Revenues soar to €85m at Sodexo's Irish arm
REVENUES soared at the Irish arm of Sodexo to €85m last year but increased staff costs hit profits at the company.
New accounts show that a €3.7m jump in staff costs at Sodexo Ireland Ltd in the 12 months to the end of August last year contributed to pre-tax profits dropping marginally to €2.69m.
The accounts filed to the Companies Office show that the numbers employed by the firm increased from 1,607 to 1,710 as staff costs totalled €43.7m.
Revenues soared by 10pc, from €77.22m to €85m.
Sodexo Ireland counts Irish international soccer star Stephanie Roche as a company health and well-being ambassador. The accounts state that no dividend was paid.
Emoluments for directors increased from €258,000 to €276,000. The figure includes €52,000 in pension contributions. Each day, the firm serves 90,000 people across the country and spent €19m on local Irish foods in 2016.
At the end of August, there was a shareholders' deficit of €1.7m, while the cash pile increased from €8.1m to €9.84m.
The shareholders' deficit arose chiefly from an actuarial €5.6m loss on the pension scheme in 2016.
The directors said that the loss on the pension scheme was driven by the increase in the liability obligation valuation.
The cost of sales increased from €67.85m to €75.15m, while administrative expenses rose from €6.28m to €7m.
The company recorded a 6.7pc drop in operating profits, down from €3.09m to €2.88m.
Net interest payable and other finance charges totalling €188,000 reduced profits to €2.69m.
The accounts show that the French-owned firm recorded a post-tax profit of €2.3m after corporation tax of €381,000 had been paid.