Smyth Toys Sees 23 Percent Surge in Operating Profit in Irish Market
The financial performance of Smyths Toys in Ireland demonstrates significant growth, with a 23% increase in operating profit reported for the 2024 financial year. This surge is attributed to enhanced service provisions to group companies, as revealed in their latest financial statements.
Smyths Toys’ Impressive Financial Highlights for 2024
During 2024, Smyths Toys reported a turnover of €296.6 million, reflecting a year-on-year increase of €9.5 million. The company generated over €282 million from the sale of goods, while services provided to group companies contributed €14.4 million, a substantial rise from €1.3 million the previous year. Overall, operating profit rose by €1.4 million to €7.2 million, leading to an after-tax profit just under €6 million.
Key Figures from Smyths Toys’ 2024 Financial Statements
- Turnover: €296.6 million
- Operating Profit Increase: 23% (€1.4 million to €7.2 million)
- Profit After Tax: Just under €6 million
- Dividends Paid: €8 million
- Net Assets: €4.6 million
- Average Employees: 753
- Total Staff Costs: Just under €20 million
Expansion and Strategic Growth Initiatives
This growth in operating profit aligns with the company’s broader strategy, which includes focusing on store footfall and service offerings. Smyths Toys opened seven new stores during the year, though they did not add any additional locations in 2024. They made a significant investment of €31 million in existing stores and logistics facilities.
Wider Business Development
Smyths Toys operates a vast network of 311 stores across Ireland, the UK, Germany, France, Austria, Holland, and Switzerland. Specifically, there are 124 stores located in England, Scotland, and Wales. The retailer has also seen expansion in France, now boasting 52 locations, and has 76 stores in Germany, along with 16 in Austria and 11 in Switzerland.
The company’s UK operations reported a revenue of £953.5 million (€1.09 billion), indicating a 2% year-on-year growth. Notably, Smyths Toys UK Ltd increased pre-tax profits to £18.5 million, up from £18.4 million the prior year, driven by strong sales in popular product lines, including Lego and Nerf Guns.
Conclusion
Overall, Smyths Toys has demonstrated resilience and strategic growth amid a competitive marketplace and economic challenges. The board expressed satisfaction with the results achieved, highlighting the success of their service offerings and store expansions as pivotal to their financial gains.
