McDonagh delight at record-breaking year for Supermac's
Supermac's supremo Pat McDonagh enjoyed a 'snack box bonanza' last year, with pre-tax profits at his fast-food business doubling to €14m.
The group broke the €100m barrier in revenues for the first time as income soared by 24.5pc to €116m in a record year.
"We are delighted with the results across the board for the business last year and the challenge now will be to keep it going," he said. Diversification paid off, with the group's four hotels contributing to the soaring revenues.
Expansion saw another 304 directly employed, with numbers increasing from 1,032 to 1,336. Mr McDonagh said there was probably that number again, if not more, employed in franchised operations.
The group opened its 106th Supermac's outlet in Charlestown, Co Mayo last Friday and Mr McDonagh said that the group plans to open another four or five outlets next year.
Mr McDonagh said the group's fast-food revenues were really helped by the fresh Irish beef burger and the fresh Irish chicken breast products.
"Those have really taken off - so much so that suppliers are being tested to keep up with demand," he said. "That is great for Irish farming. It is a win-win for everyone."
Underlining the expansion of the group, the business last year paid €45m to acquire assets and investments and this followed a pay-out of €21.5m under the same heading in 2014.
The firm's accumulated profits last year increased to €71m while the book value of the property portfolio nearly doubled - from €44m to €86m.
As a result of the expansion, staff costs increased by 25pc going from €21.73m to €27.19m.
The profit last year takes account of non-cash depreciation costs of €3.4m. The accounts also show that last year Mr McDonagh and his wife, Una completed a €26.9m sale of property to the Supermac's business, with the two owed €10.38m from the deal at the end of the year.
At the same time, Mr McDonagh ploughed €8.7m of his own money back in, making it €9.4m he was owed at the end of December last. He said he did so because it is "important to have the funds there to grow it to the next level".