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Food firm swings to loss after horse meat scandal

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The horse-meat scandal hit many areas

The horse-meat scandal hit many areas

The horse-meat scandal hit many areas

The horse-meat scandal contributed to one of the country's largest food processors, the Co Waterford based Arrow Group plunging into the red last year.

New figures show that Arrow Group recorded a pre-tax loss last year of €11.6m following a pre-tax profit of €2.34m in 2012 - a negative swing of €13.94m.

This followed revenues at the group - which employs 1,603 and is owned by brothers, Peter, John and Michael Queally - declining by 3pc from €443.56m to €429.35m.

The directors state that "2013 has been a difficult year for the group". They add that "certain group subsidiaries were impacted by the European beef mislabelling issue which significantly reduced demand and price for certain beef products and frozen ready meals".

One of the firm's subsidiaries, QK Meats, apologised in May 2013 for its handing of the horsemeat scandal.

The Arrow directors state that before exceptional costs, the group recorded a pre-tax loss of €2.7m.

The accounts say that as a consequence of the European beef mislabelling issue, a subsidiary was significantly impacted as a result of a shift in market demand for the firm's product offering.

The directors say as a result, the subsidiary suffered 'lost contribution' and the best estimate of this in the loss is €4.5m.

Staff costs increased to €60.2m mainly as a result of redundancy costs of €2.49m.

Directors' remuneration totalled €261,595.

The profit includes depreciation and amortisation costs of €13.6m along with €6.2m impairment costs.

The group's accumulated profits stood at €64.69m.

Irish Independent