Profits up 12% at Barry Group
The Barry Group has announced it made before tax profits of €3m in 2009; as a result of reducing its cost base and expanding operations
13 August 2010
Barry Group has announced profits before tax of €3m in its full year-end results for 2009, an increase of more than 12% on the €2.67m it earned the previous year. Managing director, Jim Barry said: “We’ve managed to increase our net profit on a reduced turnover through aggressively managing our cost base and prudent management of credit risk. The Irish retail environment continues to be extremely competitive and operating margins continue to be squeezed. Our profits in 2009 were driven primarily through reducing our cost base, out-performing the market and re-inventing our retailer offering.”
Turnover reported in the financial year ending 31 January 2010 showed a fall in sales from €212.5m achieved in 2008 to €207m in 2009, which the company attributes to a consumer spending slowdown and a significant reduction in the average cost per box, reported across the industry.
Profit at the Group was €3m (representing a 12% increase on 2008), a performance unmatched by any other large wholesale chain during unprecedented market conditions. The company attributes its positive performance to reducing its cost base and expanding its operations.
“The Barry Group is currently trading ahead of the market, driven primarily by significant growth through Carry Out and Buy Lo, our new branded discount chain which has outlets successfully running in Ashbourne and Tralee. Our desire to grow and outperform the market is deep-rooted and we continued to invest heavily last year – first in acquiring the Carry Out specialist off-licence business at the tail-end of 2009. The full benefit of that takeover is expected to add €42m to our annualised turnover reported next year. We also recently invested €1.5m in doubling the capacity in our central distribution facility,” he added.
The group is actively seeking new sites across Ireland for Buy Lo, its Irish brands discount store. The aim is to open another eight new Buy Lo stores before the end of 2010, bringing the total number of Buy Lo stores to 10. The company also plans to double the number of Carry Out stores by 2012. Barry Group supplies product to over 700 stores including 237 affiliated stores in the Republic of Ireland operating under the Costcutter Carry Out, Buy Lo and Quik Pick brands.