Aldi: Profit at U.K., Ireland Unit Slumped by Nearly 80% in 2021

By Scott Kanowsky 

Investing.com -- Profit at Aldi's U.K. and Ireland division slumped sharply in the year to the end of December 21, as the grocer was hit by pandemic-related expenses and investment in maintaining low prices.

Aldi said the unit's operating income dropped by 79% during the 12-month period to £60.2M. Sales growth at the privately owned business also slowed, with revenue rising by 0.9% to £13.645B.

However, the firm said trading had "accelerated quickly" over the past six months, thanks to the end of COVID-era restrictions and the cost-of-living crisis leading more consumers to choose Aldi's low-price offerings.

"Preserving our price discount and rewarding our people will always be more important to us than short-term profit. Being privately owned means we can keep our promises even when times are tough," said chief executive officer Giles Hurley in a statement.

Hurley added that Aldi - the U.K.'s fourth largest supermarket chain - plans to open 16 new stores in Britain before the end of the year, while also expanding on dozens of other locations.