Operating profit at Smyth Toys' Irish operations increased by 23%

This was driven by a large increase in service provision to other group companies 

The company generated turnover of €296.6m during 2024, a year-on-year increase of €9.5m.

The Irish operations of retailer Smyths Toys reported a 23% increase in operating profit during its 2024 financial year, driven by an increase in the provision of services to group companies, the latest financial statements show.

This comes after the company’s UK operations posted revenue of £953.5m (€1.09bn) during 2024, an increase of 2% year-on-year. Directors of the company said this increase was primarily due to an increase in footfall in the stores, and the addition of seven new stores during the year.

According to Smyths Toys Ltd, which operates stores in Ireland as well as the provision of services to its sister company, it generated turnover of €296.6m during 2024, a year-on-year increase of €9.5m.

“This increase is primarily driven by an increase in provision of services to group companies,” the company said in its financial statement.

The sale of goods generated just over €282m in turnover, while services to other group companies generated €14.4m — up from €1.3m the year prior.

This also drove the company's operating profit to increase by 23%, by €1.4m to €7.2m. After tax, the company reported a profit of just under €6m.

“Based on these results, the directors are pleased with the result, particularly given the current economic climate and the competitive marketplace,” the company said.

The Galway-based company paid out €8m in dividends during the year, which was settled through the intercompany account.

The company had net assets of €4.6m at the end of the year, compared to €6.7m in 2023.

During the year, the company invested €31m in its existing stores and logistic facilities. It did not open any additional stores in 2024.

The average number of employees the company had in 2024 stood at 753, with total staff costs reaching just under €20m.

The Smyths Toys retail business today stretches to 311 stores across the island of Ireland, the UK, Germany, France, Austria, Holland and Switzerland, with 124 of those stores in England, Scotland and Wales.

Last month, Smyth Toys UK Ltd posted pre-tax profits of £18.5m, up from €18.4m the year prior, on the back of strong sales in Lego, Nerf Guns, Paw Patrol, Disney’s Lilo and Stitch and Despicable Me 4’s The Ultimate Fart Blaster.

Its gross margins increased from 17.6% to 18.6% in 2024 due to increased sales and cost reductions.

The business paid out a dividend of £20m.

Numbers employed by Smyths Toys UK Ltd increased by 177 from 3,386 to 3,563.

The size of the overall business across the UK, Ireland and Europe has increased sharply in recent years with the expansion into France following the acquisition of PicWic Toys in France in July 2022.

In the past year, Smyths Toys has expanded its presence in France to 52 stores, and it also operates four stores in Holland.

The firm’s German business has also expanded in the past year, where it operates 76 stores. The company also has a presence in Austria where it operates 16 stores, and 11 in Switzerland.