Expansion costs at the Irish arm of health food retailer Holland & Barrett last year resulted in pre-tax profits falling by 19.5% to €6m.
The retailer last year increased the number of its Irish stores from 47 to 50. This contributed to revenues increasing by 5% to €30.9m.
Latest figures show that the Irish subsidiary’s pre-tax profits decreased by €1.46m from €7.47m to €6m in the 12 months to the end of September.
In the company’s recently filed accounts, the directors’ said that both the level of business and the year-end financial position remain satisfactory.
Numbers employed at the firm last year increased from 231 to 236 with staff costs increasing from €4.87m to €5.23m.
Holland & Barrett is a leading retailer of vitamins, minerals, and herbal supplements and the company’s accumulated profits in its most recent financial year totalled €27.47m.
The Irish subsidiary’s cash pile increased marginally from €756,000 to €793,000.
The accounts show that the firm recorded a gross profit of €19.99m after incurring cost of sales amounting to €10.92m.
Distribution costs of €13.4m and administrative expenses of €715,000 resulted in an operating profit of €5.862m for the year.
Interest receivable of €151,000 resulted in the pre-tax profits of €6m.
The company recorded a post-tax profit of €5.16m following a corporation tax bill of €848,000.
In their report, the directors of the Irish operations also said that the risks and uncertainties affecting the company are considered to relate to competition from both national and independent retailers, employee retention, and produce availability.
The profit last year takes account of non-cash depreciation costs of €951,000 with the amount spent on operating leases increasing from €4m to €4.13m in the period.
Meanwhile, director’s pay last year marginally increased from €105,000 to €112,000 — made up of €105,000 in emoluments and €7,000 in pension contributions.
The Irish company is a subsidiary of the UK-based Holland & Barrett Holdings Ltd while the business is ultimately controlled by US private equity house Carlyle Group.
Holland & Barrett operates around 1,000 shops across the UK, Ireland, Spain, Malta, Cyprus, Gibraltar, Singapore, China, and the UAE.
It also operates in the Netherlands and Belgium under the De Tuinen and Essenza brands.
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