Lidl GB has released its latest financial results for the year ending 28 February 2023. The figures highlight substantial investments made in various aspects of its operations, including pricing, employees, suppliers and future growth.
The company reported a notable increase in its revenue, with a growth rate of +18.8% compared to the previous fiscal year (FY). Total revenue reached £9.3bn ($11.5bn), up from £7.8bn in FY21/22.
However, Lidl GB reported a loss before tax of -£75.9m during the same period, a decrease of +£41.1m compared to FY21/22. Earnings before interest and tax (EBIT) were £28.5m, a significant decrease from £79m in the previous FY.
Market expansion and increased market share
During the FY, Lidl GB expanded its presence in the market by opening more new stores than any other supermarket.
This expansion strategy contributed to an increase in customer numbers and market share, which surged from 6.1% to 7.1%. This growth represents the most rapid expansion experienced by the discounter in the past five years.
Lidl GB maintained its commitment to offering low prices to customers by investing more than £100m in price reductions, particularly crucial in a challenging economic year for many households.
The company reaffirmed its position as the UK's highest-paying supermarket by investing nearly £50m to increase the minimum hourly rates for its store colleagues.
Future growth and investment
Looking ahead, Lidl GB has outlined its plans for the new financial year. These include the opening of the largest Lidl warehouse globally in Luton, which resulted in the creation of up to 1,500 jobs.
The company also completed work on an extension to its Belvedere warehouse, continued construction on the expansion of its Bridgend RDC and announced plans for a warehouse in Leeds.
Furthermore, Lidl GB aims to further increase its market share, which is now approaching 8% and has committed to investing more than £4bn in British food businesses for FY23.
The company plans to continue increasing hourly pay rates for its employees and has recruited more than 6,000 new colleagues since the beginning of the year.
