New accounts show Sodexo Ireland Ltd recorded the increase in profits as revenues rose by 17pc from €120.92m to €141.42m in the 12 months to the end of August last.
The company paid total dividends of €2.75m during the year in respect of 2022.
Sodexo Ireland Limited is engaged in the delivery of integrated on-site services to clients in business, industry, education, financial, pharma, healthcare and government services.
The directors state that the services provided include food services, infrastructure build, facilities and estate management and optimising the workplace experience.
The accounts show that numbers employed increased from 2,084 to 2,205 as staff costs rose to €74.22m. The headcount at the company last year topped pre-Covid employee numbers of 2,005 – during the pandemic-hit 2020/2021 year the firm reduced headcount by 400.
The directors say that Sodexo’s Irish business “has remained resilient throughout the adverse changes in the economic environment as a result of tight management of cash and balance sheet, and strong retention of existing contracts, alongside the spread of business across food and facilities management services, and across public and private sector clients as well as the strong inflation management processes in place”.
They state that the Irish business “continues to see opportunities for organic growth with new contracts in the pipeline”.
The Central Bank is one of Sodexo’s clients, and purchase order lists published by the Central Bank show it paid €2.8m (including 23pc Vat) to Sodexo Ireland last year.
On the competitive risks faced by the company, the directors say “the company operates in a highly competitive, low-margin marketplace where there is risk that the company could lose sales to its key competitors”.
They state that the company manages this risk by having a diversified portfolio of contracts, by focusing on delivering a quality service and by building strong relationships with customers.
The profit last year takes account of €792,000 in non-cash depreciation and non-cash amortisation costs of €137,000. The firm had accumulated profits last year of €17.33m. Cash funds increased from €11.23m to €15.09m. Shareholder funds totalled €13.8m.
