Irish arm of M&S returns to profit as revenues rise

Core Viewpoint - Marks and Spencer (M&S) Ireland returned to profitability with pre-tax profits of €18.72 million, marking a significant recovery from a previous loss of €8.8 million, driven by a slight increase in revenues and a reduction in exceptional charges [1][2]. Financial Performance - Revenues increased by 0.16% from €371.66 million to €372.26 million in the fiscal year ending March 2025 [1]. - The pre-tax profit of €18.72 million represents a positive swing of €27.5 million compared to the prior year's loss [1]. - Exceptional charges decreased from €42.32 million in fiscal 2024 to €9 million, primarily related to redundancy costs [2]. Sales Performance - Food sales grew by 5.8%, increasing from €161.4 million to €170.73 million, supported by the rollout of food offerings to Applegreen stores [3]. - Store sales in fashion, home, and beauty declined by 5.8%, from €156.47 million to €147.47 million, attributed to challenging market conditions [4]. - Online sales in the same categories saw a slight increase of 0.5%, rising from €53.77 million to €54.05 million [4]. Cost Management - Gross profit was reported at €134.7 million, a decrease of €7.2 million from the previous year, mainly due to reduced sales in fashion, home, and beauty, along with increased logistics costs [5]. - Operating expenses decreased by €1 million, driven by a reduction in staffing costs and store cost savings [5][6]. - The number of employees declined by 100, from 1,228 to 1,128, with staff costs decreasing from €55.9 million to €53.66 million [6]. Additional Financial Insights - Non-cash depreciation costs accounted for €11.98 million, and director pay totaled €702,000 [7]. - Shareholder funds at the end of March 2025 amounted to €181.55 million, including accumulated profits of €74.68 million [7]. - Cash funds decreased significantly from €13.8 million to €4.79 million [7]. Operational Challenges - A cyber incident in April 2025 impacted the performance of the Ireland business in the first half of the 2026 financial year, affecting online operations and store sales [8]. - The food business faced challenges due to higher levels of waste caused by manual stock allocation [9].