FedEx’s Irish subsidiary makes net profit of €440,000

FedEx Express Ireland recorded a net profit of €439,891 in the year to the end of May 2021, down from a restated profit of almost €1.3 million in the previous 12 months, accounts filed at the Companies Office show.

No dividend was paid to its parent company FedEx Group – the delivery, courier and shipping giant – for which the Irish subsidiary operates a global data centre in Dublin.

Turnover fell 30 per cent to €21.7 million in the year, which the company said was due to changes in its revenue accounting practices.

Costs, including those of the Dublin data centre, dropped 20 per cent, while the data centre earned fees of almost €9.2 million, up from €7.95 million.

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The company’s revenue accounting practices were updated for the year following internal procedural changes related to how transactions for the transport of international packages are treated. Based on the previous revenue accounting practices, its revenue for the period would have been about €30.3 million, it said. For the year to the end of May 2020, its turnover was €31 million.

FedEx Express Ireland Limited, which employs 110 people and has net assets of €13.5 million, was previously known as TNT Express Ireland Limited. Employees and assets were transferred to this subsidiary, while the company previously known as FedEx Express Ireland Limited is now called FedEx Express Ireland Transportation Limited and is being wound up.

In the directors’ report accompany the accounts the Irish company indicates it expects “to continue to make a positive contribution” to FedEx for the foreseeable future. It has an undertaking of financial support from its parent company through until June 2023.