The Irish operation of aviation culinary suppliers Gate Gourmet reported a 48pc decline in pre-tax profits, dropping to €1.16m in 2023, primarily attributed to the end of cost-saving measures enacted during the Covid-19 pandemic, despite a revenue increase of 17%.
The rise in revenue was driven by growth coinciding with an increase in passenger numbers at Dublin Airport, which reached 31.9 million in 2023.
The company is facing significant risks from acute staffing shortages and higher costs from inflation affecting food products and utilities, prompting them to implement various measures to maintain staffing levels and manage expenses.
While profits have dipped compared to the previous year, they remain consistent with pre-pandemic levels, with the company still benefiting from rental income and interest payments, allowing it to maintain shareholder funds totaling €8.07 million.
Gate Gourmet was founded in Switzerland in 1992 to cater for Swissair and has grown to a global company with a comprehensive catering network serving the aviation industry.
The directors shared: “To address this challenge, we have implemented several measures, including hiring more agency staff, improving staff flexibility and enhancing employee engagement. “Our customer contracts are such that product costs are passed on to customers,” they said. “On utility price increases, we are continually working to pass this incremental cost to customers.”
