Avoca’s parent Aramark recorded €21m loss on Irish operations in 2021

The Irish arm of global catering, cleaning and facilities manager Aramark made a pretax loss €21.6 million last year. This was down from a loss of almost €60 million in 2020.

According to accounts filed with the Companies Registration Office, Aramark Ireland Holdings Ltd, the parent company of the Avoca retail chain and Campbell Catering, had a turnover of just under €199 million for the 12 months to October last year, down from €238 million a year earlier, mainly due to the pandemic.

When cost of sales, administrative expenses, restructuring and related costs were taken into account, the group generated an operating loss of €20.9 million, down from €58 million the year before.

US listed multinational Aramark acquired the Avoca chain from the Pratt family for a reported €64 million in 2015. It also holds catering contracts with Croke Park, University Hospital Galway and three direct-provision centres, making it one of the largest private sector employers here.

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The business employed 3,288 staff last year, down from 4,587 a year earlier.

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In their report, the directors of the company said the business had been significantly impacted by the Covid-19 pandemic, resulting in the closure of several client sites and a reduction in activity levels in many of those sites that remained open.

“The business has maintained a strong focus on cash generation, and this was achieved mainly through contract renegotiations to reflect the difficult trading environment, continued discipline in terms of costs and by availing of various Government support schemes,” they said.

“These schemes were vital to our business and to the hospitality sector as a whole. We remain positive about the significant growth opportunities in the market and believe that Aramark is well positioned to take advantage of these opportunities.”

The directors also highlighted what they see as the chief risk factors facing the business, which included the potential impact of higher interest rates and inflation “on served markets”.

They also cited “the risk of unrealistic increases in wages impacting adversely on competitiveness of the group and its customers”.

“These risks are managed by innovative product marketing, the use of alternative sourcing of products and strict control of costs,” they said.