Pharmacy chain sees profits double

Pre-tax profits at Irish-owned pharmacy chain, Sam McCauley last year more than doubled to €4.23m in spite of revenues remaining flat for the year.

Newly filed accounts for the Co Wexford group — which operates 28 pharmacies across the country, employing over 570 staff — show that the firm secured the 123% increase in profits as revenues dipped from €77.9m to €77.1m.

The chief factor behind the increase in profit, in the year to the end of September, was the group recording a sharp decline in property write-downs — going from €3.16m in 2012 to €671,070 last year. The firm also last year paid a €1m dividend to its shareholders, following on from a similar pay-out the previous year.

The group last year reduced its overall bank debt from €19.99m to €16.77m and — according to the directors’ report within the accounts — “the group continued its strategy of consolidation and paying down debt in tandem with prudent expansion”.

The firm is over 40 years in business and has a strong presence in counties Carlow, Cavan, Cork, Dublin, Kerry, Kilkenny, Tipperary, Waterford, Wexford and Wicklow.

At the end of September last, the group had shareholder funds totalling €31m that included accumulated profits of €18.59m. The firm’s cash pile last year increased from €5.33m to €7.63m. The figures also show that the group’s operating profit reduced by 5% to €5.48m. The firm’s cost of sales last year reduced from €49.34m to €44.76m and this was offset by an increase in administrative expenses from €24.9m to €27.15m

Numbers employed by the group last year increased from 569 to 579 with 509 in retail and distribution and an additional 10 in administration.

Staff costs increased from €12.96m to €14.12m, while remuneration to directors declined from €1m to €881,134.