Avoca is owned by Aramark Ireland Holdings. Photo: Kevin Scott
One-off costs of €11.52m at the owner of the Avoca brand contributed to Aramark’s pre-tax losses increasing almost threefold to €19.14m in 2024.
New consolidated accounts filed by Aramark Ireland Holdings and subsidiaries show that the group’s pre-tax losses surged by 175pc from €6.96m to €19.14m as revenues rose by €48.3m from €311.42m to €359.8m in the 12 months to the end of September 2024.
The €11.52m one-off cost arises from Aramark incurring a €9.9m provision from fulfilling a services contract after management determined that the contract will result in a net loss over its remaining life.
The group also incurred a €1.6m impairment charge on intangible assets associated with the delivery of the contract.
The overall business expanded rapidly in 2024 with “Food Service” its best performing segment where revenues rose by 22.5pc from €163.77m to €200.5m.
Numbers employed at the Irish arm of the global integrated services group also rebounded sharply as the group’s workforce increased by 873 from 6,317 to 7,190. Staff costs increased from €151.92m to €170.46m.
In their review of the business, the directors state that “the group continues to focus on driving growth and promoting efficiencies across the portfolio”.
“A key aspect of this is our ability to develop, build and maintain long-term relationships across our portfolio of clients and customers which led to revenue performance for the year to increase by 16pc,” they state. The loss for the period excluding one-time items was €9.1m.
“The revenue performance and, indeed, the reduction in the reported loss excluding one-time items both reflect the organisation’s strategy to drive growth in profitability and win new business,” the directors state.
Earnings before interest, taxation, depreciation, amortisation and intangible impairment before one-time expenses of €9.9m amounted to a €7.8m profit in 2024.
Elsewhere in the business, revenues at the group’s facilities management increased by 15pc from €61.53m to €70.53m while revenues at the group’s retail division rose marginally from €74.28m to €75.1m. The group’s property management revenues increased by 15pc from €11.84m to €13.63m.
Revenues includes subsidiary Campbell Catering which provides catering services for the State to several direct provision centres.
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