'Snackbox millions': Supermacs group revenues top €300m for first time as pension payout cuts profits

A significant factor behind the decrease in profits was the group contributing €2m in pension costs for co-owners and directors of the business, Pat McDonagh (pictured) and Una McDonagh, who each hold a 50% share of the business. File photo

Revenues at Pat McDonagh’s expanding Supermac’s group last year topped €300m for the first time in another record-breaking year for the business.

New consolidated accounts filed by Supermac’s (Holdings) Ltd show that the group’s pre-tax profits declined by 9.5% to €39.44m. The group’s profits declined despite revenues increasing by 7% from €294.37m to a record €314.1m.

A significant factor behind the decrease in profits was the group contributing €2m in pension costs for co-owners and directors of the business, Pat McDonagh and Una McDonagh, who each hold a 50% share of the business.

This resulted in directors’ pay increasing from €152,425 in 2023 to €2.15m last year made up of the pension costs of €2m and remuneration of €152,425. The €2m pension costs for the directors were part of an overall €7m in pension costs under staff outlays across the group.

The €7m in pension costs resulted in staff costs increasing by 21% from €57.1m to €68.89m last year made up of €56.19m in salaries, €7m in pension costs and €5.69m in social welfare payments.

Numbers employed last year decreased by 69 from 2,527 to 2,458, made up of 2,279 in operating staff and 179 in management and administration.

The group expanded earlier this month to open its new €20m Banner plaza outside Ennis on the M18 linking Limerick to Galway as part of its network of motorway service stops that includes the Obama Plaza off the M7 near Moneygall.

The group recorded a post-tax profit of €32.95m in 2024 after incurring a corporation tax charge of €6.48m. In their directors' report, Pat and Una McDonagh state that “turnover continues to be strong, reflecting the strong demand for the goods and services provided by the group”.

The McDonaghs said: “Gross profit margins continue to perform well and whilst the group continues to have to deal with escalating costs the directors are pleased with the performance in the year.”

Along with the Supermacs chain of restaurants, the group also operates a number of hotels while it is also operates in the property sector. The group generated €3.75m in other operating income last year.

On the risks and uncertainties facing the group, the McDonaghs said “the group operates in a very competitive environment with constant pressures on margins and costs”. They state that it requires "a significant market share to remain profitable”.

The McDonaghs said the group carefully manages costs and margins, and its market share is increasing through sourcing strategic locations while maintaining a focused workforce and a top-class customer experience.

The stellar performance by the group last year further strengthened the group’s balance sheet with accumulated profits of €285.99m at the end of December 2024. The group’s cash funds increased from €111.65m to €139.65m.

The profit takes account of non-cash depreciation costs of €6.5m offset by €428,583 in Government grants received.

At the beginning of last year the group owed Pat McDonagh €4.2m and €2.08m was repaid to Mr McDonagh during 2024 leaving a balance of €2.1m owing at year end.

The group also paid Mr McDonagh €918,043 in respect of property leased to the group. Last year, the group paid out €8.6m to acquire property, plant and equipment and this followed a payout of €8.44m under the same heading in 2023.