Avoca owner Aramark sees staff numbers fall sharply

Staff numbers reduced by almost 2,000 during the Covid-19 pandemic, new accounts show

Aramark acquired Avoca in 2015.

Staff numbers at the owner of one of Ireland’s best-known retail brands, Avoca, reduced by almost 2,000 during the pandemic.

New accounts show that over 2021 and 2020, numbers employed by the US-owned Aramark Ireland Holdings Ltd reduced by 1,952 from 5,240 prior to the pandemic to 3,288 at the end of October last.

The number of jobs lost in the 12 months to the end of October last year totalled 1,299 and this followed a decline in headcount of 653 in the prior year.

The new accounts show pre-tax losses for 2021 narrowed by 64%, from €59.89m to €21.62m.

The decline in pre-tax losses came as revenues reduced by €39.43m, or 16.5%, from €238.2m to €198.76m.

During the year, the business received Government wage subsidy scheme supports of €27.4m and this followed €15.8m received under the same heading in 2020 — a total of €43.2m across the two years.

The group’s redundancy costs last year totalled €4.4m and this followed redundancy costs of €1.87m in 2020.

With the economy fully re-opened in the current year, numbers employed in the group will have rebounded.

The accounts show Aramark’s Food Service business was hardest hit during the pandemic, with revenues declining by 31% from €111.22m to €76.52m, while the decline in retail revenues was 10.5%, from €58.06m to €51.95m.

Facilities management revenues increased marginally from €58.14m to €59.77m, while property management declined slightly from €10.79m to €10.54m.

Ninety-one per cent, or €181.32m, of revenues were generated in Ireland, with the remaining €17.4m recorded in Britain and Northern Ireland.

The directors said “the business has been significantly impacted by Covid-19, resulting in the closure of several client sites and a reduction in activity levels in many of those sites remaining open.” 

The directors further said the business “has maintained a strong focus on cash-generation and this was achieved mainly through contract renegotiations to reflect the difficult trading environment, continued discipline in terms of costs and by availing of Government support schemes”.

They said “these schemes were vital to our business”.

The group’s earnings last year before interest, taxation, depreciation, amortisation and intangible impairment before one time restructuring and related costs amounted to a loss of €1.94m compared to a loss of €10.7m in 2020.

Directors’ pay increased from €912,000 to €1.006m, made up of emoluments of €903,000 and €103,000 in pension contributions.

At the end of October last, the group’s shareholder funds stood at €75.64m. The group’s cash funds reduced from €31.66m to €13.3m.

Globally in 2021, the New York Stock Exchange listed Aramark recorded revenues of $12.09bn — a drop of 6% on the revenues of $12.8bn in 2020.