This follows the publication of new accounts for Nando’s Chickenland Ireland Ltd, which reveal a 16% drop in pre-tax profits to €4.7 million, attributed to inflation and rising costs. Despite this, revenues increased by 11%, climbing from €30.7 million to €34.2 million in the 12 months up to February 25, 2023.

The company’s directors confirmed their plans to identify potential sites for expansion in the Republic of Ireland. They also noted that, in the first quarter of the financial year ending February 2025, sales continued to grow, reflecting strong customer demand. However, they acknowledged that inflation remains at historically high levels, driven by elevated commodity prices and global economic pressures stemming from geopolitical instability.

The directors highlighted the challenges posed by these cost pressures but stated that the company is implementing initiatives to manage their impact. Nevertheless, they anticipate these factors will weigh heavily on performance in the current financial year. Despite this, their strategy remains focused on expanding restaurant numbers, profitability, and market share. They plan to drive growth by optimizing existing locations and pursuing opportunities for like-for-like sales increases.

The company reported operating profits of €5.9 million, which, after €1 million in interest payments and a €200,000 foreign exchange loss, resulted in a pre-tax profit of €4.7 million. Total costs for the year were €3.3 million.

Staff numbers increased from 485 to 508, with staff costs rising from €9.9 million to €10.9 million. Directors’ pay amounted to €200,000.

After accounting for a corporation tax charge of €800,000, the company posted a net profit of €3 million.

At the end of February 2023, accumulated profits stood at €28.4 million, while the firm’s cash reserves grew from €18.7 million to €19.7 million.