Sales at chocolate maker Lily O'Brien's increased €3.4m last year as the Kildare-based company returned to profit.

Accounts for Lily O'Brien's Holdings Ltd show sales rose 10.8% year-on-year from €27.6m to €30.9m, and the firm made a pre-tax profit of €423,000 compared to a loss of €158,700 in 2022.

Lily O'Brien's made a profit of €267,200 after tax of €147,800 following a comprehensive loss of €216,300 the previous year.

After paying a dividend of €2m in 2022, the directors paid an interim dividend of €500,000 during 2023 and did not recommend a final dividend.

The cost of sales increased year-on-year from €20.8m to €23.1m and administrative expenses also rose from €6.4m to €6.7m.

The company reported shareholder's funds of nearly €10.1m, including accumulated profits of €8.6m.

The directors said that 2023 had been a much improved year for the group due to strong sales growth in Ireland and the UK.

"These markets have stabilised since the pandemic and the directors are confident that they will be able to continue to drive the strategic growth plan for the business in these core retail markets," they added.

"The legacy impact of the pandemic continues to effect the global airline and hospitality sectors, which are the group's main food service sales channels.

"These sales channels have yet to return to pre-pandemic levels.

Lily O'Brien's had an average of 213 employees last year between production (191), administration (10), and marketing & sales (12).

Staff costs rose from €6.8m to €7.6m, including directors' remuneration of €173,400.

Lily O'Brien's was sold to Polish food group Colian, which also owns British chocolate brand Elizabeth Shaw, for €40m in 2018.