Aldi cost of sales increased more than 2 per cent in the year

Operating profits at the Irish arm of Aldi, which is plotting a major expansion in Dublin, topped €39 million in 2021, a 44 per cent decline from the previous year, as the German-owned supermarket chain grappled with higher prices and the disruption of Covid-19.

Meanwhile, the group’s cost of sales increased more than 2 per cent in the year to more than €1.9 billion while administrative expenses surged by about 35 per cent in 2021 to €53.7 million, eating into Aldi’s margins. Wage and salary costs grew by 5.8 per cent to €157.7 million, with the group hiring an additional 300 employees over the period, bringing its overall Irish headcount to 4,744.

Operating profits of €39.8 million were down 44.8 per cent from more than €72 million in 2021. After tax, Aldi’s Irish business generated profits of €31 million, a decline of almost 50 per cent from 2020.