DUNNES Stores’ northern operation remained profitable in 2022, but higher costs ate into the Irish grocer’s profits, new accounts show.
Sales for the supermarket chain increased by one-third last year, with the company ringing in an additional £40 million at the tills.
Total revenue for 2022 came in at £158.7m. But Dunnes Stores felt the pinch from surging costs.
Cost of sales rose 40% year-on-year to £126.9m, while operating expenses rose 32% to £28.8m.
It cut the retailer’s pre-tax profit from £6.4m in 2021 to £3.75m last year.
A £1.2m tax bill left the Dunnes Stores’ Northern Ireland business with a bottom line profit of £2.6m.
The 2022 financial statement for the company also revealed a fall in staff numbers, dropping 38 to 949 people across its 15 northern stores.
Despite the smaller headcount, Dunnes saw its staff costs rise 20% year-on-year to £17.9m, around £3m more than it paid in 2021.
The directors report, published alongside the accounts and signed off by Dunnes Stores’ director, Dr Anne Heffernan, said the company’s policy continues to be underpinned by the philosophy of ‘better value’.
"The board of directors believes that this philosophy underpins the success of the company in its first 75 years and it continues to guide us into the future," she wrote.
"As a retail business, almost every decision we make is about providing customers with the widest, freshest range of food products and the most exciting fashion and homewares brands and in-store experience.
"All of our stakeholders work hard to achieve this. We know we depend on all of our people and partners and we aim to be a responsible partner and employer.”
