German discounter Aldi saw profit margins squeezed in 2016 as the UK grocery market remains intensely competitive. Accounts for Aldi’s UK and Ireland business show overall sales increased by 13% to more than £8.7bn (€10bn).

Despite the bullish growth in sales, profit margins in Aldi’s UK and Ireland business narrowed from 3.3% to 2.4% in 2016 as operating profits fell 17% to just over £211m (€240m). Pre-tax profits for 2016 were slightly higher than the previous year at £214m (€242m).

According to the latest figures from Kantar Worldpanel, Aldi has an 11.6% share of the Irish grocery market and accounts for almost 7% of the £179bn UK grocery retail market.