Higher costs contributed to pre-tax profits at the Northern Ireland operation of retail giant Dunnes Stores last year declining by 41% to £3.75m (€4.32m).
New accounts filed by Dunnes Stores (Bangor) show that the company recorded the decrease in pre-tax profits as revenues increased by 34% from £118.76m to £158.68m.
The family owned Irish retailer operates 15 stores in Northern Ireland including four in Belfast, two in Derry and two in Newry.
According to the directors; report signed off by director Dr Anne Heffernan, the group's and company's balance sheets "are robust with strong cash flow and no external funding".
In a report accompanying the accounts, Dr Heffernan states "as a family company with generations of accumulated experience, we see things in the longer term and take our key business decisions accordingly".
In a rare statement on the progress of the Dunnes business, Dr Heffernan states that "Dunnes Stores philosophy is summed up by '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," Dr Heffernan said.
"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," she said.
"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," she added.
Numbers employed by Dunnes Stores (Bangor) Ltd reduced by 38 from 987 to 949 and staff costs increased by £2.97m from £14.89m to £17.86m.
The pre-tax loss also takes into account non-cash depreciation costs of £2.2m. The company recorded a post tax profit of £2.59m after incurring a corporation tax charge of £1.16m.
The most recent Kantar Worldpanel survey shows that Dunnes Stores is the most popular retailer in the market, holding the highest market share of 23%.
At the end of last year, the company's accumulated profits stood at £51.55m while its cash funds increased marginally from £38.06m to £38.2m
The company’s cost of sales last year increased by £35.9m or 30% from £90.89m to £126.87m with operating expenses increased by £7m or 32% from £21.7m to £28.8m.
The retailer's costs increased in part to a 10% pay award confirmed in December 2021 and its full year impact was recorded in 2022. Last December MANDATE welcomed a further 8% increase in pay by the retailer.
Dunnes is one of the largest private employers in Ireland operating 138 stores in Ireland, Spain and Northern Ireland and employs 15,000.
The first Dunnes Stores was opened by store founder, the late Ben Dunne, on Cork's Patrick Street in 1944.
Reporting by Gordon Deegan
