Aramark records 31% profit growth for FY 2016
€60 million purchase of food and luxuries lifestyle retailer Avoca contributes €225,000 to overall net profit of €2 million
10 August 2017 | 0
Aramark Ireland posted nearly 31% profit growth in its last financial year, The Irish Times reports, in a result bolstered by the €60 million purchase of Avoca Handweavers.
Gross profit rose from €35.1 million the previous year, to deliver a total of €45.8 million in gross profit for the year to €45.8 million. Meanwhile, group turnover also rose to 30.4% to reach €310.1 million.
According to The Irish Times, Aramark managed to beat off competition from a number of other companies, including Dunnes Stores, to buy Avoca Handweavers.
Established in the 1970s as a textiles business, Avoca was thought to have been purchased for more than €50 million by Aramark Ireland from the Pratt family. However accounts show the actual amount it sold for was €59.9 million.
What’s more, The Irish Times reports that documents lodged in late June with the Companies Registration Office contained the last set of accounts for Avoca to January 2016. These showed the food and lifestyle luxuries retailer has chalked in excess of €4 million in restructuring and related costs ahead of the Aramark deal.
The Avoca deal contributed €43 million of sales for the almost nine months in which it was under the control of Aramark Ireland for the financial year 2016. Its contribution to the group’s €2 million net profit was €225,000. Aramark also recorded €33.7 million of goodwill associated with the purchase of Avoca.