Operating profits at the operator of the Milano chain of restaurants here last year plummeted by 73.5% to €965,000.
New accounts filed by Agenbite Ltd show that the company's operating profits reduced sharply as revenues dipped by 5% from €26.9m to €25.4m in the year to December 29 last.
The directors state that revenues declined "as a result of a challenging macro-environment".
The operating profits of €965,000 follow operating profits of €3.65m in 2023.
The company recorded a pre-tax loss of €144,000 due to net finance costs of €1.1m.
The pre-tax loss of €144,000 in 2024 followed a pre-tax profit of €2.34m in 2023.
The business recorded an operating profit of €834,000 before adjusting items and a net impairment reversal of €131,000 resulted in the final operating profit of €965,000.
Agenbite operates 18 Milano restaurants here and the directors state that "given the challenging trading environment experienced in the market, as well as the sector wide cost headwinds, the directors were satisfied with the performance against the budget".
The profit takes account of non-cash depreciation costs of €3.08m.
On the future developments, the directors state that "our strategy remains focused on our iconic brand and business, reaching full potential in existing markets across our restaurant and delivery channels".
On the market risks facing the business, the directors state that "in Ireland, the key risks that our business face are the high level of competition, coupled with the very low barriers to entry".
On the operational cost increase risks faced by the company, they state that "continued increases in certain key operating costs, such as salaries, rents, business rates, energy and food costs, as well as the impact of ongoing price rises on consumer spending, are all monitored carefully by the board".
Staff numbers at the Pizza Express owned company last year declined from 516 to 481 as staff costs reduced from €10.54m to €10.47m.
Pay to directors reduced from €1.12m to €814,000 that included €19,000 in pension contributions.
Today, Milano operates restaurants at Dundrum, Dawson Street, Haddington Rd, Grand Canal, Temple Bar, Clarion Quay, Liffey Valley, Dun Laoghaire, Blanchardstown and the Swords Pavilion in Dublin along with outlets in Newbridge, Limerick (2), Galway, Cork (2), Ennis and Killarney.
The directors said that no restaurants were opened or closed in 2024.
Accumulated profits at the company at the end of last year totalled €19.48m. The company's cash pile increased from €8.9m to €12.43m.
The company's cost of sales amounted to €18.8m resulting in a gross profit of €6.65m.
Its post tax loss totalled €297,000 after incurring a corporation tax charge of €153,000.
Reporting by Gordon Deegan
