The supermarket giant has been left counting the cost of soaring inflation and its commitment to offer the “lowest possible prices in Britain”.
However, shoppers have been switching to the bargain brand in droves.
Results show Aldi sales in the UK and Ireland edged-up 0.9 percent to £13.6billion last year. But profits crashed 86.5 percent, from £264.8million to just £35.7million.
CEO Giles Hurley refused to be drawn on what profit it expected this year, or even if it might post a loss.
Instead he said: “We will do whatever it takes, no matter what.” Being privately-owned means “we are able to take a long-term view”, he claimed.
While profits tumbled, the German-owned giant says shoppers have switched to it from all other supermarkets – including rival discounter Lidl.
“Customers are very much voting with their feet,” Mr Hurley said. Earlier this month, figures showed Aldi had overtaken Morrisons as the UK’s fourth
largest supermarket.”
He added that the cost-of-living crisis has also meant shoppers are buying fewer big brand products. He said: “There is an unprecedented move within the grocery market with people moving from branded to own label.”
That benefits Aldi as 90 percent of its range is own-label.
The firm plans to open 16 new stores over the next 12 weeks as part of an ongoing £1.3billion expansion plan.
It had hoped to hit a 1,000-store milestone in the UK and Ireland by this year but fell short due to planning delays and shortages of materials caused by the pandemic.
It now expects to reach the target next year, expanding to 1,200 by 2025.
Mr Hurley said Aldi is largely shielded from the weakness of the pound against the dollar as three quarters of what it buys is from UK farmers and producers.
