Insomnia Records Profit Increase For 2019; Says COVID-19 Pandemic Significantly Affected Its Performance In 2020
The holding company of the Insomnia coffee shop chain, BHJ Holdings, has recorded a 12.5% increase in profits to €4.16 million for 2019.
As reported by The Irish Times, the company's 2019 accounts reveal that its revenues rose by 19% from €30.9 million to €36.77 million that year.
The company's Irish revenues rose by 19% from €28.53 million to €33.9 million in 2019 while its UK revenues rose from €2.38 million to €2.86 million.
BHJ Holdings paid a €2 million dividend to Insomnia Coffee Ltd in 2019.
COVID-19 Pandemic Impact
BHJ Holdings directors said that the COVID-19 pandemic significantly affected the company's performance in 2020 "and is expected to have a significant impact on the 2021 performance too."
The company said in a note attached to its latest accounts that the impact that the pandemic has had on it "is a decline in revenues from March 2020 due to closures and a restricted ability to trade our owned stores resulting in reduced earnings before interest tax depreciation and amortisation".
The note stated that management has taken steps to mitigate the pandemic's impact, including the use of support by governments.
The note also said that the board is confident in the resilience of the business model to allow the company to positively face the challenges that are ahead.
The directors said that they are satisfied that the company is taking every possible step to ensure that it will trade through COVID-19-related difficulties.
The Irish Times quotes a spokesperson for Insomnia as saying, "COVID-19 has and continues to have an enormous impact on our business with a significant number of stores temporarily closed."
The spokesperson said that COVID-19 has accelerated the rollout of Insomnia's digital plans, including a new online store that will go live next month and feature a coffee subscription service.
The spokesperson also stated, "We continue to review the changing needs of our customers and are assessing the most appropriate business formats and locations for new coffee offerings including drive-throughs going forward."
© 2021 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.