Profits at Spar and Abrakebabra franchise owner BWG Foods fell last year as the group reduced the value of some of its businesses and grappled with rising costs.
BWG Foods owns some of country’s best-known retail franchises, including convenience store operators Spar and Londis, fast food restaurant chains Abrakebabra and O’Brien’s sandwiches along with catering-related businesses.
Profit after tax at the group fell by almost a quarter to €26.6 million in the 12 months to last September 26th from €34.7 million in the preceding year, accounts just published show.
Sales hit €1.7 billion during the 12-month period, slightly ahead of the Spar owner’s previous financial year.
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The €34.7 million profit earned in the 2024 financial year was a record for the group, it pointed out when reporting those figures 12 months ago.
Operating profit last year slipped to €39.3 million from €52.2 million in 2024, the accounts show.
Around €5 million of its revenues came from the UK, while most of it originated in the Republic, according to its figures.
BWG generates revenue from the sale of products to its retailers, the accounts state.
The group paid a €16 million dividend to its shareholder in the 2025 financial year, which was unchanged on 2024.
South African-incorporated Spar Group Ltd wholly owns BWG Foods, which in turn runs leading corner shop franchise brands in this country, including Spar, Eurospar, Londis and XL.
In June, BWG announced it had acquired O’Briens Cafe, Abrakebabra and Bagel Factory, marking its entry into the quick-service restaurant sector. It is understood the value of the deal was about €15 million to €20 million.
It also owns food service groups, including Corrib Food Products and William’s Gate, and off-licence BWG Wines and Spirits.
Last year the company cut the value of its holdings in subsidiaries Tuffy Wholesale Ltd, 4 Acres Ltd and McCarrick Brothers Wholesale Longford Ltd by €28.6 million in total.
BWG partly offset the impact of this accounting exercise, known as an impairment charge, by waiving inter-company payments totalling €18.6 million.
Consequently, the group was left with a €10 million non-cash charge in its accounts, which reduced its profits for the year.
Net assets grew to €115 million from €102.5 million, aided by a fall in liabilities.
BWG shortened its financial year to 361 days from 366 to bring it into line with industry practice, the accounts state.
The group faced higher wages and overheads last year, group chief executive John Moane and chief finance officer Aidan Keane noted in the directors’ report.
Stabilising electricity costs, reduced fuel spending and increased efficiency offset some of those extra expenses, they said.
They directors stated they were happy with the performance for the year despite the fall in profits and challenges presented by the business environment.
BWG is working on a number of initiatives to cut costs, which are likely to focus on greater efficiency, including improved logistics and investing in better technology.
“BWG Foods continues to perform strongly in a highly competitive retail and wholesale market, with revenue growing on a like-for-like basis,” the group said in a statement on Monday in response to questions from The Irish Times.
Its food service business, which supplies caterers and hospitality, gained market share while new brands, including Brevato coffee, performed ahead of expectations, the company said.
“We remain well positioned to maximise opportunities for growth in the marketplace,” said BWG, noting it had an ambitious strategy and strong positions across its businesses.
