Newly filed consolidated accounts for Supermac’s (Holdings) Ltd reveal that the group achieved robust profits, with revenue rising by €18 million, or 7%, from €276.29 million to €294.37 million. This marked another record-breaking year for the group in terms of revenue.

The €43.6 million pre-tax profit includes a non-cash gain of €3.74 million due to the appreciation in value of its investment properties.

The group’s directors, Pat McDonagh and his wife, Una, reported that “turnover continues to be strong, reflecting the strong demand for the goods and services provided by the group.”

As 50-50 owners of the business, the McDonagh’s further commented, “Gross profit margins continue to perform well, and while the group faces rising costs, the directors are pleased with its performance over the year.”

The group’s cash reserves also grew from €85.97 million to €111.65 million. The McDonagh’s acknowledged this “strong cash position” and expressed confidence in the group’s continued strong performance.

Following its record year, the group’s accumulated profits at the end of December reached €253 million.

Supermac’s business operations include fast food outlets, hotels, and motorway service stations, such as the well-known Barack Obama Plaza near Moneygall, off the M7 motorway linking Limerick and Dublin.

Staff numbers increased by 217 to reach 2,527 employees, with total staff costs rising from €52.98 million to €57.1 million.

Last year’s profits included non-cash depreciation costs of €6.09 million, with post-tax profits standing at €36.07 million after a €7.53 million corporation tax charge.

The group generated €44.37 million in net cash from its operating activities, while director remuneration remained steady at €152,425.

At the start of 2022, the group owed Pat McDonagh €4.99 million, and repaid him €786,938 during 2023, leaving a balance of €4.2 million by year’s end.

Additionally, Supermac’s paid €841,352 to Pat McDonagh for properties leased to the group.

In discussing business risks, the McDonagh’s noted that “the group operates in a highly competitive environment with constant pressures on margins and costs.”

They added, “Maintaining profitability requires a significant market share.”

To manage these challenges, they said the group “carefully controls costs and margins” and is increasing its market share by selecting strategic locations, focusing on a skilled workforce, and delivering an exceptional customer experience.

In 2023, the group invested €11.1 million in property, plant, equipment, and investment property, while earning €2 million from the sale of investments.