Caffe Nero in black with first Irish profit
The directors of Caffe Nero have stated that there are strong growth prospects for the branded coffee market in Ireland after the company returned its first profit here.
New accounts show that the UK-owned Caffe Nero Ireland Ltd recorded pre-tax profits of €562,000 in the 12 months to the end of May last.
This followed the company recording pre-tax losses of €138,000 in 2016.
The company recorded the profit after revenues increased by 71.5pc going from €2.1m to €3.6m.
The company's gross profit more than tripled to €788,000.
The company opened two new outlets here in the past year.
It now has 10 cafes with eight in Dublin and one each in Galway city and Drogheda.
The directors state that the profit for the year arose due to continued growth from stores opened towards the end of the prior year as well as a reduction in startup costs in this new territory.
On the firm's future developments, the directors state that the company expects to continue to open further locations under the Caffe Nero brand.
In addition to the core range of espresso-based coffees, Caffe Nero offers an array of pastries, baked goods, freshly made panini, sandwiches, salads and pastas.
Underlining the firm's expansion plan last year, numbers employed last year increased from 40 to 60 with staff costs increasing from €839,000 to €1.19m.
The accounts show that the firm also incurred €142,000 costs in acquiring property, plant and equipment compared to €1.68m under that heading in 2016.
The profit last year takes account of non-cash depreciation costs of €380,000. The company's operating lease rentals last year totalled €492,000 and this followed a spend of €384,000 under that heading in 2016.
The company's cost of sales increased from €1.8m to €2.8m.
Caffe Nero was founded by Gerry Ford in 1997. It is the largest independent coffee retailer in Europe and last year operated 637 stores in Ireland and the UK, operating in 250 towns and cities.
Last year, Caffe Nero opened 33 new stores in Ireland and the UK and handed back eight outlets to landlords resulting in a net increase of 24 stores.
Globally, Caffe Nero had 822 stores in eight countries and highlighting the growth plans, the company increased its store count by 89 during the year.
Last year, revenues at Caffe Nero increased by 14pc to £313m and it recorded operating profits of £17.69m.