Musgrave has delivered a ‘solid performance’, according to its full-year results for the financial year ended 31 December 2022.
Group turnover was up by 3.5% on 2021, to €4.7 billion, while the business recorded a profit before tax of €116 million, which is an increase of 5.1% on the prior year.
The food retail, wholesale and foodservice company ended the year with net cash of €238 million.
Commenting on the results, Noel Keeley, CEO, Musgrave, said, “Each part of our business achieved solid results in 2022.
“Despite rising operational costs, supply chain challenges and fiercely competitive market conditions, our brands performed well.
“The group’s resilient financial performance has enabled us to continue to balance the needs of all our stakeholders, invest in value for our customers, and continue to diversify our business to become a world-class food-and-beverage business.
“Our people and network of retail partners are playing a central role in delivering our response to the cost-of-living crisis and the climate emergency.”
Keeley noted that growth during 2022 was driven primarily by the strong performance of Musgrave’s foodservice business.
“The hospitality sector has experienced a remarkable and welcome recovery following a period of significant Covid-related disruption, as people eagerly return to socialising and dining out,” he added.
“This development, together with our focus on quality products, high standards, and exceptionally high service levels to customers, have all supported the growth of our foodservice business.
“However, retail sales declined during 2022, reflecting the normalisation of shopping behaviours post-pandemic, coupled with tighter household budgets and intense market competition. Despite retail conditions remaining challenging, we have continued to enhance the retail offer by investing in brand innovation and value for consumers.
“The significant growth in our wholesale and foodservice business has mitigated the decline in retail sales. The diversification of our business gives us the resilience to cope with the adverse events of recent years and is enabling us to invest in, and continue to grow, our retail brands into the future.”
In a period of acute inflation and the escalating cost of living, shoppers are displaying a heightened sense of value consciousness, the company noted.
At the same time, the sector is currently facing the most substantial surge in operational costs in a generation.
These changes have posed significant challenges for Musgrave and its retail partners, it added.
Musgrave highlighted that it is doing everything possible at all points in the supply chain to reduce costs and deliver savings to its shoppers.
For example, SuperValu has introduced over 1,000 price cuts while increasing to 6,000 the number of own-brand products, from packaged to fresh items.
According to Musgrave, SuperValu is also investing heavily in promotions, with over 2,000 promotions and offers each month.
Meanwhile, the SuperValu Real Rewards loyalty app is helping customers to save money, with weekly vouchers and money-off coupons.
Musgrave noted that it is continuing to grow its retail, wholesale and foodservice businesses through investment and acquisition, as well as exploring further strategic diversification as opportunities arise.
Musgrave and its retail partners have continued to invest in store revamps, and the group has grown its retail network by 49 stores this year.
Its portfolio of specialist foodservice brands has also grown, through strategic acquisitions in Ireland and Great Britain.
These now include La Rousse Foods, which specialises in supplying the premium market on the island of Ireland, and Italicatessen, a specialist Italian food brand acquired in 2022, as well as Ritter Courivaud and Town and Country, both suppliers of fine food and ingredients to the premium hospitality market in Great Britain.
Musgrave also acquired fresh-fruit and -vegetable supplier Doyles Veg Prep during 2023.