Supermac’s Achieves Record €314 Million Revenue Amid Profit Decline

Revenues for the Supermac’s group, led by co-owners Pat McDonagh and Una McDonagh, reached an unprecedented €314.1 million in the last fiscal year, marking a significant milestone for the restaurant and hospitality chain. The latest consolidated accounts from Supermac’s (Holdings) Ltd reveal that while revenue rose by 7 percent from €294.37 million, pre-tax profits experienced a decline of 9.5 percent, falling to €39.44 million.

A notable factor contributing to this profit decline was the group’s pension costs, which amounted to €7 million across the organization. This included €2 million specifically for the directors, Pat and Una McDonagh, who each hold a 50 percent stake in the company. As a result, total directors’ remuneration surged from €152,425 in 2023 to €2.15 million, reflecting the combined pension and salary expenses.

Pension Costs and Staffing Changes Impact Financials

The significant pension payments led to an increase in overall staff costs of 21 percent, rising from €57.1 million to €68.89 million. This figure comprises €56.19 million in salaries, €7 million in pension costs, and €5.69 million in social welfare contributions. The total number of employees, however, decreased from 2,527 to 2,458, with 2,279 in operational roles and 179 in management and administration.

Despite the challenges, the company remains optimistic about its growth trajectory. The McDonaghs noted in their directors’ report that “turnover continues to be strong, reflecting the strong demand for the goods and services provided by the group.” They highlighted that gross profit margins have remained favorable, even as costs continue to escalate.

Expansion and Financial Stability Strengthen Group’s Position

Earlier this month, Supermac’s expanded its footprint with the opening of the €20 million Banner Plaza on the M18, strategically located between Limerick and Galway, just outside Ennis. This expansion is expected to bolster the group’s presence in the region while contributing to future revenue growth.

The group reported a post-tax profit of €32.95 million, following a corporation tax charge of €6.48 million. Supermac’s generated an additional €3.75 million in other operating income during the year. The financial results have strengthened the group’s balance sheet, with accumulated profits totaling €285.99 million at the end of December 2024. Cash reserves also saw a significant increase, growing from €111.65 million to €139.65 million.

The financial performance, despite the challenges faced, positions Supermac’s as a resilient player in the competitive restaurant and hospitality sector, with ongoing potential for growth and expansion in the future.