By Gordon Deegan
Pre-tax profits at the Irish arm of US food giant Sysco Foods last financial year almost doubled to €29.04 million.
New accounts for the Co. Limerick-based business – formerly Pallas Foods – show that Sysco Foods Ireland UC’s pre-tax profits went up by 83% as revenues increased by 25% or €114.48 million, from €459.32 million to €574.8 million in the 12 months to July 1 last.
The business – which has its head office here at Newcastle West in Co. Limerick – supplies food to thousands of hotels, shops, restaurants and pubs here, along with healthcare and educational facilities.
The business operates from a central Dublin location and seven regional centres, and has continued to expand with the post year end purchase of Ready Chef Ltd.
The most recent accounts filed by Ready Chef Ltd, which was developed and owned by William Tallon and David Tallon, show that revenues increased by 52% to €18.9 million in 2022 as the Glasnevin-based manufacturer and distributor of fruit and vegetables recorded pre-tax profits of €411,021. In 2022, the company employed 85.
At Sysco Foods Ireland, numbers employed last year increased by 132 from 1,365 to 1,497 as staff costs rose from €44.28 million to €59.74 million.
The directors state that in achieving the revenues, the company focused on sales with existing customers through its range of products and quality of service.
The directors state that the gross margin increased by 1% to 23% for the period and this was achieved through a rigid cost management process, strong relationships with company suppliers, and a change in the product mix.
The strong profits of 2023 and 2022 at Sysco Foods follow Covid-19 related pre-tax losses of €8.8 million in 2021 and €24.17 million in 2020.
Operating profits last year increased by 71% from €19.43 million to €33.33 million and net interest payments of €4.29 million reduced profits to a pre-tax profit of €29.04 million.
The business recorded post-tax profits of €24.7 million after incurring a corporation tax charge of €4.3 million.
The accounts show that staff numbers were made up of 1,276 in sales and distribution, 220 in administration, and one director (as of July 1 last).
Four directors served during the year and aggregate directors’ remuneration totaled €481,783.
The pre-tax profit last year takes account of net non-cash depreciation costs of €4.77 million and non-cash amortisation costs of €1.59 million.
The group received zero government subsidy last year after receiving €14.5 million under that heading in the prior year.
On July 1 last, the company had shareholder funds of €125.29 million that included accumulated profits of €81.49 million.
The company’s cash funds dipped marginally from €17.6 million to €17.5 million.