Lidl GB's 2021-22 profit of £41.1 million ($49 million) on revenue of £7.8 billion is 'a very modest return', but the company is focused on the long term, its boss said on Thursday.
"We've been relentless in the investment in infrastructure and really laying foundations for future growth," Ryan McDonnell, CEO told Reuters after the results were published.
Low Margins
He said margins were low because the business was investing in keeping a lid on prices.
McDonnell noted that Lidl GB invested £653 million in fixed assets in its year to 28 February, 2022, including in two new distribution centres and over 50 new stores.
Operating Profit
Lidl GB, the country's sixth largest supermarket group, currently trades from over 935 stores and is targeting 1,100 by 2025.
In September, rival Aldi UK reported a 79% fall in 2021 operating profit.
Aldi UK has similarly said it is relaxed about its relatively low profitability because it is investing in Britain for the long term.
News by Reuters, edited by Donna Ahern, Checkout. For more retail stories, click here. Click subscribe to sign up for the Checkout print edition.
