Friday 23 February 2018

Itsa good year as Domini Kemp firm profits hit €200k

Accumulated losses at Domini Kemp’s Itsa Bagel increased by €58,635, going from €127,672 to €186,307
Accumulated losses at Domini Kemp’s Itsa Bagel increased by €58,635, going from €127,672 to €186,307

Gordon Deegan

The network of food businesses, including Itsa outlets, operated by celebrity food writer, Domini Kemp recorded operating profits "well in excess of €200,000" last year.

"We've made serious progress since 2013, which was an incredibly tough year," Ms Kemp said in an interview yesterday. "We're happy with how the business has transformed and are very excited about the new brands and health range we have created."

"We are feeling really positive about this year. We've made tough decisions and have done the heavy lifting over the past four years. We're well set for a busy and profitable year," she added.

Ms Kemp was commenting on new accounts for the Itsa Bagel firm which show that accumulated losses at the company last year increased by €58,635 going from €127,672 to €186,307 in the year to the end of February 29 last.

However, the losses take account of non-cash depreciation costs of €257,544 and interest payments. "Expansion costs and depreciation are the main reason for the small loss," Ms Kemp said.

"Business is continuing to change as we move away from the original Itsa brand and develop Alchemy Juice Co, Hatch & Sons and Joe's coffee."

The firm employs around 100 and currently operates 14 outlets. Staff costs last year totalled €2.55m.

The firm also operates Joe's Coffee outlets at Arnotts and Montague Street in Dublin and in Kildare village.

The group also operates Alchemy Juice Co on Leeson Street - the original location was closed last year due to Bt2 selling its Grafton Street premises to Victoria's Secret.

"Alchemy BT2 was trading very well up until the sale of the building," Ms Kemp said.

The group has Itsa outlets on Exchequer Street, Arnotts, Dun Laoghaire, Sandyford and Harvey Nichols and also operates museum cafes at the Irish Museum of Modern Art (IMMA), the National Gallery of Ireland and the Hugh Lane gallery.

The group also operates Hatch & Sons at the Little Museum of Dublin, with a second one being planned to take over in the Hugh Lane gallery and the Table Restaurant at Brown Thomas Cork.

The business also provides feast catering and events at the Powerscourt Estate, Office of Public Works (OPW) locations and private venues.

Ms Kemp said that operating profit before depreciation and interest was well in excess of €200,000.

On the current performance of the business in the current year, Ms Kemp said: "Revenues have increased and returned to profit in the year to date."

Business has been boosted in the current year with two new wholesale contracts in summer 2016 while the business is operating two food trucks in Kildare Village.

"We closed branches in Ranelagh and Malahide which were under-performing," Ms Kemp said. "We have created new brands and investment was required for the new premises and both brands - Joe's and Alchemy."

She said that cost of sales increased on 2015 due to the rising costs of product, while there was a slight decrease in payroll.

Ms Kemp said: "Our gross profit has increased despite increasing costs for insurance, rents, and electricity."

The amount owed by Itsa Bagel to Domini Kemp stood at €156,004 at the end of February last.

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