Pre-tax profits at airport catering operator Gate Gourmet declined by 48% to €1.16m in 2023 due mainly to the cessation of cost saving initiatives introduced during the Covid-19 pandemic.
New accounts filed by Gate Gourmet Ireland Ltd show that pre-tax profits at the Irish arm of the Swiss headquartered firm declined as revenues increased by 17% from €15.69m to €18.34m.
The directors state that revenues increased due to organic growth.
Revenues were boosted as passenger numbers increased to 31.9 million at Dublin airport in 2023.
The directors state that the company has successfully navigated the challenges posed by the Covid-19 pandemic "and has maintained strong performance in 2023".
Theys state that the decline in pre-tax profits "was primarily due to the resumption of normal administrative costs after the cessation of cost saving strategies implemented during the Covid-19 pandemic".
They state that despite the decrease in net profit compared to the prior year, the net profit generated is similar to pre-pandemic levels.
Numbers employed increased by two to 86 as staff costs rose from €3.7m to €4m.
On the risks facing the business, the directors point to staff shortages stating that the industry is currently facing acute staff shortages.
"To address this challenge, we have implemented several measures, including hiring more agency staff, improving staff flexibility and enhancing employee engagement," the directors said.
They state that "we are continually monitoring the situation and will take necessary steps to ensure that we have the workforce required to meet our customers demands effectively".
On the impact of inflation, the directors state that "like all industries, the company has been impacted by high inflation on both food products and utilities. Our customer contracts are such that product costs are passed onto customers. On utility price increases, we are continually working to pass this incremental cost to customers."
The company's operating profits declined by 58% from €2.09m to €886,581 and the company benefited from net interest payments of €277,244.
The company also received other operating income of €724,853 that was mainly made up of €652,443 in rental income. The profits take account of non-cash depreciation costs of €532,223 and lease costs of €1.13m.
It recorded a post tax profit of €928,894 in 2023 after incurring a corporation tax charge of €234,931.
At the end of December 2023, the company's shareholder funds totalled €8.07m that included accumulated profits of €3.5m and called up share capital of €4.5m.
Cash funds increased from €517,745 to €1.77m.
Reporting by Gordon Deegan
