Musgrave group paid out dividends of €15.5 million last year to members of the Musgrave family and to management in the Cork-based retail and wholesale empire on the back of a 14.2 per cent rise in pre-tax profits to €81 million.
The increase in the dividend to more than 100 shareholders in the group that owns the Centra and SupervValu brands from €14.7 million in 2005 indicates that the abolition of the Groceries Order last year had no adverse impact on Musgrave's business.
This is at variance with claims from independent retailers that the removal of the order preventing below-cost selling would have catastrophic implications for the sector.
Revenues at Musgrave's, which operates one of Ireland's largest franchise networks of supermarkets and convenience stores and has significant operations in Britain and Spain, rose 4.5 per cent last year to €4.6 billion. This includes €500 million in cash-and-carry sales to non-franchisees.
"The outlook for 2007 is for good solid growth this year," said chief executive Chris Martin.
Among the biggest privately-held Irish businesses, Musgrave is controlled by the wider Musgrave family, who own 75 per cent of the group. The remainder is held by management and staff.
Net debt fell by €139 million last year to €186 million after the sale of 59 company-owned Budgen's outlets in southeast England to franchisees.
Musgrave is poised to complete the sale of its 70 remaining Budgen's stores this year, by which stage all its revenues will be derived from the wholesale trade.
While Musgrave has increased its banking facilities to €600 million from €409.3 million, Mr Martin downplayed suggestions that the group would use that money to fund a big acquisition. "There are no acquisition targets in mind for that €600 million."
Acknowledging that Musgrave took a tentative look with industrial holding firm DCC at Statoil's Irish business when it came up for sale last year, he said the group would take an interest in acquiring the retail side of other filling station groups if they came on the market. While only a few acquisition opportunities remain in Britain, he said Musgrave would not be interested in making deals where prices were inflated.
Mr Martin said cost increases were rising at a higher rate than retail prices, but insisted that that would not result in lower profit margins in the current year.
After the opening of 47 new Centra convenience outlets in 2006, the group said another 40 would open this year.
It believes there is potential to open a "minimum" of 25 to 30 stores next year but denies that the Irish market is reaching saturation point.
Retail sales at outlets supplied by Musgraves rose 7 per cent to €6.7 billion. Sales in the Republic reached €3.4 billion, more than €2 billion of which were at large-format SuperValu stores.
SuperValu sales were up 11 per cent overall and up 6 per cent on a like-for-like basis. Centra sales were up 17 per cent and up 8 per cent like-for-like.
In Northern Ireland, retail sales at outlets supplied by Musgrave grew 9 per cent to €556 million. The group had revenues of €2.6 billion in Britain, where it supplies the Londis network as well as Budgen's stores.
In Spain, sales at Dialprix and SuperValu retailers grew 8 per cent to €113 million.
Dónal Horgan, head of the SuperValu and Centra division, said the main growth driver in SuperValu was fresh food sales.
The group and its Irish retail partners plan to invest €180 million in new and existing stores this year. Profits after tax rose 11.7 per cent to €60.7 million in 2006. Operating profit rose to €104.9 million from €101 million.
