McCauley Pharmacy predicts 'sustainable' earnings as it posts €3.1m loss in Covid year 

Figures released by the company, which is 60% owned by Carlyle Cardinal, show it posted a 2020 loss of €3.1m, which included restructuring costs of €2m, as sales fell 8% to just over €83m. File picture: Denis Minihane

McCauley, one of the largest pharmacy chains in the Republic, remained in the red last year but is now  forecasting a "sustainable" level of earnings in the coming years as it puts the worst of the pandemic behind it.       

Figures released by the company, which is 60% owned by Carlyle Cardinal, show it posted a 2020 loss of €3.1m, which included restructuring costs of €2m, as sales fell 8% to just over €83m. 

For the current financial year, it expects to generate underlying earnings of over €4m and is seeking "significant sustainable growth" for next year. 

McCauley operates 35 chemist shops, mostly along the eastern and southern coasts but also in Kerry, Tipperary, Kilkenny, as well as Cavan, and employs 500 people.   

Last year's deficit is much lower than the €26.2m loss it posted in 2019, while earnings before interest payments, tax and depreciation in the latest year were in surplus by €2.9m, up from €1.7m. 

“McCauley is emerging from the pandemic, financially stable and is ready to leverage opportunities that will arise in the coming years," chief executive Tony McEntee said. Citing the support of stakeholders and "difficult decisions", Mr McEntee said that "specifically, we will see the financial benefit of the 2020 restructuring over the next two years". 

McCauley had previously disclosed "a technical compliance breach with financial covenants on its bank loan facilities" in 2019. "Subsequent to the year-end, in December 2020, the directors successfully renegotiated the group’s bank debt facilities," it had said in its 2019 accounts.  

"In addition, prior to the re-negotiation of bank’s debt facilities, the group also obtained advance deferrals from the bank in respect of capital repayments for the quarters ended 31 March 2020 to 30 September 2020, and also obtained an advance waiver in respect of the requirement to comply with financial covenants for these periods," it had said.