Profits at wholesale group BWG Foods, which operates the Spar, and Londis convenience chains in Ireland, rose by more than 30 per cent last year on the back of “record-high sales”.
The latest accounts for the Irish group show it made a profit after tax of €34.7 million for the 12 months to the end of September 2024, up from €26.4 million the previous year.
BWG Foods, which is wholly owned by South African-incorporated Spar Group Ltd, operates a number of retail and convenience brands in Ireland, including Mace, Spar, Eurospar, Londis and XL.
The company generated a turnover of €1.7 billion in the period, up from €1.6 billion. Its operating profit came to €52 million, up from €42 million.
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Sales increased by 5.6 per cent year on year, the directors said.
“This growth was driven by a combination of higher volumes, inflation and acquisitions,” they said. “The company achieved record-high sales year-on-year.
“Gross margin as a percentage of sales increased year-on-year to 12.7 per cent, up from 12.4 per cent,” they said.
The directors attributed this improvement in gross profit to changes in the category mix.
Spar Group first invested in the BWG business in 2014 when it paid €55 million for an 80 per cent stake to help BWG restructure boomtime property debts.
Last year BWG Foods announced a €35 million investment in its Mace retail business to support in-store improvements and marketing at the convenience franchise.
“The directors have reviewed the detailed five-year plan prepared by management. The cash flow projection underpins the going concern assessment and confirms that sufficient funding remains in place for a period of at least 12 months from the date of this report,” the latest accounts state.
