Wholesale firm BWG Foods experienced a 20% drop in earnings last year, according to recently submitted financial reports. BWG Foods, whose parent company is The Spar Group Limited based in South Africa, oversees various retail and convenience brand operations in Ireland such as Mace, Spar, Eurospar, Londis and XL.
The company declared a post-tax profit of €26.4 million for the fiscal year concluding on September 30, 2023, representing a decrease from the previous year’s figures at €33.2 million. Nonetheless, the firm’s turnover witnessed growth, having risen from €1.5 billion to €1.6 billion. The operating profit, though, experienced a decline from €45.6 million to €41.7 million.
The company directors pointed out that profit before tax, equalling €30.9 million (a decrease of 18% from the previous year’s €37.6 million), is the key measure of the company’s financial success. Throughout the year, the company purchased two wholesale businesses worth €18.7 million with an intent of expanding their customer reach and venturing into new markets, benefiting from economies of scale and synergies.
The Spar Group, the sole owner of BWG, initially invested in the business in 2014 by paying €55 million for an 80% share to assist in restructuring property debts from the economic boom. The remainder 20% stake was sold to The Spar Group by the management team led by Leo Crawford, ex-Ibec president and current CEO, for €102 million in a deal tied to performance measures. The last segment of the transaction occurred at the end of 2020.
In March, the company publicised an investment plan of €35 million for improving in-store operations and marketing efforts of its Mace retail business. Mace had an excellent year with sales reaching a record high of €400 million in 2023, presenting a 6.5% rise from the previous year. According to company predictions, Mace’s growth is set to continue at a rate of 5% in 2024, with anticipated retail sales hitting the €420 million mark.