Bewley's Expecting 2018 Profits After Brexit-Related Losses Last Year
Published on Nov 22 2018 1:50 PM
Bewley's is expected to return to profit this year after its €18.6 million loss in 2017, according to the Irish Times.
It is expecting a flat growth, moving into profitability this year, assuming there isn’t a hard Brexit.
It benefited from the reopening of its flagship store on Grafton Street, which reopened in November of last year. It has attracted some 700,000 customers since its reopening.
The Irish coffee company revealed that this is mainly due to a ‘goodwill write-down’, preparing for potential Brexit impacts.
According to the Irish Times, Bewley's UK operations account for 41% of the company’s overall business.
'A Significant Matter'
The group has said to have taken a series of Brexit-related measures, with its chief executive John Cahill describing the event as a “significant matter” for the business.
It set up a 15 senior manager strong task force to examine a series of mitigating actions in order to prepare the company for the UK’s departure from the EU.
In preparation, the company has increased its warehouse facilities, expanded its roasting capacity in the UK and has worked closely with its supplier to ensure the supply of its raw materials is not affected by an increasingly-likely hard Brexit.
“The entire supply chain is getting ready,” Mr Cahill said. “We are looking at increased inventory within the system and looking at an acceleration of production.
“We’ve also put appropriate staff through customs training and have received authorisations as an authorised economic operator, which effectively gives you priority for customs clearance ... as you’re a trusted trader that customs can rely on.”
Brexit had a noticeable effect on trading last year, mainly through the weakness of sterling and the dollar against the euro.
Its turnover last year decreased by 8% to €150.6 million, half of which was reported to be currency related.
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.