Litherland said Britvic had “delivered another excellent financial performance this year”.
“Subject to approval from the regulatory authorities, we anticipate that the acquisition by Carlsberg will complete in the first quarter of 2025,” he added.
“I am confident that the prospects for our brands and people are extremely positive, and I look forward to them going from strength to strength.”
Inflation in the UK jumped by more than expected to a six-month high as energy prices increased, according to the latest data released this morning.
Headline UK inflation moved to 2.3% in the year to October, up from 1.7% in the previous month, the Office for National Statistics reported.
Food price inflation nudged higher to 1.9%, compared with 1.8% in September, but remained well down from its peak of almost 20% in 2023.
The British Retail Consortium warned the recent tax changes in the Budget could spark “long term inflationary worry”.
Kris Hamer, director of insight at the BRC, said: ”. If the government wants to prevent a return to high inflation, it needs to consider mitigating the impact of these costs on retailers.”
Premium English sparkling wine producer Gusbourne has partnered with wine and spirits distributor Enotria&Coe.
The partnership is expected to broaden the reach of Gusbourne’s wines within the UK on-trade and drive incremental sales in Q4 2024 and beyond.
CEO Jonathan White said: “It is tremendously exciting to be pioneering the first hybrid distribution partnership of this scale in the UK and we are thrilled that this initiative will enable more sparkling wine consumers to be able to enjoy our wines in leading hotels, bars and restaurants throughout the UK.”
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