Post-tax profits fell to €5.47m for the year ended January 31, 2023. The result compared to a €7.34m profit in the prior 13-month period. In the directors' report, signed by Desmond and Cormac Pettitt, Torski blamed the 25pc decrease in profit on increased costs due to inflation, especially energy costs. Employee numbers also increased by 16pc to 1,372 following the full reopening of its operations after the Covid pandemic, resulting in an increase in wage costs of €13.25m.
“Both the supermarkets and hotel divisions traded well in the year to January 31, 2023, with the key focus being on reducing the cost base and improving efficiencies to maintain a sufficient level of profitability to reinvest in the business,” said the directors' report. “The outbreak of war in Ukraine in 2022 kick-started enormous energy price rises and coupled with post-pandemic inflation put huge pressure on the group’s cost base. “That trend continued… into 2023 [and] continued interest rate rises have created further headwinds in the macro-economic climate.”
The report added that energy prices appeared to be softening in the fourth quarter of 2023 heading into this year, but overall inflation remained “stubbornly high”. Torski also renegotiated its debt facility with Bank of Ireland, with net debt standing at €27m as of January 31, 2023. The new facility allowed it to reinvest in its properties, including the refurbishment of Pettitt’s Supervalu in Wexford Town.
