19 Annual Statement
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20 Annual Statement 19 Published June 2020 Musgrave Group Plc | Annual Statement 2019 EXCEPTIONAL TIMES, EXCEPTIONAL PEOPLE 3 Exceptional times, exceptional people These are unprecedented times for our business, our people, for communities and for nations around the world. Every one of us has felt the effect of the pandemic within our communities, and we are all driven by a strong sense of purpose – to protect each other and stay safe. With the Covid-19 pandemic still part of our daily lives, this short annual statement has given us the opportunity Contents to not only report on the financial performance from 2019, but also share some of the inspiring work undertaken by partners and colleagues during the crisis. At a glance 4-7 Our people have shown outstanding resilience, collaboration and Chairman’s statement 8-9 community spirit, and they continue to support communities Message from our Group CEO 10-15 and work tirelessly to keep supply chains moving and food on the shelves. Our retail partners are in the heart of communities Financial statements 16-21 across the island of Ireland and they continue to play a pivotal Exceptional times, exceptional people 22-26 role in looking after local people, and supporting the vulnerable. This document reflects our current situation, and our plans for the business going forward as we navigate our way through the ‘new normal’. We have a strategy in place to move through this period, to build resilience and to thrive in the future. 4 AT A GLANCE Musgrave Group Plc | Annual Statement 2019 Musgrave Group Plc | Annual Statement 2019 AT A GLANCE 5 At a glance Our brands Our people Ireland’s leading Ireland’s leading convenience grocery brand, with a reputation brand, with a focus on health for quality and inspiring food and innovation SuperValu autism-friendly stores initiative wins All Ireland Marketing 41,857 Award for Corporate 35,731 4,751 1,375 Ireland’s leading symbol Our Northern Irish people employed across our people employed people employed in people employed Social Responsibility business and brands in the Republic Northern Ireland in Spain brand, with nutritious convenience brand, with of Ireland on-the-go food local retail partners 2019 financial highlights Our Spanish supermarket Our quality brand for chain, with a commitment to DayToday €0.1bn true food lovers great food and service Daybreak €0.1bn Spain €0.2bn €0.1bn SuperValu and Centra win €0.4bn Dialprix NI €0.1bn Group turnover Profit before tax Net cash 90 Great Taste Awards and Mace € billions € millions € millions 139 awards in Blás Na hÉireann Ireland’s leading Our Spanish cash and carry Musgrave Retail sales sales wholesale and brand, serving hospitality €3.9 billion €5.4 billion foodservice business and retail businesses 3.9 3.9 88 85 8 16 €3.3bn €3.0bn €26m ROI SuperValu 2019 2018 2019 2018 2019 2018 Centra €2.0bn FRANK AND HONEST invested GOURMET COFFEE COMPANY Our fine food wholesale Ireland’s leading in Centra revamps, with brand, created by on-the-go coffee brand 93 stores upgraded Republic of Ireland Northern Ireland Spain chefs for chefs SuperValu 221 36 – Centra 473 95 – Number of Mace – 78 – retail stores DayToday 142 81 – Our quality drinks as of 31 December 2019 Daybreak 251 – – distribution brand Dialprix – – 84 Donnybrook Fair 5 – – 6 AT A GLANCE Musgrave Group Plc | Annual Statement 2019 Musgrave Group Plc | Annual Statement 2019 AT A GLANCE 7 UN Sustainable Development Goals Taking care of our world At Musgrave, sustainability is at the centre of our In the immediate term, the COVID-19 crisis is Reducing our impacts on the environment business strategy. Since its launch in 2017, Taking Care understandably shifting the focus of businesses, of Our World, has set out our People, Planet, Prosperity government and society towards dealing with the fall-out Carbon footprint Energy use in buildings per sqm agenda and our ambition to be Ireland’s most sustainable of the global pandemic. However, while we all battle 45 900 business. This strategy is underpinned by the 17 UN the current economic and human health crisis, we also 800 40 Sustainable Development Goals (SDGs); indeed, we were know that urgent sustainability challenges like climate 700 600 35 2 one of the first businesses globally to commit to the SDGs. change and ocean plastics remain a significant threat 500 (thoursands) 2 MJ/m 400 to the health of our planet and its ecosystems. This is 30 In 2019, our commitment was recognised by the Irish 300 why we are staying focused on our actions in areas like 25 200 government when it appointed Musgrave as a UN tonnes CO decarbonisation, plastics reduction, our community 100 SDG Champion, tasked with furthering awareness of 20 0 impacts and the sustainability of our supply chain. 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 and promoting action on delivery of the SDGs among the public and businesses across the country. Our total carbon footprint increased by 3.0% primarily as a result of an Our focus on efficiency and the use of new technology continues to deliver additional 1.0 million kilometres (+3.26%) in fleet distances although benefits, however, total building energy consumption across our estate this was slightly offset by a 3.0% reduction in waste generation. increased by 1.59% chiefly as a result of increases in refrigeration loads. Musgrave is one of the Irish government’s Sustainable Development Goals Champions. Fleet emission per km travelled Percentage recycled/recovered Here are the four SDGs that we are championing: 0.95 100% 0.90 90% /km 0.85 80% 2 0.80 70% kg CO 0.75 60% 0.70 50% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Despite a 3.0% increase in total fleet emissions. Emissions per Along with reductions in total waste, we maintained our recycling rate at 95.4 kilometre travelled were reduced by a further 0.1% Total waste generation Good health and Decent work and Sustainable cities Responsible 25 well-being economic growth and communities consumption and 20 production As a business that feeds We are Ireland’s largest We aim to make a 15 one in three people private sector employer, positive impact on the We have ambitious targets 10 kilotonnes every day, we take our and with our retail planet by enabling to minimise the impact of 5 responsibilities to support partners employ over our partners to make our operations on the world 0 healthier lifestyles very 41,000 people. If we every local community around us and use our 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 seriously. As part of our multiply this by the in Ireland a sustainable network to influence others Total waste generation was reduced by 3.78% during 2019 sustainability strategy thousands of people community. This includes to do likewise. We are we have committed to across our broader our partnership with working to ensure that all of improve the health of network – from producer TidyTowns; our support our retail and foodservice Supporting sustainable communities 2 million people across to consumer – we have a for Clonakilty to become operations will have access the island of Ireland, and significant opportunity to Ireland’s first autism- to food re-distribution reduce salt and sugar in support local economies. friendly town; and our charities to minimise food our own brand ranges We have a strong belief ongoing efforts to surplus. Additionally, by by 10%. that national economic promote and encourage 2025, 100% of our own 75% health is most sustainable recycling. brand, in-store and fresh of products on SuperValu 600 local producers have 10 years of 95% recycling rate for when it has its roots in produce packaging will shelves sourced from been part of Food Academy partnership between Musgrave maintained local enterprise. be recyclable, reusable or Irish suppliers over the last seven years SuperValu and the GAA compostable. 8 CHAIRMAN’S STATEMENT Musgrave Group Plc | Annual Statement 2019 Musgrave Group Plc | Annual Statement 2019 CHAIRMAN’S STATEMENT 9 New ways of working together While these plans have clearly been overtaken by events, they nevertheless form a robust framework that will help us emerge stronger on the other side of the Covid-19 crisis. Our comprehensive business planning undoubtably put us in a good place as we responded to the global health emergency. We have been at the forefront of social-distancing controls and the implementation of “Our priority is to build measures to protect our colleagues. We have been committed to supporting our retail partners through our pool of talent and to these challenging and uncertain times to feed local develop skills from within communities and assist government agencies and community organisations to help the vulnerable and the We have been committed our business, ensuring elderly. I would like to acknowledge the extraordinary efforts of our retail partners throughout the pandemic. to supporting our that we have the people to At the same time, our colleagues have been quick retail partners through deliver on our future vision” to adapt to new ways of working and to innovate and evolve our business to meet the demands challenging and uncertain Nicky Hartery, of market and operational challenges. times and to feed local Chairman, Musgrave I would like to extend my thanks to Chris Martin, who retired from the role of CEO at the end of 2019 after 16 communities.