Supermac's hits record year with Obama help
The Obama Plaza and the Galway Plaza "contributed greatly" to the Supermac's group enjoying record profits and revenues last year.
That is according to managing director Pat McDonagh who was commenting yesterday on new accounts showing that pre-tax profits at Supermac's (Holdings) Ltd last year increased by 37pc to €21.88m.
Revenues surged by 15pc from €136.8m to €157.4m.
Numbers directly employed by the group last year rose from 1,533 to 1,621. Staff costs rose from €32.12m to €34.7m.
Mr McDonagh said that the group's two motorway plazas "contributed greatly to the increase in turnover and profits last year".
He said: "The Obama plaza is going pretty well and the Galway plaza is performing strongly as well." Mr McDonagh has two further motorway plazas - at Ennis and Portaloise - in the planning process.
Mr McDonagh said that he was "very happy" with how the business performed last year.
The number of Supermac's outlets now totals 112 following new openings in Cork (three), Birr, Naas, Balbriggan and Donegal this year.
He said that between franchised and owner-operated outlets, there are now 3,000 people employed at outlets.
Mr McDonagh said revenues from outlets also increased substantially in 2017.
Arising from the further expansion of the group this year, Mr McDonagh said that "I would be disappointed if revenues don't top €170m." But he said the business is facing into an uncertain 2019 as "there will be challenges right across the board." He said that this was due to the Vat increase along with the increase in the price of food, labour costs and utility costs.
Mr McDonagh said that as a result of last summer's drought, the price of potato chips has increased by 25pc and he said that this will eat in to profits.
Mr McDonagh said that Supermac's best selling products are Chicken Breast Sandwich and 5 Oz burger.
Mr McDonagh said he is considering the business self-insuring itself. He said that the group's insurance premium pay out is €1m per annum.
The group recorded post-tax profits of €18.47m after paying corporation tax of €3.4m. Shareholders funds last year totalled €103.2m and the cash pile rose from €10m to €15.9m.
The profit takes account of non-cash depreciation costs of €4m. Staff costs last year rose from €32.12m to €34.7m.
The accounts disclose that at the start of the year, the business owed Mr McDonagh €10.1m and €1.6m was repaid during the year leaving a balance of €8.5m owed to Mr McDonagh at year end.
The business also paid €789,104 to Mr McDonagh concerning business premises leased from the Galway man.