Bewley’s records profits of €1.5m

BEWLEY’S cafe on Grafton Street increased sales by 5% in 2008 in what owners said was a satisfactory year despite declining footfalls on the street.

The owners of the cafe, which controversially closed four years ago, the Campbell Bewley Group, recorded an increase in pre-tax profit to €1.5 million in 2008 from €781,000 in the previous year.

According to the company’s accounts, the improvement in profit reflects reduced property-related costs and strong performances in the company’s core Irish and US foodservice operations.

Group turnover was down from €88.2m to €82.7m. Turnover in Ireland was €41.6m and just over €2m in Britain. The cafes accounted for €27.2m of the turnover and the wholesale business accounted for €55.5m. Staff numbers dropped by 107 in the year to 901. Shareholders funds at the end of the year were just over €10m from €11.7m in 2007.

The accounts read: “Our Dublin-based coffee roasting and foodservice distribution operations delivered a strong trading performance in 2008, despite reducing growth rates experienced towards the end of the year.

“While the current economic downturn will bring its obvious challenges we believe it will also present attractive opportunities to further develop our leadership position in the Irish market as foodservice operators seek out supply partners who can help them to profitably develop their hot beverage operations,” the accounts read.

The company said it invested heavily in its coffee and tea retail (grocery) operations in 2008.

“We also introduced a new range of speciality teas to the market during the year, enabling us to participate in this strongly growing sector,” it said.

It said its Java City coffee roasting and foodservice distribution operations in Sacramento showed an improved performance during the year.