Monday 16 September 2019

Rising costs hit Glenisk profits as UK rivals get sterling boost

Total pay to directors was up from €674,000

Secret Millionaire: Glenisk managing director Vincent Cleary
Secret Millionaire: Glenisk managing director Vincent Cleary

Gordon Deegan

Increased costs contributed to pre-tax profits at Glenisk more than halving last year to €347,864.

Revenues at the country's largest Irish-controlled yogurt producer dipped marginally from €21.86m to €21.76m.

The firm is led by former RTÉ 'Secret Millionaire' Vincent Cleary and last year produced 100 million yogurt servings.

Last year, sales in Ireland increased from €20.8m to €21m though sales in the UK fell back by 32pc from €1m to €697,878.

The profit last year takes account of non-cash depreciation costs of €424,262.

A spokeswoman for Glenisk said yesterday: "2017 was a solid year for Glenisk in terms of revenue, but we faced significant challenges in terms of profitability.

"This was largely due to increased investment in our raw materials - increasing the premiums paid to our farmers and fruit suppliers and in research and development to bring new products to the market.

"Brexit contributed in that changes to sterling facilitated a number of UK-based yogurt manufacturers in heavy discounting in this market."

The company employs 75 and today has 15pc of the yogurt market.

The business last year increased its spend on advertising from €1.2m to €1.5m while the spend on trade promotions increased from €2m to €2.28m.

Staff costs last year increased by 9pc from €3.08m to €3.37m.

Directors' pay last year increased from €674,584 to €912,883.

The spokeswoman said: "We see growth returning in terms of revenue.

"Profitability is expected to be similar to last year, as we have continued to invest in our innovation, our ingredients, farms and in providing value for customers at the check-out."

Shareholder funds stood at €8m, including accumulated profits of €3m.

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