Dunnes Stores Northern Ireland has reported a decrease in pre-tax profits.
The latest financial results of the Northern Irish operation of the Irish retailer reveal that higher costs contributed to pre-tax profits declining by 41%, to €4.32 million (£3.75 million).
New accounts filed by Dunnes Stores (Bangor) show that the company recorded the decrease in pre-tax profits as revenues increased by 34%, from £118.76 million to £158.68 million.
Dunnes Stores operates 15 stores in Northern Ireland, including four in Belfast, two in Derry, and two in Newry.
The numbers employed by Dunnes Stores (Bangor) Ltd reduced by 38, from 987 to 949, and staff costs increased by £2.97 million, from £14.89 million to £17.86 million.
The pre-tax loss also takes into account non-cash depreciation costs of £2.2 million. The company recorded a post-tax profit of £2.59 million, after incurring a corporation tax charge of £1.16 million.
At the end of last year, the company’s accumulated profits stood at £51.55 million, while its cash funds increased marginally, from £38.06 million to £38.2 million.
The company’s cost of sales last year increased by £35.9 million, or 30%, from £90.89 million to £126.87 million, while operating expenses increased by £7 million, or 32%, from £21.7 million to £28.8 million.
The retailer’s costs increased, in part, to a 10% pay award confirmed in December 2021, and its full-year impact was recorded in 2022. Last December, Mandate welcomed a further 8% increase in pay by the retailer.
Highest Market Share
The latest grocery market share figures from Kantar in Ireland show that Dunnes Stores continues to hold the highest market share among all retailers in the Republic of Ireland, at 22.9%, with year-on-year growth of 15%.
The Kantar data reveals that this growth stems from shoppers returning to stores more often – up by 2.1%, year on year.