Henderson Group, the operators of the Spar and Eurospar brands in Northern Ireland, reported a decline in profits last year despite sales rising 4 per cent in 2024 to almost £1.4 billion as staff costs increased and the group pumped money into its store network.
Accounts filed with Companies House in the UK reveal that after-tax profits at the group dipped by 12 per cent to just under £43.8 million in 2025 from £50.2 million in 2023.
Sales at the group jumped by 3.8 per cent to £1.38 billion, however, which the directors said was “modest” but in line with the industry trens against a backdrop of rising costs.
The increase in turnover was attributed to “positive like-for-life performance” in its 103 owned and seven independent stores along with the expansion of its footprint through acquisitions.
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Like-for-like grocery sales at Henderson Group increased by 1 per cent during the year, while sales at its food service division climbed by more than 10 per cent.
The group employed more than 5,320 people in the year, up 4 per cent on the same period in 2023, according to the filings.
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Staff costs, meanwhile, rose by almost 11 per cent in 2024 to £146.6 million.
In a report attached to the accounts, the directors said Henderson Group had invested in employee remuneration in the year, plus “a wide range of initiatives designed to improve colleague engagement”, which had helped with staff retention.
“Operating costs were well-controlled and within budget,” the directors said, but said the group’s “strategic investment” in its workforce had contributed to a fall in operating profits.
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Henderson Group’s food service division continues to grapple with “uncertainty around Brexit and the Northern Ireland Protocol”, the directors added.
“Whilst the Windsor Framework has alleviated some of these challenges, uncertainty remains as elements of the trading relationship evolve”, they said.
Cost pressures, “including the impact of inflationary driven wage growth and the current UK government’s fiscal policy”, continue to add to the challenges facing the retail sector in Northern Ireland, the directors also noted.
