Bewley profits up despite difficulties

CATERING group Campbell Bewley has reported a rise in pre-tax profits for 2002.

The privately held company said that pre-tax profits for 2002 rose from €4.9m to €5.6m despite a challenging worldwide economic environment.

Chief executive John Cahill said 2002 was a difficult year with increases in energy costs, high street rents and insurance premiums. Turnover for the year was down slightly at €134.5m.

Mr Cahill added: "In line with the general economic situation, the group addressed its cost bases decisively during the year in order to enhance competitiveness. Arising from this process, the group established autonomous operating companies in key markets while also streamlining the overall administration of the business.

"The leasehold interest at the Mary Street [Dublin] premises was sold at commercial rates and an overall review was initiated to enhance café operations."

Mr Cahill said that the company's operations in the US had an excellent year. "The roll-out of units under our Java City licensed branded programme in conjunction with our joint venture partner, Aramark Corporation, continued strongly."

Bewley's Dublin-based coffee roasting, tea blending and distribution operations had a strong year in spite of lower levels of economic activity and a decline in tourism. It said substantial investments made in new production technologies and facilities are yielding significant results.

Campbell Bewleys also said yesterday that it had signed a five-year contract with Delta Airlines to supply speciality coffee to its passengers on all US domestic and international flights.

It will also expand its franchised cafe operations in South Korea, in addition to six outlets already operating in Seoul.

The company has also initiated a share buy-back scheme from staff who were gifted shares in 1998 and from staff who participated since then in the group's employee share ownership scheme. The buy-back will benefit about 500 current and former employees to a maximum of 2,000 shares per owner at a price of €4.90 per share over €2,000 per worker.