Eason back in profit as digital sales rise and confidence improves

Irish-owned retailer Eason returned to profit last year, helped by improved consumer sentiment and rising digital sales.

Accounts for Eason Holdings plc, which were sent to its 230 shareholders yesterday, show that the books, news and stationery retailer recorded an after-tax profit of €1.2 million in the 53 weeks to the end of January 2016. This compared with a loss of €2.7 million in the previous financial period.

Its revenues rose by 9 per cent to €147.2 million, excluding joint ventures. Turnover in the Republic rose by 10 per cent to €121.7 million and by 13 per cent in Northern Ireland to €25.5 million, which reflected conversion rates from sterling into euros.

Digital sales increased by 33 per cent, and the company achieved a “strong” performance last Christmas with like-for-like revenues rising by 8.4 per cent.

Digital now accounts for 5 per cent of Eason’s revenues in the Republic and 10 per cent of all book revenues.

Eason’s Ebitda (earnings before interest, tax, depreciation and amortisation) rose by 37 per cent to €7 million while shareholder funds increased by €9.6 million during the year, “reflecting ongoing improvement in the commercial property market”.

A revaluation of its property portfolio resulted in an increase in value of €9 million while the sale of a shop in Belfast netted a profit of €1.3 million. The improved financial performance allowed it to pay a dividend to shareholders of €500,000 and to reverse pay cuts of between 5 and 10 per cent to staff on May 1st of this year.

Continue to grow

In terms of current trading,

Conor Whelan

, Eason’s managing director, told

The Irish Times:

“Our aim is to maintain our profitability at an Ebitda level and to continue to grow. It is mid-single digit [growth] year to date but that doesn’t mean anything in terms of back-to-school and Christmas [its busiest trading periods annually].”

On Brexit, Mr Whelan said: "Seventy per cent of our book purchases are sterling based . . . Volatility on the currency makes it difficult on pricing decisions and you can't keep changing your pricing every day.

“And any impact on consumer confidence, disposable incomes or on Irish economic growth would also be bad. It’s a level of uncertainty that we could do without but hopefully things will stabilise.”

Eason has spent €3 million of a planned €4 million on refurbishing its flagship store on O’Connell Street in Dublin over five years. It plans to launch a loyalty card app in August.