Successful negotiations with landlords on reducing rents coupled with revenue growth for the Irish arm of luxury brand, Swarovski is leading the firm down a path of more sustained profitability.
That is according to new accounts just lodged by Swarovski Ireland Ltd which show that the firm returned to profit last year on the back of better sales margins.
The new accounts lodged show that the Swiss-owned fashion jewellery and crystal firm recorded pre-tax profits of €25,000 in the 12 months to the end of December last and this followed a €243,000 pre-tax loss in 2013, a positive swing of €268,000.
The directors state that after a slow start in 2014, trading performance strengthened as the year progressed and ended with a very strong run into Christmas.
The strong Christmas period wasn’t enough to prevent revenues dipping marginally by 2% from €3.5m to €3.45m last year.
The directors’ report states: “With a continuing trend towards growth in turnover and following successful negotiations with landlords to reduce rents to come more in line with market conditions that will have a full year effect in 2015, the directors believe that the company will continue on a journey to a more sustained return to profitability.”
The spend on operating lease rentals last year increased marginally from €917,000 to €926,000 while the profit for the year takes into account non-cash depreciation costs of €90,000.
Numbers employed at the firm last year rose by one to 33 with staff costs declining from €655,000 to €608,000.
Shareholder funds at the end of last year totalled €1.59m.
The firm’s cash pile last year increased from €805,000 to €916,000.
Last year, the firm recorded operating profits of €35,000 and interest costs of €10,000 reduced profits.
The firm last year sharply reduced its cost of sales from €1.3m to €896,000 while its distribution and administration costs went up.
The firm’s distribution costs increased from €2.2m to €2.55m while its administration costs increased from €174,000 to €191,000.
Swarovski’s products are sold in approximately 170 countries and production locations are in Austria, China, Czech Republic, India, Liechtenstein, Thailand, Vietnam, and the US.
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