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Exceptional costs puts drinks firm into the red

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The lure of wine and bright lights and the fear of missing out

The lure of wine and bright lights and the fear of missing out

Getty Images/iStockphoto

The lure of wine and bright lights and the fear of missing out

Exceptional costs totalling €34.7m contributed to pre-tax losses of €38m at drink group M&J Gleeson (Investments) Ltd last year.

Alcoholic drinks firm C&C Group purchased M&J Gleeson for €12.4m in 2012 and new accounts show that the Co Tipperary group recorded the losses in the eight months to the end of February 28 last after enjoying a pre-tax profit of €2.39m in 2012

The group's brands include Tipperary Mineral Water, the Finches range of soft drinks and the Estrella range of beers.

The group's revenues last year declined 37.5pc to €159.76m.

However, the main factor behind the steep drop in revenues was last year's accounting period being only eight months and the prior year being 12 months.

The hefty losses arose from a write-down of €29.2m in fixed assets; a €4.5m write-down in goodwill; a €3.9m write down in stock; and a bad debt provision of €2.9m.

The group recorded an operating loss of €3.9m that followed an operating profit of €4.72m in 2012.

Numbers employed by the group decreased from 655 to 625 with staff costs reducing from €20m to €12m.

According to the directors' report, "the group will continue to seek growth through the development of new and existing products and markets as it integrates with the Irish business of C&C group plc post period end".

The group had accumulated profits of €4.22m with shareholder funds standing at €4.86m.

The figures that the group's losses take account of non-cash depreciation costs of €2.93m.

Directors emoluments reduced from €473,869 to €387,394.

Irish Independent