Musgrave Group Focuses On GB Turnaround
Cork-based Musgrave Group has admitted that its operations in GB – where it runs the Budgens and Londis brands – did not deliver profitable sales in 2013.
Profit, before tax and operating exceptional items, was €60 million, down16 per cent and sales declined by three per cent.
In a statement, Musgrave Group said: “In 2013 our GB business pursued a growth strategy but this has not delivered profitable sales. We are committed to the GB market and to working with our retail partners to deliver a profitable business for them and for us.
“Following the recent appointment of Peter Ridler, as managing director, to lead the turnaround, we are addressing the performance and implementing fundamental improvements to our brand disciplines and ways of working.”
In light of the diaappointing GB results, Musgrave Group took a write down of €131m in assets in GB including all of the remaining goodwill of €78m arising on the original acquisition of Budgens and Londis, €37m for tangible assets as well as €16m for onerous property obligations.
Commenting Chris Martin, Musgrave Group chief executive, said: “All our markets continued to experience difficult economic conditions in 2013, impacting consumer spending. In a flat Irish grocery market our brands increased sales and outperformed the market.”
He added: “Our GB business underperformed in 2013 and this is being addressed through a turnaround programme which is already underway.”