Bewley’s brews up €1.6m profit in spite of tough year

BEWLEY’S cafe on Grafton Street continued to perform well last year despite lower footfall and consumer spending.

Owners, the Campbell Bewley Group, recorded an increase in pre-tax profit from €1.5 million in 2008 to €1.6m last year on a group level.

However, the company said the financial performance is undermined by an excessive rent which was set during the “unsustainable property bubble caused by easy access to cheap credit”.

“It is essential that businesses pay rents at market levels, no more no less and we fully support Government intervention to resolve the current inequalities in this area,” chairwoman Siofra Campbell said.

On a group level Campbell Bewley Group Limited reported a 13% drop in turnover from €82.7m to €72m. The directors said they regard the results as a satisfactory performance in the context of the “challenging economic and business conditions prevailing during 2009”.

The company said it responded decisively to the deteriorating business environment by ensuring its cost base remained competitive, while at the same time working closely with its customers to enable them to drive continuing profits from their hot beverage offerings.

Bewley’s is the largest importer, roaster and supplier of ground coffee to the Irish market.

The company said its Dublin-based coffee roasting and food service distribution operations delivered a satisfactory result in 2009. It said it actively managed their cost base to ensure they remained competitive to international benchmarks.

The company said trading conditions remained challenging in the early days of 2010 but said they expected some improvement in the business environment to emerge as the year progressed.

“Our focus remains on maintaining a competitive cost base while continuing to invest in the resources required to profitably develop the hot beverage businesses of our customers.”

The company said it is also continuing to pro-actively seek out development opportunities and said its positive cash position places it in a strong position to take advantage of any opportunities that present themselves.

“Accordingly we remain confident that the group is well placed to achieve solid growth in the future,” Ms Campbell said.