CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Aldi posts huge pre tax profit rise

Article By: ,  Financial Analyst
September 29, 2014 5:45 PM

Discount supermarket chain Aldi continues to go from strength to strength as it posted a huge rise in its full-year profits.

The company, which has been growing at an exponential rate in the past 12 months, recorded a 65.2 per cent rise in its pre-tax profits to £260.9 million for the year to December 31st, 2013. Turnover had grown to £5.27 billion, a 35.7 per cent increase, while its market share grew from 3.1 per cent to four per cent over the course of the year, according to Kantar Worldpanel.

Both Aldi and Lidl have been the success story of the supermarket sector over the past year. The rise of these discount firms has put increased pressure on the more traditional names such as Asda, Tesco and Morrisons. Both Asda and Morrisons have made redundancies over the past 12 months while Tesco has launched its own inquiry after it overstated its guidance for half-year profits by £250 million.

The poor performance from the major supermarkets has allowed Aldi and Lidl to gain significant ground on its competitors. For the 12 weeks to September 2014, Aldi has improved substantially and is only three percentage points behind Waitrose in terms of market share.

Roman Heini, Aldi's UK group managing director, said: "We keep prices constantly low while keeping product quality consistently high, which is exactly what shoppers want. They had become used to thinking you have to pay more for better products. We've shown them this doesn't have to be the case."

Aldi has already unveiled its plans for the coming year. In the past year alone, it has opened 42 new stores across the UK and is due to launch a further 54 in 2014 with a further 60 to 65 planned for 2015. Once all opened, it would take the total number of Aldi stores to 600 in the UK.

Find up to date information on the FTSE 100 and spread betting strategies at City Index.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024