Sysco Foods Ireland sees profits increase by 19% as revenues pass €650m

The Limerick-based business - formerly Pallas Foods - supplies food to thousands of hotels, shops, restaurants, and pubs in Ireland, along with healthcare and educational facilities

Sysco Ireland rebranded trucks

Pre-tax profits at the Irish arm of US food giant, Sysco Foods last year increased by 19% to €28.24m.

New accounts for the Co Limerick based business - formerly Pallas Foods - show that Sysco Foods Ireland UC’s pre-tax profits rose as revenues increased by 8% from €603.23m to €651.64m in the 12 months to the end of June 28 last.

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

The business operates from a central Dublin location and seven regional centres and also sells, markets, and distributes food products to lodging establishments and other customers who prepare meals away from home in Ireland.

The group’s family of products also includes equipment and supplies for the foodservice and hospitality industries.

The pre-tax profits of €28.24m follow pre-tax profit of €23.76m in the prior year. At Sysco Foods Ireland, numbers employed last year increased by 57 from 1,532 to 1,589, as staff costs rose from €63.49m to €66.66m.

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. The directors said that the gross margin decreased by 1% to 23% for the period “and the result has been achieved through a rigid cost management process, strong relationships with company suppliers, and changes in product mix”.

Recovery after pandemic

The business has recorded strong profits over the last four years following pandemic-related pre-tax losses of €8.8m in 2021 and €24.17m in 2020

Operating profits last year increased by 15% from €27.53m to €31.63m and net interest payments of €3.39m reduced profits to a pre-tax profit of €28.24m.

The business recorded post-tax profits of €24.1m after incurring a corporation tax charge of €4.14m.

The accounts show that staff numbers were made up of 1,300 in sales and distribution, 288 in administration, and one director.

Five directors served during the year and aggregate directors’ remuneration totalled €463,162.

The pre-tax profit last year takes account of net non-cash depreciation costs of €8.82m and non-cash amortisation costs of €1.42m.

The loss also takes account of operating lease costs of €1.56m and a foreign exchange gain of €3.38m.

On June 28 last, the company had shareholder funds of €168.38m that included accumulated profits of €124.59m. The company’s cash funds increased from €11.6m to €12.38m.