ADM Londis Sees Profits Before Tax Rise 35% In FY 2013
Published on Apr 7 2014 2:58 PM in Retail
ADM Londis has announced a profit before tax of €1.67 million for the year to end 31 December 2013, a 35% increase on the previous year (€1.23 million). Organic like-for-like turnover (excluding tobacco and call credit categories) grew by 1% in the period.
Despite organic growth in core sales, total revenue in 2013 declined by 4.4% to €195m (2012: €204m). In a statement the retailer said that this was 'driven in the main by a decline in the tobacco and call credit categories and the closure of a small number of underperforming stores'.
It added: 'Profit from ordinary trading improved as a result of a more favourable mix of sales with reduced reliance on low margin categories and increased volumes through Londis’ higher margin chilled distribution network.'
A ten-year goodwill amortisation process for its Londis Top Shop acquisition in 2003 also delivered a year-on-year benefit of €0.35 million to the group's performance.
The period saw the signing of an agreement to join the Stonehouse Group, a strategic buying arrangement that will 'be margin enhancing and will enable Londis’ retailers compete all the more aggressively with international multiples and discount chains'. It also announced plans to enhance its commerce platform, through its subsidiary Genisis Innovative Software.
'Despite a challenging market for independent retailers, Londis’ store recruitment gained traction in the second half of the year, culminating in seven new store openings by year end,' the company added. 'These new stores will have a positive impact on 2014 turnover. This has been further boosted since year end following an extension (to 2019) of the Group’s partnership with the Griffin Group, one of the country’s largest symbol group retailers'.
Commenting, ADM Londis Chief Executive, Stephen O’Riordan (pictured) said: "Whilst overall retail sales are showing some growth in 2014, it will take some time before this is reflected in grocery market performance. We expect to see very little improvement in household finances in 2014 suggesting that consumers will remain acutely conscious of day to day spending. "Notwithstanding, the Group is beginning to see the trading benefits of new stores recruited to the Group in 2013 and this has been further underpinned by our new partnership agreement with the Griffin Group post year end. We see this as a strong endorsement of the Group’s retailer offering and partnership approach."
© 2014 - Checkout Magazine by Stephen Wynne-Jones