DUBLIN: Catering and facilities management giant Aramark recorded a 4.8 per cent rise in operating profit to €6.17 million in its Irish operations in the year to the end of September 2015, the latest accounts for the company show.
Revenue at Aramark Ireland Holdings Limited and its subsidiaries grew 1.8 per cent to €237.9 million over the period. The company, which is led in Ireland by chief executive Donal O’Brien, said revenue increases from its facilities management activities had offset decreases in food services and property management.
However, its gross margin decreased to 14.7 per cent, down from 15.2 per cent, with the company citing a “continued depressed economic climate and cost reductions sought by clients combined with competitive pressures”.
Aramark, which provides food, property, energy and facilities services to companies throughout Ireland, said its contract retention rate remained at a high 95 per cent despite the competitive climate.
No dividends were paid. Interest charges on its borrowings meant its pretax profit came in at the lower total of €2.1 million, while its net profit was just €590,000. This compared to a net loss of €1.77 million in the previous 12-month period.
The bulk of its revenues – some €192.5 million – come from the Republic of Ireland. Food services accounted for €131 million of the total revenue, down from €141.8 million in the previous period, while facilities management turnover rose from €82.7 million to €98 million. Property management revenues declined from €9 million to €8.8 million.
The US company acquired Avoca Handweavers last year and last week it revealed that Avoca had generated sales of about $16 million in the second quarter of this year. “The acquisition of Avoca in 2015 was an important strategic investment for Aramark to add innovative new platforms to serve consumers and distinguish our business,” the company said.
