Pettitt’s supermarkets and hotels post a profit of 7.3 million euros despite the warning

Profits for the supermarket and hotel group owned by the Pettitt family of Wexford rose to €7.3million last year from €1.7million last year as it benefited from the easing of pandemic-related restrictions on its business.

The Pettitt family owns a number of supermarkets operating as SuperValu franchises and a number of well known hotels.

But directors have warned that it is “impossible to know” how the ongoing war in Ukraine will affect business amid prospects of energy rationing, rising inflation and rising consumer prices.

The group’s hotel properties include the Talbot Hotel in the town of Wexford, the Oriel House Hotel in Ballincollig, the Midleton Park Hotel, the Talbot Hotel in Stillorgan and the Talbot Hotel Carlow.

The six supermarkets include SuperValu branches in the town of Wexford, as well as in Arklow, Co. Wicklow, Gorey in Co. Wexford and Athy, Co. Kildare. The group also owns three pubs.

In January of this year, the group acquired the Talbot Hotel Clonmel, while in the 13 months to the end of last January it also bought another supermarket in Bray, Co. Wicklow.

The group spent €14.8 million on acquisitions in the fiscal year.

Newly filed accounts from the company behind the family business show that sales have risen to €149.4 million in the last 13 months, from €120.7 million in the previous 12-month fiscal year.

Of the turnover in the past financial year, €127 million was generated in the supermarket business and €21.5 million in the hotel business. The family’s Sleeda farm had a turnover of €845,000.

The group is led by Cormac Pettitt.

Of the nearly 1,200 employees, around 631 work in the supermarkets and 340 in the hotels. With the acquisition of the hotel in Clonmel and the supermarket in Bray, the number of employees increased by a third.

Directors noted that the supermarket division has acted well recently, with the “principal focus” being on reducing the cost base and improving efficiencies to maintain a level of profitability for reinvesting in the store.

The group’s hotels also did well in the past financial year.

“We remain in a turbulent macroeconomic climate following the outbreak of war in Ukraine and the resulting impact on energy prices, as well as post-pandemic inflation and the likelihood of interest rate hikes,” directors warned.

“Looking ahead to the fourth quarters of 2022 and 2023, it is almost impossible to predict how the war in Ukraine will continue to impact our business given the possibility of energy rationing and continued rising consumer prices,” they added.

Directors note in the financial statements, “We have taken steps to improve energy efficiency and reduce our dependency on fossil fuels with a major capital investment in solar energy in 2022, while taking steps to hedge electricity and gas prices going forward .”

At the end of January, the group had net debt of EUR 19.8 million compared to EUR 19.2 million. However, it said it continues to “aggressively” repay its debt.

https://www.independent.ie/business/irish/pettitts-supermarkets-and-hotels-post-73m-profit-amid-warning-42239584.html Pettitt’s supermarkets and hotels post a profit of 7.3 million euros despite the warning

Fry Electronics Team

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