Admin expenses see profits at distributor Sysco Foods Ireland dip more than 23%

Irish food service distributor Sysco Foods Ireland saw its profits dip by more than 23 per cent last year as administrative expenses increased.

Sysco sells, markets and distributes food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home.

Its products in Ireland also include equipment and supplies for the food service and hospitality industries.

The company’s latest set of accounts filed with the Companies Registration Office, which cover the financial period from July 2nd, 2023, to June 29th, 2024, show it made a profit before tax of €23.8 million, which was down from just over €29 million the year before.

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The company’s profit after tax was just under €19 million, which was down 23 per cent from €24.7 million the year before. The directors did not recommend the payment of a dividend.

The company’s turnover increased from €574.8 million to €603.2 million. Cost of sales also increased from €436.1 million to €459.7 million, while administrative expenses rose 44 per cent from €22.6 million to €32.7 million.

The company’s gross margin was 24 per cent, which it said was “a critical factor” in the company’s performance. It was achieved through a “rigid cost management process, strong relationships with company suppliers and changes in product mix”.

The company, which is based in Co Limerick, employed 1,532 people in the year, which was up from 1,497. It spent €63.5 million on staff, which was up from €59.7 million.

The company acquired fruit and vegetable supplier Ready Chef for €7.6 million on February 1st, which it said would broaden its offering of fresh and prepared food.

Founded in the 1960s, Ready Chef specialises in supplying fresh and prepared fruit and vegetables to the Irish food sector.

The business has more than 100 staff at its refrigerated warehousing and product preparation plant in Glasnevin, Dublin.

The family business was founded by William Tallon snrand the company has been run by his sons David and William since 1990.

Also evolved from a family-owned business started by the Geary family, Sysco Ireland sources more than 15,000 food products, of which 70 per cent is local Irish produce.

Sysco Foods Ireland forms part of the global corporation, which operates 334 distribution facilities worldwide.