Pre-tax profits up 83% to €29m at Limerick-headquartered Sysco Foods Ireland

Sysco, formerly Pallas Foods, reports that revenues are up by 25% from €459.32m to €574.8m in the 12 months to July 1, 2023

With its head office at Newcastle West in Co Limerick, Sysco Foods supplies food to thousands of hotels, shops, restaurants, and pubs, along with healthcare and educational facilities.

Pre-tax profits at the Irish arm of US food giant, Sysco Foods last year increased to €29.04m.

New accounts for the Co Limerick based business — formerly Pallas Foods — show that Sysco Foods Ireland UC’s pre-tax profits went up by 83% as revenues increased by 25% or €114.48m from €459.32m to €574.8m in the 12 months to July 1, 2023.

The business, which has its head office at Newcastle West, Co Limerick, supplies food to thousands of hotels, shops, restaurants, and pubs along with healthcare and educational facilities.

The business operates from a central Dublin location and seven regional centres and has continued to expand with the post year end purchase of Ready Chef Ltd.

Revenues up by 52%

The most recent accounts filed by Ready Chef Ltd show revenues increased by 52% to €18.9m in 2022 as the Glasnevin-based manufacturer and distributor of fruit and vegetables recorded pre-tax profits of €411,021. In 2022, the company employed 85.

At Sysco Foods Ireland, numbers employed last year increased by 132 from 1,365 to 1,497 and staff costs rose from €44.28m to €59.74m.

The directors state that in achieving the revenues, the company focused on sales with existing customers through its range of products and quality of service.

Gross margin rises to 23%

The directors state that the gross margin increased by 1% to 23% for the period and this was achieved through a rigid cost management process, strong relationships with company suppliers, and a change in the product mix.

The strong profits of 2023 and 2022 at Sysco Foods follow covid-19 related pre-tax losses of €8.8m in 2021 and €24.17m in 2020.

Operating profits last year increased by 71% from €19.43m to €33.33m and net interest payments of €4.29m reducing profits to a pre-tax profit of €29.04m.

Post tax profits of €24.7m

The business recorded post-tax profits of €24.7m after incurring a corporation tax charge of €4.3m.

The accounts show that staff numbers were made up of 1,276 in sales and distribution, 220 in administration, and one director.

Four directors served during the year and aggregate directors’ remuneration totalled €481,783.

The pre-tax profit last year takes account of net non-cash depreciation costs of €4.77m and non-cash amortisation costs of €1.59m. The loss also takes account of operating lease costs of €1.93m.

The group received zero Government subsidy last year after receiving €14.5m under that heading in the prior year.

On July 1, 2023, the company had shareholder funds of €125.29m that included accumulated profits of €81.49m.

The company’s cash funds dipped marginally from €17.6m to €17.5m.