CORK-BASED wholesale distributor James A Barry Company Ltd has announced an increase in pretax profits to €3 million for 2009, an increase of 12 per cent on its 2008 results.
Turnover reported in the financial year ending January 31st, 2010, showed a fall in sales from €212.5 million in 2008 to €207 million in 2009, which the company attributed to a slowdown in consumer spending and a reduction in the average “cost per box” across the distribution business.
The company attributed its performance to a reduction in its cost and increased levels of services to its customer base.
Managing director Jim Barry said the company had managed to increase net profits on a reduced turnover through aggressive management of its cost base and prudent management of credit risk.
“The Irish retail environment continues to be extremely competitive and operating margins continue to be squeezed,” the 2010 Ernst Young Entrepreneur of the Year nominee said. “Our profits in 2009 were driven primarily through reducing our cost base, outperforming the market and reinventing our retailer offering.
“Our desire to grow and outperform the market is deep-rooted and we continued to invest heavily last year – first in acquiring the Carry Out specialist off-licence business at the tail-end of 2009.
“The full benefit of that takeover is expected to add €42 million to our annualised turnover reported next year. We also recently invested €1.5 million in doubling the capacity in our central distribution facility,” Mr Barry said.
The company said it was actively seeking new sites across Ireland for Buy Lo, its discount store brand, with the aim of opening another eight stores before the end of 2010.
The group also plans to double the number of Carry Out stores nationwide by 2012.
Founded by James A Barry in 1955, the company originally sold fruit and vegetables in the north Cork area. It now supplies products to more than 700 stores, including 237 affiliated stores operating under the Costcutter, Carry Out, Buy Lo and Quik Pick brands, as well as trading in more than 10 other countries.
The company employs 240 staff and operates from a central distribution centre in Mallow, Co Cork.
