Musgrave Group's annual turnover exceeded €5bn for the first time in 2023 as after tax profits increased to €103.9m.

The SuperValu and Centra franchise owner and wholesaler saw revenue increase 6% or €300m from €4.7bn the previous year, while profits were up nearly €5m from €99m in 2022.

Pre-tax profits increased year-on-year from €116m to €128m, and the group ended the year with cash reserves of €193m, down from €238m a year prior.

The Republic of Ireland accounted for more than 80% of Musgrave's sales last year at €4.1bn, with Northern Ireland making up €600m and Spain €300m.

Musgrave brands made retail sales of €6.5bn for the year, including sales of €3.5bn at SuperValu and €2.1bn at Centra with Daybreak (€300m), Spanish chain Dialprix (€200m) and Mace in Northern Ireland (€100m) making up the balance.

Noel Keeley, CEO of Musgrave Group, described the results as "solid".

"We continued to invest in our retail business, ensuring key brands including SuperValu and Centra provided strong value to customers through minimising cost price increases, expanding own brand ranges, and delivering price reductions, promotions and vouchering in a highly competitive market," he continued.

"Meanwhile, our diversified business model, which has proven its resilience through all the challenges of recent years, will enable us to continue to invest in developing a compelling offer that meets the evolving needs of our retail and B2B customers."

Musgrave now has 1,343 retail stores and the group and its retail partners employ 41,000 people.

There are 602 Centra stores and 259 SuperValu stores on the island of Ireland, plus 307 Daybreak shops, 79 Mace outlets, and 90 Dialprix location as well as six Donnybrook Fair stores.

In the group's annual report, Keeley said growth in 2023 was driven by acquisitions and store openings, and that the group's foodservice business had benefitted from a post-Covid rebound in dining out.

Musgrave made capital expenditure of €237m in 2023, 80% of which related to retail store purchases and acquisitions, technological upgrades in the retail supply chain and infrastructure. The remaining 20% was invested in acquisitions in wholesale and foodservice.

"Looking further ahead, we are focused on maximising the strength of our core brands as part of our 2030 strategy," he continued.

Keeley added that AI will play an increasingly significant role in Musgrave stores, supporting "personalised shopping experiences," inventory management, theft detection and reducing food waste.

"Investment in technology is driving innovation in every area of our business and brands, including automation within our supply chain, online platforms to support online shopping and delivery services, and data science to improve shopper experiences and deliver personalised offers," he said.

"This investment in technology is not limited to consumer-facing initiatives. For example, we have made a €50m investment in logistics automation at Kilcock and across our 11 other distribution centres across Ireland.

"This network, which feeds one in three people in Ireland every day, increases our logistics capacity.

"It enables fast and efficient picking of goods from shelves, which in turn enables fast and efficient service for our retail partners and also alleviates the pressure on our workforce by reducing manual tasks, which has been especially crucial in light of a tight labour market."

The news comes just after Musgrave announced it has become the newest member of the 30% Club.

Photo: Noel Keeley. (Pic: Clare Keogh)