Annual profits surge at Lidl GB

(Sharecast News) - Full-year profits surged at Lidl GB, the discounter said on Wednesday, as it continued to roll out stores amid bumper demand. Revenues at the grocer, which is part of by privately-owned German retailer Schwarz Group, rose 7.9% in the year to 28 February to £11.7bn.

Operating profits jumped to £314.1m from £220.8m a year previously, while pre-tax profits soared to £156.8m from £43.6m.

Lidl - which first opened in the UK in 1994 - is due to open its 1,000th store in November. It is one of 13 new shops scheduled to open before Christmas, and 40 before the end of the current financial year.

As well as benefiting from its expanding footprint, Lidl said over £400m of turnover had come from direct switching from competitors.

Both Lidl and larger rival Aldi have enjoyed a boom in recent years, as hard-pressed shoppers seek out cheaper prices amid soaring inflation and high food prices.

According to recent data from retail consultancy NielsenIQ, sales at Lidl rose 11% in the 12 weeks to 4 October, giving it a market share of 7.8%.

Ryan McDonnell, chief executive of Lidl GB, said: "Our results reflect the momentum we've built and the trust shoppers place in us. More households are choosing to shop with us more often, because we continue to deliver on our promise of outstanding quality at the lowest possible prices.

"Over the last year, we have continued to operate with our discounter efficiency at the heart of everything we do."