Premier Capital plc, one of Malta’s largest companies and the McDonald’s developmental licensee across six European markets, reported higher revenues in 2025, but saw profits decline as costs rose at a faster pace.

The group generated €772.7 million in revenue for the year ended December 2025, up 8.1 per cent from €714.7 million in 2024, driven by network expansion and increased customer volumes, with over 94 million customers served across its markets.

However, this top-line growth did not translate into improved profitability. Operating profit fell to €64.4 million from €69.8 million a year earlier, while pre-tax profit declined to €54.5 million from €61.9 million.

Margins also came under pressure, with the group’s post-tax profit margin dropping to 5.3 per cent from 7 per cent and EBITDA margin declining to 13.1 per cent from 14.4 per cent.

The key driver behind this contraction was a sharp increase in operating costs. The company highlighted rising raw material prices and labour expenses as major pressures during the year. Notably, “beef prices continued to increase and remained one of the fastest-rising food categories in the EU, reaching historically high levels due to supply shortages,” the company said.

At the same time, labour shortages across the quick-service restaurant sector led to sustained upward pressure on wages, as the group invested in employee retention, benefits and development across its 11,500-strong workforce.

Additional cost pressures stemmed from macroeconomic factors, including currency movements. The depreciation of the Romanian leu alone had an adverse impact of €2.02 million on profitability during the year.

Despite the margin squeeze, Premier Capital continued to invest heavily in growth, opening a net nine new restaurants to reach a total of 202 locations and deploying €33.4 million in capital expenditure across new sites and refurbishments.

The company also maintained strong marketing spend, which increased to €38.7 million, as it sought to protect market share and brand positioning in a competitive environment. 

Looking ahead, the group cautioned that ongoing geopolitical tensions and supply chain disruptions may continue to exert upward pressure on costs, potentially weighing further on profitability even as revenues continue to grow.

Premier Capital is owned by Hili Ventures, the Malta-headquartered group with diversified interests spanning food, technology, real estate and logistics.