Lidl sees PBT triple to £156.8m as sales rise

Lidl GB has seen its pre-tax profits more than triple to £156.8m, up from £43.6m the previous year, as strong sales growth and higher customer visits lifted performance across its stores.

Revenue increased 7.9% to £11.7bn, with the discounter citing its efficiency model and strategic investment as key drivers. Operating profit also rose to £314.1m from £220.8m.

Lidl said it comes as 38 million more customer visits were made during the year, while switching from competitors and greater loyalty spending contributed to an almost £900m rise in turnover.

During the year, Lidl invested almost £500m in new and upgraded stores and warehouses, and £40m in higher staff pay. More than 3,000 new colleagues also joined the business.

The retailer added that it spent £5.65bn with British suppliers, including £1bn in free-range eggs, £1.5bn in beef and £500m in pork. It has since renewed its commitment to £30bn in British supply contracts over the next five years.

The company recently completed a £285m expansion of its London Belvedere distribution centre and started work on a £150m site in Leeds and expects to open its 1,000th UK store next month.

Lidl’s market share now stands at 8.2%

Chief executive Ryan McDonnell 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, all the while investing strategically in areas that will benefit our people, suppliers and communities. This continues to set Lidl apart and I’d like to thank all colleagues for their support this year in driving our strategy forward. The fact we have maintained the title of fastest-growing bricks-and-mortar supermarket is testament to them.”