Pre-tax profits for the Milano pizza chain fell by 80% last year, reaching €2.34 million. This decline was attributed to “sector-wide headwinds,” according to the company’s directors. Despite this drop, Agenbite Ltd, which operates the chain, reported a revenue increase of 5.5%, rising from €25.48 million to €26.9 million.
A significant factor in the profit decrease was a non-cash gain of €1.27 million. This was a reversal of previous impairments, compared to a gain of €7.53 million in 2022. Agenbite operates 18 Milano restaurants in Ireland.
In their accounts, the directors noted, “Given the challenging trading environment and sector-wide headwinds, we are satisfied with our performance against the budget.” They emphasized that their strategy remains focused on enhancing their iconic brand and maximizing potential in current markets.
The company also faced challenges due to the absence of funds from the Covid-19 Employer Wage Subsidy Scheme (EWSS), which had previously provided €2.1 million. The reported profit accounted for €2.9 million in non-cash depreciation costs.
Looking ahead, the directors expressed a commitment to revitalizing the business through a comprehensive refurbishment program aimed at improving customer experiences in their pizzerias. They acknowledged market risks, citing high competition and low barriers to entry.
Employee numbers at the Pizza Express-owned company decreased from 552 to 516. Staff costs fell from €11.05 million to €10.54 million, while total pay for directors amounted to €1.12 million, including €25,000 in pension contributions.
Milano operates multiple locations across Dublin, including Dundrum, Dawson Street, and Temple Bar, as well as in Newbridge, Limerick, Galway, Cork, Ennis, and Killarney. There were no openings or closures of restaurants in 2023.
The company’s rental and operating lease costs decreased significantly to €2.84 million from €3.47 million the previous year. Accumulated profits at the end of the year totaled €19.77 million. Additionally, the company’s cash reserves increased from €6.34 million to €8.9 million.
Cost of sales reached €18.6 million, leading to a gross profit of €8.3 million. After paying €131,000 in corporation tax, the company reported a post-tax loss of €2.2 million.
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