Starbucks Ireland in the black with €1.1m profit
Published 15/06/2016 | 02:30
Pre-tax profits at the main Irish arm of coffee giant Starbucks halved to €1.14m last year.
Abridged accounts just filed by Ritea Ltd - formerly Starbucks Coffee Company (Ireland) Ltd - show that the firm recorded the drop in pre-tax profits in spite of gross profits increasing by 32pc to €2.18m in the 12 months to the end of July last.
The prior period when a gross profit figure of €1.48m was recorded was for 10 months.
The comparatively high pre-tax profits of 2014 of €2.3m arose chiefly from an exceptional gain of €1.27m.
The Starbucks operation in Ireland is licensed to Dublin-based Entertainment Enterprises Group, which is run by Colum and Ciaran Butler.
The Starbucks' operation has enjoyed exponential growth under the Butlers' control with the number of coffee outlets in the greater Dublin area now standing at more than 50.
The first Starbucks in Ireland opened at Dundrum Town centre in south Dublin back in 2005.
The Starbucks franchise has also expanded outside Dublin in recent times and now operates two outlets in Limerick and six in Cork.
The business also has outlets in Kildare Village, Athlone, Dundalk and Drogheda.
The US-based coffee giant's decision to licence out its business in Ireland followed the firm sustaining successive losses in 2010, 2009, 2008 and 2007.
The firm achieved its operating profits last year after incurring non-cash depreciation costs of €464,379.
The profit last year reduced the firm's accumulated losses from €7.5m to €6.4m.
The firm's shareholder funds increased from €7.9m to €9m.