By Gordon Deegan

Pre-tax profits at the Irish arm of US food giant, Sysco Foods last year increased by 19% to €28.24 million.

New accounts for the Co. Limerick-based business, formerly Pallas Foods, show that Sysco Foods Ireland UC’s pre-tax profits rose as revenues increased by 8% from €603.23 million to €651.64 million in the 12 months to the end of June last.

The business, which has its head office 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 also sells, markets and distributes food products to lodging establishments and other customers who prepare meals away from home in Ireland.

The group’s family of products also includes equipment andsupplies for the foodservice and hospitality industries.

Sysco Foods

The pre-tax profits of €28.24 million follow pre-tax profit of €23.76 million in the prior year.

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 point that the gross margin decreased by 1% to 23% for the period “and the result has been achieved through a rigid cost management process, strong relationships with company suppliers and changes in product mix”.

The business has recorded strong profits over the last four years following Covid-19 related pre-tax losses of €8.8 million in 2021 and €24.17 million in 2020.

Operating profits last year increased by 15% from €27.53 million to €31.63 million and net interest payments of €3.39 million reduced profits to a pre-tax profit of €28.24 million.

The business recorded post-tax profits of €24.1 million after incurring a corporation tax charge of €4.14 million.

Staff

At Sysco Foods Ireland, numbers employed last year increased by 57 to 1,589 as staff costs rose from €63.49 million to €66.66 million

The accounts show that staff numbers were made up of 1,300 in sales and distribution, 288 in administration, and one director.

Five directors served during the year and aggregate directors’ remuneration totalled €463,162.

The pre-tax profit last year takes account of net non-cash depreciation costs of €8.82 million and non-cash amortisation costs of €1.42 million.

The loss also takes account of operating lease costs of €1.56 million and a foreign exchange gain of €3.38 million.

On June 28 last, the company had shareholder funds of €168.38 million, that included accumulated profits of €124.59 million.

The company’s cash funds increased from €11.6 million to €12.38 million.