Boost in Profits by 29% to €40 million reported by BWG Foods, fueled by historic €1.7 billion sales figure
BWG Foods Reports Strong Financial Performance and Strategic Acquisitions
BWG Foods, a prominent player in Ireland's wholesale and retail grocery sector, has announced a strong financial performance for the year ending September 2024. The company's revenue increased by 5.6% from €1.62 billion to €1.71 billion, marking a new record for the company [1][2][5].
The growth was driven by a combination of volume increases, inflation, and strategic acquisitions. Among the acquisitions made during the year was the purchase of Faherty Wholesalers for €500,000 and the acquisition of two subsidiaries, William’s Gate Ltd for €4.5 million and Tuffy Wholesale Ltd for €14.3 million, both through inter-company loans [1][2].
Pre-tax profits for the year increased by 29% to €39.99 million, reflecting the highest sales year-on-year the company has experienced [1][2][5]. However, the cost of sales rose from €1.42 billion to €1.49 billion, and net operating expenses increased from €164.7 million to €179.2 million, corresponding with the company's expansion and growth activities [1].
Shareholder funds at the end of September 2024 totalled €102.4 million, including accumulated profits of €73.8 million [1]. The company incurred a corporation tax charge of €5.32 million, resulting in post-tax profits of €34.67 million [1].
BWG Foods serves over 1 million shoppers daily, working in partnership with more than 1,000 independent retailers [1][5]. The company operates several brands in Ireland, including Mace, Spar, Eurospar, Londis, and XL [1]. The vast majority of sales occurred in Ireland, accounting for €1.7 billion of sales, with only €4.9 million occurring in the UK [1].
Operating expenses have fluctuated in response to market volatility, inflation, and increased wage pressure. The group's operating profits take account of non-cash depreciation and amortisation costs of €24.3 million [1]. The number of employees in the business increased from 1,491 to 1,650, with staff costs rising from €79.7 million to €91.25 million. Directors' pay increased from €6.8 million to €7.8 million [1].
BWG Foods UC, a retail and convenience group, is ultimately owned by The Spar Group Limited, which is South African-incorporated [1]. The group operates a distribution center and 20 cash and carry outlets under the Value Centre brand throughout Ireland, along with two wholesale cash and carry outlets under the Better Deal brand [1].
Despite the satisfactory results, the directors did not make any new statements about the continued development of the existing business [1]. The company intends to continue focusing on its existing business, driven by its commitment to delivering quality products and services to its customers [1].
[1] - BWG Foods Annual Report 2024 [2] - Irish Times, "BWG Foods posts record sales and profit growth," 2024 [5] - BWG Foods Press Release, "BWG Foods announces record sales and strong financial performance," 2024
Industry growth was facilitated by BWG Foods' strong financial performance and strategic acquisitions in the finance sector, contributing to the business expansion and overall growth of the industry. BWG Foods, with its record-breaking revenue and profit growth, demonstrated a significant impact on the Irish wholesale and retail grocery sector, showcasing a promising trajectory for future developments in the industry.
