Operating profits at Milano pizza firm fall by 73.5% to €965,000 last year

Diners enjoying a pizza at Milano. The company has 18 outlets in Ireland.

Operating profits at the operator of the Milano chain of restaurants in Ireland plummeted by 73.5% last year to €965,000.

New accounts filed by Agenbite Ltd show that the company’s operating profits reduced sharply as revenues dipped by 5% from €26.9m to €25.4m in the year to December 29 last.

The directors state that revenues declined "as a result of a challenging macro-environment".

Operating profits fell to €965,000 from €3.65m in 2023. The company recorded a pre-tax loss of €144,000 due to net finance costs of €1.1m.

The pre-tax loss of €144,000 in 2024 followed a pre-tax profit of €2.34m in 2023.

The business recorded an operating profit of €834,000 before adjusting items and a net impairment reversal of €131,000 resulted in the final operating profit of €965,000.

Agenbite operates 18 Milano restaurants in Ireland and the directors state that “given the challenging trading environment experienced in the market, as well as the sector wide cost headwinds, the directors were satisfied with the performance against the budget”.

The profit takes account of non-cash depreciation costs of €3.08m.

On the future developments, the directors state that “our strategy remains focused on our iconic brand and business, reaching full potential in existing markets across our restaurant and delivery channels”.

On the market risks facing the business, the directors state that “in Ireland, the key risks that our business face are the high level of competition, coupled with the very low barriers to entry”.

Staff numbers at the Pizza Express-owned company last year declined from 516 to 481 as staff costs reduced from €10.54m to €10.47m. Pay to directors reduced from €1.12m to €814,000 that included €19,000 in pension contributions.

Milano operates two restaurants in Cork and Limerick, 10 in Dublin along with outlets in Killarney, Newbridge, Galway, and Ennis.