BWG Foods Reports 29% Profit Surge Driven by Record Sales

Pre-tax profits at BWG Foods increased by 29% to €39.99 million for the year ending September 2024, following record sales of €1.71 billion. The wholesale group, which operates several retail and convenience brands in Ireland, attributed its financial success to various factors including volume increases, inflationary pressures, and strategic acquisitions.

BWG Foods UC, which is ultimately owned by The Spar Group Limited based in South Africa, is known for its collaboration with over 1,000 independent retailers. These partnerships serve more than 1 million customers daily across the country. The latest financial reports reveal a 5.6% rise in revenue from €1.62 billion to €1.71 billion over the twelve-month period.

Key Financial Highlights and Acquisitions

The directors noted that the company achieved record sales year-on-year, with growth driven by increased sales volume and inflation. Significant acquisitions also played a role in this growth, including the purchase of the trade and assets of Faherty Wholesalers for €500,000. In October 2023, BWG Foods acquired two subsidiaries: William’s Gate Ltd for €4.5 million and Tuffy Wholesale Ltd for €14.3 million, both financed through inter-company loans.

Operating profits for the group rose by 23.6% to €52.18 million, benefiting from an exceptional gain of €582,000 compared to an exceptional cost of €7.24 million in the previous year. After accounting for finance costs of €12.18 million, the group recorded a pre-tax profit of €39.99 million.

Employee Growth and Financial Outlook

BWG Foods also saw an increase in workforce numbers, rising from 1,491 employees to 1,650. Staff costs increased significantly, from €79.7 million to €91.25 million, while directors’ pay rose from €6.8 million to €7.8 million. The business reported post-tax profits of €34.67 million after incurring a €5.32 million corporation tax charge.

The directors acknowledged that operating expenses have fluctuated due to market volatility, inflation, and rising wage pressures, stating that “this area continues to be closely monitored by management.” The cost of sales increased from €1.42 billion to €1.49 billion, while net operating expenses rose from €164.7 million to €179.2 million.

Most of BWG Foods’ sales originated in Ireland, amounting to €1.7 billion, with only €4.9 million generated from the UK market. As of the end of September 2024, shareholder funds totaled €102.4 million, including accumulated profits of €73.8 million. The directors expressed satisfaction with both the current results and future trading prospects, indicating a commitment to further business development.